What Are 'Punitive Damages' In A Civil Claim?

Punitive damages or sometimes referred to as exemplary damages are damages that are awarded by the discretion of the court for particularly egregious activity. The purpose of these damages is to discourage further conduct by the violating party. For example, if repaying a customer for fraud was the only damage available, business could build it into their expenses to break the law, punitive damages could award up to nine times the damages to teach the company a lesson.