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why are you talking about punitive damages?
did you mean something else? because punitive damages are not for compensation of the harm done, but rather damages meant to elicit changes in behavior.
For example, let's say my cell company regulary jacks people around on their bills. I sue for $300 (the excess charges) in damages and 1 million dollars in punitive damages. The million is simply to make my cell phone company think twice before jacking people's bills anymore, not on the basis of any real damages I've incurred from them.
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