Understanding Compensatory Damages in Lawsuits: Types, Requirements and Calculations

Compensatory Damages

in a civil case, money the court requires a defendant to pay a winning plaintiff to make up for harm caused. This harm can be financial (for example, lost wages, medical expenses, etc.), physical (for example, past, present, and future pain and suffering), and, in some jurisdictions, emotional (fright and shock, anxiety, etc.)

Compensatory damages refer to a type of monetary compensation that a court may award to a plaintiff as a result of a defendant’s wrongdoing. These damages are intended to “compensate” the plaintiff for any losses or damages that they suffered as a result of the defendant’s actions.

Compensatory damages are typically awarded in two main categories: special damages and general damages. Special damages refer to the actual out-of-pocket expenses that the plaintiff incurred as a result of the defendant’s actions, such as medical bills or lost wages. General damages, on the other hand, refer to more intangible losses that the plaintiff may have suffered, such as pain and suffering, emotional distress, or loss of companionship.

To receive compensatory damages, a plaintiff must prove that the defendant’s actions directly caused their losses or damages. The amount of compensation awarded will typically be based on the specific circumstances of the case, including the severity of the damages and the impact they had on the plaintiff’s life.

It’s important to note that compensatory damages are different from punitive damages, which are intended to punish a defendant for particularly egregious actions. While punitive damages are not always awarded, compensatory damages are typically seen as a standard method of addressing the harm caused by a defendant’s wrongdoing.

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