What Are Compensatory Damages?
Compensatory damages are money awarded to an injured party to compensate for damages, injury, or another incurred loss. These damages are typically awarded in civil court cases where loss has occurred due to the negligence or unlawful conduct of another party.
To receive compensatory damages, the plaintiff must prove that a loss occurred and that it was attributable to the defendant. Additionally, the plaintiff must quantify the loss to the satisfaction of the jury or judge.
Key Takeaways
- Compensatory damages represent the money awarded to a plaintiff in a lawsuit.
- This compensation is for civil court cases arising from loss due to negligence or unlawful actions.
- There are two main types: actual and general.
- Actual damages aim to replace what was lost.
- General compensatory damages are more complex as they do not represent a direct monetary cost.
Actual damages provide the monetary amount necessary to replace what was lost and nothing more. Generally, compensatory damages aim to address losses due to damages, injury, or other incurred losses. These differ from punitive and treble damages, which serve different purposes.
Types of Compensatory Damages
Compensatory damages can be classified into two main types: actual and general.
Examples of Actual Compensatory Damages
- Medical and hospital bills
- Medical treatments
- Rehabilitation expenses
- Physical therapy
- Ambulance expenses
- Medicines and prescription drugs
- Nursing home care
- Domestic services
- Medical equipment
- Lost wages or lost employment income
- Increased living expenses
- Property replacement or repair
- Transportation costs
To be awarded actual compensatory damages, the plaintiff must prove that the losses equate to a defined monetary value.
Examples of General Compensatory Damages
General compensatory damages include estimates of loss not involving a direct monetary expenditure. Courts often use methods like the “multiplier” or “per diem” method to calculate these damages:
- Mental anguish
- Disfigurement
- Future medical expenses
- Future lost wages
- Long-term physical pain and suffering
- Loss of consortium
- Inconvenience
- Loss of enjoyment of life
- Loss of opportunity
Differences from Other Types of Damages
Compensatory vs. Punitive Damages
Compensatory damages are designed to cover actual losses, while punitive damages intend to punish the defendant and deter similar actions in the future. Cases involving both can be contentious and drive up insurance costs.
Compensatory vs. Treble Damages
Treble damages, a form of punitive damage, triple the amount of actual or compensatory damages. They are typically applied when a defendant has willfully violated a law to a significant extent.
Additional Terms & Concepts
- Offsetting or Remunerative: Alternative terms for compensatory damages.
- Compensatory Activity: Typically a monetary payment awarded as per legal provisions.
- Three Types of Damages: Economic (actual), non-economic (general), and punitive damages.
- Emotional Distress: General compensatory damages can also cover emotional distress like mental anguish and loss of enjoyment of life.
Conclusion
To be awarded compensatory damages, the plaintiff must convincingly prove the occurrence and extent of their loss. These damages aim to mitigate the negative impacts on a plaintiff’s life due to another party’s negligence or wrongful act. They differ significantly from punitive and treble damages, which seek to punish rather than simply compensate.
Remember, building a robust case with compelling evidence is essential to maximizing the compensatory damages you can receive.
Related Terms: Punitive Damages, Treble Damages, Legal Compensation, Civil Lawsuits, Negligence.
