What are "punitive damages" meant to achieve?

Punitive damages serve the purpose of punishing a wrongdoer for particularly egregious conduct and deterring both the wrongdoer and others from engaging in similar behavior in the future. Unlike compensatory damages, which focus on reimbursing the injured party for actual losses incurred, punitive damages are not directly tied to the economic harm suffered by the plaintiff. Instead, they are designed to make an example out of the defendant, reinforcing societal norms and expectations regarding acceptable behavior. This can be especially relevant in cases involving intentional wrongdoing or gross negligence.

Compensatory damages, which would be related to reimbursement of actual losses, do not address the punitive aspect but rather aim to make the injured party whole again financially. Lost profits would also fall under a compensatory measure rather than a punitive one. Lastly, the concept of mitigating damages is more about reducing the negative impact on the injured party rather than enforcing consequences on the wrongdoer. Therefore, the focus of punitive damages aligns closely with the goal of punishing wrongdoing and promoting better behavior in society, highlighting their distinct purpose in the legal framework.