Enjoy! Thus, its worth is assessed at the time when it was destroyed or damaged. The objective of compensatory damages is to make the plaintiff whole again while that of the punitive damages is to “punish” the defendant so he or she does not repeat the same act or behaviour. × No thank you. If you have been injured, you may able recover compensatory and punitive damages. Damages may be: 1) Actual or compensatory; 2) Moral; 3) Nominal; 4) Temperate or moderate; 5) Liquidated; or 6) Exemplary or corrective. Punitive damages seek to punish the person for their wrongdoing. This award does not include punitive damages, which may be awarded when the defendant's actions are especially reckless or malicious. These types of damages are awarded when the courts decide that compensatory damages are not enough to fully compensate the plaintiff for his or her physical damages and pain … Juries in the United States have awarded significant sums of money to compensate for general damages suffered by a plaintiff and many have lobbied to have the law establish a cap on how much can be awarded. As the term suggests, compensatory damages are intended to compensate for the wrong and restore the plaintiff to his or her pre-incident position (e.g., physically, economically, or mentally). Some consider that there are 3 types of damages: You can also consider that there are two main types of damages, instead of three: General damages are non-monetary damages suffered by a person such as embarrassment, loss of enjoyment of life or loss of consortium but represent actual and real damages suffered by a person’s wrongdoing. In contrast, compensatory damages are intended simply to pay the person who was injured. John pays $15,000 to Bob to renovate his kitchen. Damages, in many cases, come in two major categories: punitive and compensatory damages. In a personal injury case, the court can award compensatory damages and punitive damages, yet i n the majority of all cases, the Plaintiff is generally awarded ONLY compensatory damages for their actual losses. Check out these frequently asked questions about the differences in punitive damages and compensatory damages. Compensatory damages, like the name suggests, are intended to compensate the injured party for loss or injury. Economic damages are awarded in order to compensate for the actual financial expense brought by injury. In tort law, many criticize the quantum of general damages the plaintiffs claim particularly as it relates to medical malpractice. Compensatory damages reimburse an accident victim for the tangible and intangible losses he or she suffered because of the at-fault party’s negligence. Actual damages represent a type of compensatory damages. Such damages are intended to help you pay for any expenses you incur as a result of the accident. Compensatory damages are intended to compensate the plaintiff for their loss. If Suzanne suffers a loss of $10,000 to pay for her medical bills, she is considered to have suffered $10,000 in monetary damages. Statutory entitlement 1.1. Disputes over liquidated damages typically center on whether the amount of damages to which the parties stipulated is unreasonably high in comparison with the nonbreaching party's actual loss. If they prevail, they are entitled to compensatory damages. If you have been injured, you may able recover compensatory and punitive damages. Below are some key differences between the two. Actual Compensatory Damages; Actual damages are for an amount no greater than what is necessary to replace the loss you suffered. This reparation is intended to help the plaintiff with any expenses they had to take care of themselves. Some states have adopted laws to legally cap general damages. For example, if someone causes a car accident, and the plaintiff suffers $20,000 worth of damage to their vehicle, then that is what the plaintiff would be entitled to seek in a lawsuit against the errant driver. However, recent cases have tested the limits of this principle. Compensatory damages are monetary damages awarded by a civil court to compensate the plaintiff for damages or injuries suffered as a result of another’s fault, negligence, acts or omissions. The Supreme Court held in Birsdall v. Coolidge, 93 U.S. 64 (1876) that the phrases " compensatory damages " and "actual damages" are identical. 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