Exemplary damages are also known as which type of damages?

Exemplary damages are indeed commonly referred to as punitive damages. This terminology reflects their purpose, which is to punish the wrongdoer for particularly egregious conduct and deter similar actions in the future. Punitive damages go beyond merely compensating the victim for losses; instead, they serve to address behavior that is considered unacceptable or malicious.

In legal contexts, these damages are awarded when a defendant’s actions exhibit a reckless disregard for the safety or rights of others, hence justifying an amount that exceeds simple restitution. This distinction is crucial in understanding the nature of damages in tort law, especially when considering the scope of compensation and enforcement of ethical standards within legal practices.