Punitive damages may be imposed under the common law or specific statutory provisions when a defendant is found to have caused harm by its reckless, wanton or willful conduct. The idea behind punitive damages is that when people or corporations engage in outrageous civil misconduct, they should be required to pay not only the actual damages their conduct causes, but an additional penalty as punishment and deterrence to them and others.

Punitive damages also often serve to correct the imbalance between the parties, acknowledge the worth of the victim, promote public health and safety, and allow juries to be the voice of the community.