What distinguishes punitive damages from compensatory damages?

Punitive damages are specifically designed to punish the wrongdoer for their actions and deter similar conduct in the future. They serve a different purpose than compensatory damages, which are intended to compensate the injured party for actual loss or harm suffered due to someone's wrongful actions. Compensatory damages focus on making the injured party "whole," covering things like medical expenses, lost wages, and pain and suffering.

In contrast, punitive damages are not about covering losses but rather about addressing the behavior of the defendant. They are awarded in cases involving particularly egregious or malicious behavior, adding an element of societal condemnation to the legal resolution. This distinguishes punitive damages fundamentally from compensatory damages, which seek to restore rather than punish.

Other options do not capture the essence of punitive damages accurately. For example, punitive damages are not fixed by law; they can vary significantly depending on the circumstances of the case. Additionally, the quantity of compensatory damages being greater does not relate to the distinction of the purpose between the two types. Lastly, the statement that both serve the same legal purpose is fundamentally flawed, as each type of damage serves a unique role in the legal system.