What are punitive damages and how do they work?

What are punitive damages and how do they work?

Punitive damages are financial penalties awarded in lawsuits to punish the defendant for particularly harmful behavior and deter future misconduct.

Can you give me an example of when punitive damages might be awarded?

Sure! They are often awarded in cases of gross negligence or intentional wrongdoing, like a company knowingly selling a dangerous product.

How do punitive damages differ from compensatory damages?

Compensatory damages are meant to reimburse the victim for actual losses, while punitive damages are intended to punish the wrongdoer.

Are there limits to how much punitive damages can be awarded?

Yes, many jurisdictions have caps on punitive damages, often based on a multiple of the compensatory damages awarded.

What factors do courts consider when deciding on punitive damages?

Courts typically consider the severity of the wrongdoing, the defendant's financial status, and the need to deter similar conduct.