What are punitive damages primarily intended to achieve?

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Punitive damages are primarily intended as a form of punishment for the defendant’s reckless, malicious, or grossly negligent behavior. Unlike compensatory damages, which are aimed at making the injured party whole by covering actual losses, punitive damages serve a different purpose. They are designed to deter the defendant and others from engaging in similar conduct in the future by imposing an additional financial penalty. This aspect of punitive damages emphasizes accountability and serves as a warning to discourage particularly harmful actions.

In this context, the other options reflect different aspects of legal and financial recoveries that do not align with the primary goal of punitive damages. For instance, compensatory payments are focused on actual damages incurred, while rewards for legal expenses relate to a plaintiff's costs during the legal process. Similarly, the notion of including incentives for settling claims does not capture the underlying principle of punitive damages, which is to impose a punitive measure rather than to create a motivational context for settlement.