What distinguishes punitive damages from compensatory damages?

Punitive damages are distinct because their primary purpose is to punish the wrongdoer and deter similar conduct in the future. This contrasts with compensatory damages, which are designed to compensate the injured party for losses they have suffered, such as medical expenses, lost wages, or pain and suffering. Punitive damages come into play when a defendant's conduct is found to be particularly egregious or willful, indicating a need for a stronger response than mere compensation.

The concept of punishing and deterring wrongful behavior underscores the rationale behind awarding punitive damages, aiming to send a message that certain conduct is unacceptable and must be condemned. This aspect highlights the punitive nature of these damages, setting them apart from compensatory damages, which focus solely on making the victim whole.

Options that suggest punitive damages relate to economic losses, apply only in breach of contract cases, or are limited to individuals would mischaracterize the fundamental nature of these damages and their intended purpose within tort law.