What constitutes punitive damages?

Punitive damages are financial awards granted in civil lawsuits that go beyond compensatory damages, aiming to punish the defendant for particularly egregious or reckless behavior and deter similar conduct in the future. They are typically awarded when the defendant's actions are found to be willful, malicious, or grossly negligent. Unlike compensatory damages, which reimburse the plaintiff for actual losses, punitive damages focus on the defendant's misconduct and may be influenced by factors such as the severity of the wrongdoing and the defendant's financial status.