Compensatory damages are a type of legal remedy sought in situations where an individual or company has suffered loss or harm due to the actions of another. The spelling of "compensatory damages" can be broken down using IPA phonetic transcription, with the stress falling on the second syllable: kəmˈpɛnsəˌtɔri ˈdæmədʒəz. This term is commonly used in civil lawsuits and is often sought alongside other forms of damages, including punitive damages and nominal damages.
Compensatory damages refer to a monetary award granted to a person who has sustained a financial loss or suffered injury or damage as a result of another party's wrongful conduct or negligence. These damages are designed to compensate the injured party for the actual harm suffered and help restore them to the position they were in before the incident occurred.
Compensatory damages are intended to cover various types of losses, including both economic and non-economic damages. Economic damages typically include medical expenses, property damage, lost wages, and rehabilitation costs. Non-economic damages, on the other hand, may encompass aspects such as pain and suffering, emotional distress, loss of consortium, or loss of enjoyment of life.
The purpose of compensatory damages is to provide fair and just compensation to the injured party, thereby attempting to restore their financial situation and alleviate the harm caused. They are calculated based on the actual harm suffered and the extent to which it can be measured. In some cases, proving the exact value of a loss can be complicated, requiring expert witnesses or supporting documentation to help establish the amount of compensation.
It is important to note that compensatory damages differ from punitive damages, which are awarded not to compensate the victim, but rather to punish the wrongdoer and deter others from engaging in similar behavior.
The word "compensatory" comes from the Latin word "compensare", which means "to balance" or "to weigh against". "Damages" comes from the Latin word "damnum", which translates to "harm" or "loss". When combined, "compensatory damages" refers to the monetary amount awarded to a person as compensation for the harm, loss, or injury they have suffered.