What is one characteristic that is NOT true about punitive damages?

Punitive damages serve a very specific purpose in the legal system. Their primary function is to punish the wrongdoer for particularly egregious behavior and deter others from committing similar acts. Therefore, the assertion that punitive damages replace the need for compensatory damages is not accurate.

Compensatory damages are designed to reimburse the injured party for actual losses, such as medical expenses, lost wages, and pain and suffering. Punitive damages, on the other hand, are awarded over and above compensatory damages when the defendant's conduct is found to be especially harmful or reckless. This distinction highlights that while punitive damages can enhance the overall award, they do not substitute for the compensatory component, which remains critical in providing restitution to the injured party.