Legal Definition of Punitive damages: An award to a plaintiff beyond actual possible loss. Such damages are by way of punishing the defendant for his act | Learn about the legal definition of punitive damages and how they can impact your business. Punitive damages are meant to punish defendants for harmful actions, not just compensate plaintiffs. Find out how you can avoid these costly legal battles and protect your business’s reputation through ethical behavior and compliance with laws and regulations. Click now to learn more