Intro to Paralegal Studies Practice Exam 2026 - Free Paralegal Practice Questions and Study Guide

Punitive damages are specifically intended to punish a wrongdoer for their behavior and deter others from engaging in similar conduct. Unlike compensatory damages, which are designed to make the injured party whole by covering their losses, punitive damages go beyond mere compensation. They are awarded in cases where the defendant's actions are found to be particularly egregious, malicious, or reckless. The purpose is to send a message that such behavior is unacceptable and will have severe repercussions.

In contrast, compensatory damages focus on the actual losses suffered, while nominal damages are awarded when a legal wrong has occurred but did not result in significant loss. Restitution damages aim to restore the injured party to the position they were in before the wrongful act, rather than serving as a punishment to the wrongdoer. Thus, punitive damages stand out as the type of damages focused on punishment and deterrence.