Exemplary damages, also known as punitive damages, are extra money awarded on top of your regular compensation that is specifically designed to punish the defendant for particularly reckless, intentional, or outrageous behavior. Unlike regular damages that are meant to compensate you for your actual losses, exemplary damages serve as punishment for the wrongdoer and as a warning to others not to engage in similar dangerous conduct. These damages are only awarded in cases where the defendant's actions went far beyond ordinary negligence and showed a deliberate disregard for the safety of others.
Common situations where exemplary damages might be awarded include drunk driving accidents, cases where someone intentionally caused harm, situations involving gross negligence like a trucking company knowingly allowing unsafe drivers to operate their vehicles, or when a company continued selling a dangerous product after learning it was harming people. The amount of exemplary damages often depends on the defendant's wealth and the egregiousness of their conduct - the goal is to impose a financial penalty significant enough to actually deter future bad behavior. However, many states have limits on exemplary damages or require clear and convincing evidence of exceptional misconduct before they can be awarded.
