What is the purpose of punitive damages?

Punitive damages are specifically designed to serve as a deterrent against future unlawful behavior. This type of financial compensation is not aimed at reimbursing the victim for direct losses, but rather to punish the wrongdoer for particularly egregious or reckless conduct and to discourage both the defendant and others in society from engaging in similar actions in the future. By imposing significant monetary penalties, the legal system seeks to promote public safety and reinforce social norms, ultimately encouraging compliance with the law.

In contrast, other options focus on different aspects of the legal process, such as providing relief, incentivizing settlements, or covering costs, which do not align with the primary objective of punitive damages. These elements may be relevant in different contexts but do not capture the essence of why punitive damages are awarded.