Glossary
Damages awarded beyond compensatory amounts to punish a defendant for willful, malicious, or reckless conduct and to deter similar future conduct.
Punitive damages, also called exemplary damages, are monetary awards in excess of compensatory damages imposed on a defendant whose conduct was found to be malicious, oppressive, fraudulent, or in reckless disregard of others' rights. Constitutional due process limits, including the BMW v. Gore guideposts and the State Farm single-digit ratio guidance, constrain the permissible relationship between punitive and compensatory awards. Many states cap or condition punitive awards through tort reform legislation.