Punitive damages

Punitive damages (also called exemplary damages) are damages not awarded in order to compensate a plaintiff, but in order to reform or deter the defendant and similar persons from pursuing a course of action such as that which damaged the plaintiff.

Punitive damages are often awarded where compensatory damages are deemed an inadequate remedy. The court may impose them to prevent under-compensation of a plaintiff, to allow redress for undetectable torts and taking some strain away from the criminal justice system.

Because they usually compensate the plaintiff in excess of the plaintiff's provable injuries, punitive damages are awarded only in special cases, usually under tort law or intellectual property laws, where the defendant's conduct was wilful. Punitive damages generally cannot be awarded in contract disputes.

Also, punitive damages can be excessive as compared to the compensatory damages. There is no certain limits or ratio of punitive damages to compensatory damages.