Also known as exemplary damages. The amount of money awarded to the claimant in civil litigation to punish the wrongdoer and to deter the wrongdoer and others from engaging in unlawful conduct in the future. Punitive damages must bear a reasonable relationship to the harm caused by the wrongdoer's actions, and are reserved only for situations in which the wrongdoer acted intentionally, recklessly, or with gross negligence in causing the claimant's harm. Courts award punitive damages to a claimant in addition to compensatory damages. A party generally may not recover punitive damages for a breach of contract. Some employment statutes cap the amount of punitive damages a plaintiff can recover.

For information on punitive damages in the product liability context, see Practice Note, Product Liability Claims, Defenses and Remedies: Punitive Damages. For information on punitive damages in arbitration, see Practice Note, Punitive Damages in US Arbitration. For information on punitive damages in employment discrimination cases, see Practice Note, Remedies: Punitive and Liquidated Damages in Employment Discrimination Cases.