What is "exemplary damages"

Damage \Dam"age\ (d[a^]m"[asl]j; 48), n. [OF. damage, domage, F. dommage, fr. assumed LL. damnaticum, from L. damnum damage. See Damn.]

1. Injury or harm to person, property, or reputation; an inflicted loss of value; detriment; hurt; mischief.

   He that sendeth a message by the hand of a fool cutteth off the feet and drinketh damage.
   --Prov. xxvi. 6.

   Great errors and absurdities many commit for want of a friend to tell them of them, to the great damage both of their fame and fortune.
   --Bacon.

2. pl. (Law) The estimated reparation in money for detriment or injury sustained; a compensation, recompense, or satisfaction to one party, for a wrong or injury actually done to him by another.

   Note: In common-law actions, the jury are the proper judges of damages.

   Consequential damage. See under Consequential.

   Exemplary damages (Law), damages imposed by way of example to others. Similar in purpose to vindictive damages, below.

   Nominal damages (Law), those given for a violation of a right where no actual loss has accrued.

   vindictive damages or punitive damages, those given specially for the punishment of the wrongdoer.

   Syn: Mischief; injury; harm; hurt; detriment; evil; ill. See Mischief.

Exemplary \Ex"em*pla*ry\, a. [L. exemplaris, fr. exemplar: cf. F. exemplaire. See Exemplar.]

1. Serving as a pattern; deserving to be proposed for imitation; commendable; as, an exemplary person; exemplary conduct.

   [Bishops'] lives and doctrines ought to be exemplary.
   --Bacon.

2. Serving as a warning; monitory; as, exemplary justice, punishment, or damages.

3. Illustrating as the proof of a thing.
   --Fuller.

   Exemplary damages. (Law) See under Damage.

n. (law) compensation in excess of actual damages (a form of punishment awarded in cases of malicious or willful misconduct) [syn: punitive damages, smart money]