What are punitive damages designed to achieve?

Punitive damages serve a distinct purpose in the legal system, specifically aimed at imposing penalties on the defendant rather than merely compensating the plaintiff for losses. The primary goal of punitive damages is to punish a defendant whose behavior is deemed especially harmful or egregious, and to deter both the defendant and others from engaging in similar misconduct in the future.

These damages are not intended to remedy financial losses suffered by the plaintiff, which is the role of compensatory damages. They are also not designed to provide any tax benefits or to resolve cases swiftly without a trial. Instead, punitive damages reflect society's condemnation of particularly reckless or intentional actions that violate community standards or legal obligations, thereby reinforcing societal norms by discouraging repeated or future misconduct. This makes the selected answer truly aligned with the intent of punitive damages in the legal framework.