In civil law, what purpose do punitive damages serve?

In civil law, punitive damages are awarded primarily to deter the defendant and others from engaging in similar wrongful behavior in the future. Unlike compensatory damages, which are designed to reimburse the victim for actual losses and harm suffered, punitive damages are intended to serve a broader societal purpose. They aim to send a strong message that certain actions are unacceptable and will result in significant financial consequences, thereby discouraging reckless or malicious conduct.

This deterrent effect is particularly relevant in cases where the defendant's behavior exhibits a high degree of negligence or intentional wrongdoing. The idea is that by imposing an additional financial penalty beyond the compensatory damages, it will motivate not only the defendant to change their conduct but also others in society to consider the potential repercussions of their actions.