What are Punitive Damages?

[imran bakht]

What Are Punitive Damages?




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.