What type of damages is designed to deter gross wrongdoing by serving as an example to others?

Punitive and exemplary damages are intended to serve as a punishment for gross misconduct and to deter similar actions in the future. These types of damages go beyond simply compensating the victim for their losses; instead, they are meant to act as a warning to others that such behavior will not be tolerated. The idea is to impose a financial penalty that reflects the severity of the wrongdoing, thereby discouraging the perpetrator and others from engaging in similar acts.

This type of damages is often applied in cases where the defendant's actions are found to be particularly egregious or reckless, indicating a disregard for the safety or rights of others. The aim is to reinforce societal standards by ensuring that there are consequences for particularly harmful behavior, thus promoting greater accountability.

Compensatory damages, different from punitive damages, are intended solely to reimburse the victim for actual losses suffered, such as medical bills or lost wages. Nominal damages are typically awarded in cases where a legal right has been violated but no substantial harm or financial loss occurred, while special damages concern particular, quantifiable losses, such as those resulting from lost profits or specific out-of-pocket expenses. Each of these types serves different purposes within the legal framework but does not carry the same deterrent intent as punitive