Punitive damages are legal recompense that a defendant found guilty of committing a wrong or offense is ordered to pay on top of compensatory damages. They are awarded by a court of law not to compensate injured plaintiffs but to punish defendants whose conduct is considered grossly negligent or intentional.

How much money can you get for punitive damages?

For example, in California, several courts have not allowed punitive damages to exceed 10 percent of the defendant's net worth.

Who gets the money from punitive damages?

While the intent and purposes of punitive damages imposed on a company are not designed to compensate the plaintiff, they will receive the monetary award. If punitive damages are ordered by a court, they are essentially punishing the defendant, who must pay the amount of money designated and give it to the plaintiff.