Which type of damages is intended to punish reckless, malicious, or intentional conduct?

• A. Compensatory
• B. Nominal
• C. Punitive
• D. Consequential

Answer: (C)

Punitive damages are amounts awarded not to compensate the plaintiff for actual losses, but to punish the wrongdoer and deter similar conduct in the future. They are used when the defendant’s actions are reckless, malicious, or intentional, showing a flagrant disregard for the safety or rights of others. In a medical context, this might apply if a clinician or organization knowingly ignores patient safety or engages in fraudulent or deliberately harmful behavior. The key idea is punishment and deterrence, not reimbursement of costs or losses.

In contrast, compensatory damages cover actual losses like medical bills, lost wages, and pain and suffering. Nominal damages are a token acknowledgment of wrongdoing when no substantial injury or loss occurred. Consequential damages refer to additional harms that flow from the breach or conduct, not to punishment.