What are damages added to a verdict for punishment called?

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Punitive damages refer to additional amounts awarded in a legal judgment as a means of punishment for the defendant and as a deterrent against similar conduct in the future. They are not intended to compensate the plaintiff for a loss but to penalize the defendant for behavior that is found to be especially harmful, willful, or grossly negligent.

For example, in cases involving gross misconduct, such as fraud or malice, punitive damages can serve to convey the seriousness of the misconduct and to discourage others from engaging in similar behavior. This concept is crucial in tort law where the purpose of punitive damages is to maintain public order and deter future violations of rights.

Other types of damages, like compensatory damages, aim to reimburse the plaintiff for actual losses suffered, while actual damages are those directly linked to the loss incurred. Nominal damages recognize a legal right that has been violated without a substantial loss, often leading to a small monetary amount awarded. In contrast, punitive damages focus specifically on punishment and deterrence and do not serve the purpose of compensating the victim.