What are damages called that may be awarded in a lawsuit when the defendant acted intentionally or recklessly?

Punitive damages are specifically designed to punish a defendant for particularly egregious behavior and to deter others from engaging in similar conduct. When a defendant has acted intentionally or with reckless disregard for the safety and rights of others, the court may impose punitive damages in addition to any compensatory damages awarded for losses suffered by the plaintiff.

The purpose of punitive damages is not to compensate the victim for actual losses but rather to serve as a form of punishment for the defendant and to signal to society that such behavior is unacceptable. This makes punitive damages distinct from compensatory damages, which are meant to reimburse the plaintiff for actual harm suffered, and nominal damages, which are typically awarded when a legal wrong has occurred but no actual harm can be quantified. Exemplary damages, while sometimes used interchangeably with punitive damages, specifically refer to damages awarded with the intent of setting an example or making a statement about the behavior in question, but the standard legal term remains punitive damages.