What type of damages may exceed the actual cost of the harm caused to a person?

Punitive damages are designed not to compensate the victim for actual harm but to punish the wrongdoer for particularly egregious conduct and deter similar behavior in the future. These damages can exceed the actual cost of harm, as they serve a broader purpose of societal protection. In cases where the defendant's actions are found to be malicious, reckless, or grossly negligent, punitive damages can be awarded in addition to compensatory damages, which are meant to cover the actual losses suffered by the plaintiff.

In contrast, compensatory damages specifically aim to restore the injured party to their pre-injury condition by covering economic losses. General damages refer to non-economic losses, such as pain and suffering, but still focus on compensating the actual harm experienced. Nominal damages are awarded when a legal wrong has occurred but no substantial harm was done, typically representing a small amount to recognize the violation of rights without relating to the actual damages suffered.