Question

A defendant is found liable for causing cancer due to the dumping of toxins into the river. The court awards a plaintiff who was sick $5 million in damages, in addition to compensating the plaintiff for all medical costs, lost wages, pain and suffering, and actual losses. The $5 million award is intended to ensure the company never dumps toxins again. The $5 million is an example of what type of damages?

Answer 1

The $5 million is an example of punitive damage

Step-by-step explanation:

This cannot be categorized under compensatory damages because the intent of the fine on the company was never to compensate, but to ensure the company never dumps toxins again. Thus, it is an example of punitive damages. Punitive damages are usually assessed for the sake of punishing the defendant for an atrocious or scandalous conduct and to further put a stop to such scandalous conduct from the defendant and others.