Punitive/ Exemplary Damages

Punitive damages are also known as “exemplary damages”.

Punitive damages are damages awarded over and above “compensatory damages (also known as “actual damages)” for punishment. If the act causing the injury was committed out of negligence or malice, punitive damages serve not only as a punishment, but as an example or deterrent to others. It also helps put the injured party on a level playing field. For instance, an individual who loses a leg when hit by a drunk driver cannot be awarded a new leg, but a monetary award can help that person face the resultant obstacles.