What Are Punitive Damages.
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This means that compensatory damages should not be
viewed as punishment, but as an amount that is rightfully
owed to a person for some harm. For example, an
automobile accident may result in a person ordered to pay
compensatory damages. These could include the cost for
the value of the victim’s automobile and her medical bills.
The victim generally should not profit from compensatory
damages. Punitive damages, however, are meant to act in
a completely different manner.

In some cases, guilty parties are required to pay hefty
punitive damages. This money is not designed solely to
compensate the victim. Instead, it is designed to penalize
the guilty party and to persuade him not to act in the same
manner in the future. In some instances, the victim may
only receive a portion of the money that is ordered to be
paid. It is common, however, for victims who receive
punitive damages to receive sums in excess of the amount
of their provable claims.

Punitive damages are awarded in civil lawsuits. This
causes some people to criticize their application, because
normally civil courts are not established to issue
punishment. It has been argued, however, that using such
damages to address behavior acts as a protection for
society.