What, exactly, are punitive damages? Let’s start with compensatory damages, which a jury usually will determine first in any lawsuit. The plaintiff may receive monies awarded to “make them whole again” after injury. Compensatory damages may include reimbursement for damaged property, medical expenses, lost wages, pain and suffering, and other actual losses. However, a jury may also determine that a defendant’s conduct went beyond plain recklessness or negligence. If jurors believe that evidence shows that the behavior was willful, wanton, or intentionally malicious, a judge may permit them to award punitive damages on top of compensatory damages. Punitive damages are imposed both to punish the defendant for egregious, often near-criminal, actions and to deter the defendant, and others, from acting similarly in the future.

People injured through no fault of their own may receive punitive damages in cases of outrageous misconduct involving civil rights, employment, environmental damage, fraud, health care, insurance, intentional acts, nuisance, personal injury, premises liability, product liability, securities, sexual harassment, and workplace safety.

Many states and special interests want to limit or eliminate punitive damages in legal cases. Reckless, malicious, or irresponsible conduct would be rewarded,
not punished.

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