Compensatory Damages

Compensatory Damages

Compensatory damages are a type of monetary award that a plaintiff receives in a legal case to compensate for losses suffered as a direct result of the defendant’s actions. These damages aim to restore the injured party to the position they would have been in had the harm not occurred, encompassing both economic and non-economic losses.

Compensatory damages can be categorized into two main types:

1. Economic Damages: These refer to quantifiable financial losses that can be calculated accurately. For example, medical expenses due to an injury, lost wages from time off work, property damage costs, and any other out-of-pocket expenses directly resulting from the incident are considered economic damages.

2. Non-Economic Damages: These represent intangible losses that are not easily quantifiable. They may include pain and suffering, emotional distress, loss of companionship, and reduced quality of life. Non-economic damages are often subject to interpretation and can vary widely depending on the circumstances of each case.

For instance, if an individual is injured in a car accident caused by another driver, the injured party may seek compensatory damages for their medical bills (economic) and for the pain and suffering they experience as a result of the accident (non-economic). The ultimate goal of compensatory damages is to ensure that victims receive fair restitution for their losses, promoting justice and accountability in civil litigation.