Define: Exemplary Damages

Exemplary damages, also known as punitive damages or vindictive damages, are monetary awards that a court may impose on a defendant in addition to compensatory damages to punish the defendant for particularly egregious conduct and to deter similar behaviour in the future. Unlike compensatory damages, which aim to compensate the plaintiff for actual losses or harm suffered, exemplary damages serve a broader societal purpose by punishing wrongful conduct and sending a message that certain types of behaviour will not be tolerated. Exemplary damages are typically awarded in cases involving intentional misconduct, fraud, malice, or gross negligence, where the defendant’s actions are deemed especially reprehensible or egregious. The amount of exemplary damages awarded is usually determined by the severity of the defendant’s misconduct, the degree of harm caused, and the defendant’s financial resources. While exemplary damages are primarily punitive in nature, they may also provide some measure of compensation to the plaintiff for intangible losses, such as emotional distress or injury to reputation.

Exemplary damages or punitive damages are compensation given in a personal injury case. They are damages which are greater than the loss suffered by the plaintiff and are used to punish the victim, not provide monetary compensation. The goal of exemplary damages is to warn other individuals and deter them from similar future actions.

Generally, the courts will evaluate the nature of the wrong, the character of the conduct involved, the degree of culpability of the defendant, the situation and the sensibilities of each party, the net worth of the defendant and the extent to which the conduct offends the public sense of justice and propriety before determining exemplary damages.

Exemplary damages are not allowed in all cases, but if they are allowed the plaintiff must generally prove the injury was caused by malice, wicked conduct or aggravated by violence. For example, if the injury claim was for fraud the plaintiff would have to prove malicious defamation, not simply negligence. If a claimant files a car accident claim they may be awarded exemplary damages if they are injured by a driver who intentionally runs them down with malice versus the driver who unintentionally ran a stop sign and caused an injury.

Many types of cases and states have limits to exemplary damages and will only allow exemplary damages to be a certain amount above compensatory damages.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.