In what context are punitive damages typically awarded?

Punitive damages are awarded in civil courts specifically to serve as a deterrent against particularly harmful or egregious conduct. Their main purpose is to punish the wrongdoer for actions that are found to be malicious, reckless, or grossly negligent and to discourage similar behavior in the future. This differs from compensatory damages, which are intended to reimburse the victim for actual losses incurred as a result of the wrongdoing. In civil cases, the focus is often on providing justice to the injured party while also influencing the behavior of others to promote societal norms and regulations. This is why awarding punitive damages in civil courts aligns with the goal of not only compensating victims but also promoting public policy by discouraging awful behavior from occurring again. In contrast, punitive damages do not apply to criminal cases, administrative hearings, or informal settlements, as those contexts have different objectives and frameworks for resolving disputes and administering justice.