The goal of exemplary damages, also called punitive damages, is to punish and make an example of a civil defendant for engaging in malicious conduct against a person or class of people
Suppose the plaintiff in a lawsuit proves that the defendant acted maliciously or with fraud, the court might permit the jury to award punitive damages, Also called exemplary damages. Punitive damages are sometimes awarded at trial in sexual harassment, wrongful termination, whistleblower, and drug product liability cases.
The public policy goal behind an award of punitive damages is to punish a civil defendant and make an example out of the defendant so others similarly situated might be dissuaded from engaging in such conduct.
Exemplary damages are over and above those damages that are awarded to the plaintiff for compensatory relief.