What does the term "exemplary damages" refer to in Nevada law?

The term "exemplary damages" in Nevada law refers specifically to punitive damages that are intended to deter future wrongdoing. These damages go beyond merely compensating the plaintiff for their actual losses, as they are designed to punish the defendant for particularly egregious or reckless behavior and to serve as a warning to others in society who might engage in similar conduct.

In the context of exemplary damages, the focus is on the behavior of the defendant rather than the losses suffered by the victim. This distinction is crucial because punitive damages are awarded in addition to any compensatory damages the plaintiff may receive for their actual losses, such as economic harm or emotional suffering. Therefore, the key understanding of exemplary damages is their purpose: they are not solely about compensation but rather about reinforcing societal norms and discouraging wrongful behavior.

While other options focus on different types of damages or penalties, none capture the essence of what exemplary damages are designed to achieve in the legal framework.