{"id":369047,"date":"2016-04-04T10:47:07","date_gmt":"2016-04-04T15:47:07","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/legal-system\/what-are-compensatory-damages.html"},"modified":"2024-05-06T17:51:05","modified_gmt":"2024-05-06T22:51:05","slug":"what-are-compensatory-damages","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/legal-system\/what-are-compensatory-damages.html","title":{"rendered":"What Are Compensatory Damages?"},"content":{"rendered":"\n
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What Are Compensatory Damages?<\/h1>\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Learning about the different forms of compensation in lawsuits is essential for anyone involved in a legal action. Compensatory damages are one of these forms. It has a distinct purpose and application compared to other types of damages. Compensatory damage is designed to reimburse the plaintiff for the losses incurred due to their injury. It also covers the monetary value and various costs resulting from the defendant’s actions.<\/p>\r\n

This article provides a comprehensive overview of compensatory damages. It details its function and the costs that it can cover. It also differentiates it from other types of damages, such as punitive damages. By looking at the real-life cases that the court decided, you’ll also have an idea of how these legal principles apply.<\/p>\r\n

What Is the Difference Between Compensatory and Punitive Damages?<\/h2>\r\n

If you win a lawsuit, you may be entitled to money. This is known in the legal world as damages<\/a>. In many cases, damages come in two major categories: punitive and compensatory.<\/p>\r\n

Punitive damages seek to punish the person for their wrongdoing. The court awards punitive damages<\/a> separately from actual damages in an event. In general, the courts only award punitive damages when they determine that the defendant acted in a harmful manner. This type of damages is also called exemplary damages, which are damages that are more than what is caused by the plaintiff.<\/p>\r\n

In contrast, the court awards compensatory damages to the plaintiff to cover the actual losses the injury victim incurred due to the defendant’s actions. Compared to punitive damages, compensatory damages mainly focus on the actual harm the plaintiff suffered. They don’t seek to punish the defendant.<\/p>\r\n

What Kinds of Costs Can Be Compensatory Damages?<\/h2>\r\n

Compensatory damages can cover economic and noneconomic damages incurred by the plaintiff resulting from the defendant’s wrongful actions. These damages aim to restore the injured party to their previous position.<\/p>\r\n

Types of Compensatory Damages<\/h3>\r\n

The following are some types of compensatory damages that the plaintiff can claim against the defendant:<\/p>\r\n