WHAT IS PUNITIVE DAMGES?

Punitive damages, also known as exemplary damages, are damages above and beyone the monetary loss suffered by the claimant, which are designed not to reimburse the wronged party, but to punish the wrongdoer.  As a general rule they are not available for breach of contract claims, and are only awarded for the most egregious torts.  Thus, for example, if you take a sledgehammer to my car because you're mad at me, the compensatory damages I can recover are the lesser of the cost or repairing my car, or the loss in value to the car.  However, because your actions were deliberate and egregious, I may also be able to collect additional damages unrelated to the damage done to my car, as a means of punishing you and deterring you, and others, from engaging in such wrongful conduct in the future.