What type of damages are designed to punish a defendant and deter similar future conduct?

Punitive damages are specifically intended to punish a defendant for their wrongful conduct and serve as a deterrent to prevent similar actions in the future. In cases where a defendant's behavior is found to be particularly egregious, malicious, or reckless, the court may award punitive damages in addition to compensatory damages, which are meant to compensate the plaintiff for their actual losses. The purpose of punitive damages is not to provide compensation for harm suffered but rather to send a clear message about the unacceptable nature of the behavior and to discourage the defendant and others from engaging in similar conduct. This distinguishes punitive damages from other types such as compensatory, which aim to restore the injured party to their original position, or nominal damages, which are often a small amount awarded when a legal wrong has occurred but no substantial harm was done. Consequential damages relate to losses that occur as a direct result of the wrongful act.