@cicerone imposter,
Uh, no.
Actually punitive damages can occur either via the court or a jury. In Insider Trading cases, the penalty is treble damages. Not exactly punitives but definitely not compensatory.
The $$ is awarded to the plaintiff who may dispose of it as desired. Whether that's to save the children or fly to Aruba is the plaintiff's business and not the court's. The court does not have control over this $$ and cannot direct the expenditure (or saving, or destruction, or making it into origami cranes if the plaintiff so desires) thereof.