Punitive damages, also known as exemplary damages, are one of the three major types of damages that can be awarded in a lawsuit, along with specific and general compensatory damages.
Unlike compensatory damages, which are intended to reimburse injured victims for their economic losses and their pain and suffering, punitive damages are sometimes imposed in a suit when the defendant has exercised gross negligence and lack of care for the safety of other people. The effect sought by punitive damages is to make an example out of the defendant.
