Law Society of Ontario (LSO) Paralegal Practice Exam

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Punitive damages are intended primarily to serve what function?

Compensate the victim for their losses
Recover specific costs incurred by the case
Punish defendants for their wrongful actions
Provide nominal acknowledgment of rights violations

The correct answer is: Punish defendants for their wrongful actions

Punitive damages are primarily designed to punish defendants for particularly wrongful or egregious actions and to deter others from engaging in similar conduct. This type of damage goes beyond simply compensating the victim for their actual losses or expenses; instead, it serves a broader purpose of addressing behavior that is deemed unacceptable in society. By imposing punitive damages, courts send a strong message that certain actions will not be tolerated, helping to uphold legal and ethical standards. In contrast, compensatory damages focus solely on reimbursing the victim for specific losses, while the recovery of specific costs incurred refers to legal fees or direct expenses, which does not encompass the broader punitive goal of the damages. Additionally, providing nominal damages is meant only to acknowledge a rights violation without offering significant compensation, thus lacking the deterrent intention of punitive damages.