What legal term refers to compensation awarded to a plaintiff beyond actual damages, meant to punish the defendant?

When a court awards a plaintiff compensation that goes beyond simply covering their losses, aiming instead to penalize the defendant for particularly egregious conduct, that compensation is known as punitive damages. These damages serve a dual purpose: to punish the wrongdoer for their malicious, reckless, or oppressive actions, and to deter both the defendant and others from engaging in similar behavior in the future. Unlike compensatory damages, which are intended to make the plaintiff "whole" again by covering medical bills, lost wages, or property damage, punitive damages are not tied to the actual harm suffered by the plaintiff.

The concept of punitive damages has roots in ancient legal systems, with early forms appearing in the Code of Hammurabi and Roman law. In modern common law systems, they are typically awarded in cases where the defendant's conduct demonstrates a willful disregard for the rights or safety of others, or involves fraud or malice. For instance, if a company knowingly sells a dangerous product, or an individual intentionally commits a violent act, a jury might award punitive damages in addition to any compensatory damages. The amount of punitive damages is often left to the discretion of the jury, who will consider factors such as the severity of the defendant's misconduct, the harm caused, and the defendant's financial resources. These awards are often subject to constitutional limits to ensure they are not excessive.