Certified Verbatim Reporter (CVR) Practice Exam 2025 - Free Verbatim Reporter Practice Questions and Study Guide

Punitive damages are primarily awarded to punish a defendant for particularly harmful or egregious behavior that goes beyond mere negligence. The purpose of these damages is to deter the defendant and others from engaging in similar conduct in the future. They are not meant to compensate victims for losses or injuries, but rather to serve as a form of societal retribution and to uphold public policy.

In this context, punitive damages can be issued in cases where the defendant’s actions were willfully malicious, reckless, or fraudulent. This distinguishes punitive damages from compensatory damages, which aim to cover actual injuries or losses the plaintiff has sustained. While punitive damages may take into consideration the mental anguish caused by the defendant's conduct, their primary function remains focused on punishment and deterrence rather than compensation.

Thus, the answer correctly identifies the dual purpose of punitive damages: to punish the defendant for wrongful actions and to address the broader implications of those actions on society.