What are compensatory and punitive damages?

Asked by: Kenyatta Osinski  |  Last update: August 5, 2022
Score: 4.3/5 (70 votes)

Compensatory damages, like the name suggests, are intended to compensate the injured party for loss or injury. Punitive damages are awarded to punish a wrongdoer.

What are punitive vs compensatory damages?

Compensatory And Punitive Damages

The compensatory damages awarded to plaintiffs are designed to give justice to them after being wronged. Punitive damages are designed to prevent others from being hurt by the same or similar actions.

What are examples of compensatory damages?

Examples of General Compensatory 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.

What do punitive damages mean?

Punitive damages are awarded in addition to actual damages in certain circumstances. Punitive damages are considered punishment and are typically awarded at the court's discretion when the defendant's behavior is found to be especially harmful.

What are the 3 types of compensatory damages?

First, it's critical to understand the two types of compensatory damages.
  • Actual (or Special) Compensatory Damages. ...
  • General Compensatory Damages. ...
  • Calculating Compensatory Damages. ...
  • Punitive Damages.

What is the difference between compensatory and punitive damages?

39 related questions found

What three 3 Things Must a court consider in reviewing punitive damages?

To ensure that unconstitutional punishment is not imposed in the form of punitive damages, the Court has set forth three "guideposts" for courts to consider in reviewing punitive damages awards: "(1) the degree of reprehensibility of the defendant's misconduct; (2) the disparity between the actual or potential harm ...

What is also known as compensatory damages?

Damages: An Overview

(The term "damages" typically includes both categories, but the term, "actual damages" is synonymous with compensatory damages, and excludes punitive damages.) Compensatory damages, like the name suggests, are intended to compensate the injured party for loss or injury.

What are the 3 types of damages?

Types of Damages
  • COMPENSATORY. Compensatory damages are generally the most identifiable and concrete type of damages. ...
  • GENERAL. General damages are sought in conjunction with compensatory damages. ...
  • PUNITIVE. Punitive damages are meant to punish a Defendant for particularly egregious conduct.

Who receives the punitive damages?

Even though punitive damage awards are meant to punish the defendant and benefit society, not the plaintiff, punitive damage awards are paid to the plaintiff in a case.

What are punitive actions?

Punitive describes inflicting a punishment. If someone takes punitive action against you, you'll probably whine and complain — you're in trouble and you're about to get punished.

What do you mean by punitive?

Definition of punitive

: inflicting, involving, or aiming at punishment severe punitive measures.

Are emotional distress damages compensatory?

Emotional distress damages are a subset of what are commonly called “compensatory damages.”

How often are punitive damages awarded?

However, statistical studies by law professors and the Department of Justice have found that punitive damages are only awarded in two percent of civil cases which go to trial, and that the median punitive damage award is between $38,000 and $50,000.

What are the four types of damages?

One of the most common remedies comes in the form of damages, or monetary awards, which are further broken down into four general categories.
  • Compensatory Damages. Compensatory damages (or “actual damages”) are specifically meant to make up for the plaintiff's losses. ...
  • Punitive Damages. ...
  • Liquidation Damages. ...
  • Nominal Damages.

What are the 5 types of damages?

There are six different types of damages: compensatory, incidental, consequential, nominal, liquidated, and (sometimes) punitive.

What's the difference between punitive and damages?

Compensatory damages are given to the injured victim to help pay for medical expenses and other damages created, while punitive damages are meant to penalize the at-fault party. The other main difference between the two is that compensatory damages are much more common as opposed to punitive damages.

How do you quantify punitive damages?

To determine the amount of punitive damages to award, the Book of Approved Jury Instructions (BAJI) states that the jury should consider: (1) The reprehensibility of the conduct of the defendant. (2) The defendant's financial condition and (3) the relationship to actual damages.

Which of the following is a main goal of punitive damages?

While the purpose of punitive damages is to punish the defendant — and set an example — rather than compensate the plaintiff, the plaintiff will still receive all or some of the damages awarded.

What is the difference between damages and compensation?

Damages are awarded for suffering injury while compensation stands on a higher footing. Compensation aims to place the injured party back in a position as if the injury has not taken place by way of pecuniary relief for the caused injury.

What is non punitive damage?

Related Definitions

Non-Compensatory Damages means any and all damages awarded by a court of competent jurisdiction that are penal in nature, including, without limitation, punitive, punitory, exemplary, vindictive, imaginary or presumptive damages. Sample 2.

What qualifies as emotional damages?

Emotional damages can be the mental repercussions of physical wounds such as a brain trauma that leads to forgetfulness, or insecurities caused by permanent scars, or physical reactions that stem from emotionally charged scenarios.

What types of damages are recoverable?

Compensatory Damages. The first type of recoverable losses is called “compensatory damages.” Payment that falls under this category is compensation for the plaintiff's losses and injuries sustained as a result of the accident.

What is the difference between compensatory and punitive damages quizlet?

What is the difference between compensatory and punitive damages? Compensatory damages are intended to compensate the injured for the loss. When a tort is intentional, punitive damages may also be awarded to punish the person who committed the tort. Distinguish between evidence and testimony.

Which of the following is a measure of compensatory damages?

In most states, when a seller of real estate breaches a contract and sells the land to someone else, the measure of compensatory damages is: the difference between the market price and the contract price.

What are the 4 types of damages available for breach of contract?

Today, we're looking into four types of damages you may be able to receive in a breach of contract case.
  • Compensatory damages. ...
  • Punitive damages. ...
  • Nominal damages. ...
  • Liquidated damages.