What is compensatory damages and punitive damage?

What is the purpose of compensatory damages?

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.

How are compensatory damages calculated?

Add up the total replacement cost for your items. Add the other costs and fees that you have incurred in prosecuting the lawsuit, including your attorney fees, postage and filing fees. You can also include other losses for which you are entitled to compensation, such as loss of work or loss of lifestyle.

Which of the following injuries are eligible for compensatory damage?

Compensatory damage is awarded in a civil court case where there has been a loss as a result of another party's negligence or unlawful conduct. The claimant must show that a loss occurred and that it was due to the defendant, in order to receive compensatory damages.

How are punitive damages calculated?

Although there is no maximum sum, punitive damages typically do not exceed four times the amount of compensatory damages. For example, if a plaintiff recovers $100,000 in compensatory damages and is awarded punitive damages, they most likely will receive up to $400,000 in punitive damages.

Are compensatory damages taxable?

Taxpayers who receive compensatory damage awards or settlements may have to pay income taxes on their earnings. The general tax rule for compensatory awards is that they are taxable as income unless specifically excluded by the Internal Revenue Code.

What are the types of damages?

What are compensatory damages also known as?

Also known as actual damages. The amount of money awarded to a party in a civil action to compensate for an injury or loss caused by another party's unlawful conduct. The purpose of compensatory damages is to make the claimant "whole," not to punish the wrongdoer.

How do you ask for compensatory damages?

If you want to seek compensatory damages, pull together all the documents you have that relate to any expenses you incurred as a result of the injury or property loss you sustained. Compensatory damages aren't limited solely to costs to replace or repair damaged property or doctor's bills for your injury.

What is the difference between actual and punitive damages?

punitive damages are the two main types of damages awarded in civil court cases. While courts grant actual damages to plaintiffs to compensate them for a loss they have suffered, they impose punitive damages on a defendant to discourage the behavior that led to the defendant being sued in the first place.

What is the difference between general and punitive damages?

General and special damages are compensatory damages, which serve to compensate the plaintiff for economic loss and pain and suffering, attempting to make them whole. Punitive damages are meant to punish the defendant for his or her negligence or recklessness.

Is pain and suffering a punitive damage?

Damages for pain and suffering are a type of compensatory damages. Punitive damages are damages which are assessed against the defendant for egregious misconduct and are intended to punish the defendant and to deter others from similar misconduct.

Who decides the amount of punitive damages?

If the judge decides there is enough evidence, the jury then can consider whether to award punitive damages. The jury may award punitive damages in an amount that is four times the value of compensatory damages in the case or $500,000, whichever is more.

Which of the following is the general goal of compensatory damages?

The goal of compensatory damages is to “make the plaintiff whole.” In other words, an attempt is made to put the person injured in the same position they would have been in without the injury ever occurring. This is generally referred to as the “made whole” rule.

Are punitive damages good?

Punitive damages are sometimes referred to as “exemplary” damages because they also serve as an example to dissuade the defendant from behaving that way in the future, but more so to deter others from engaging in similar conduct. ... This is why punitive damages can be ten times as much as the initial 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 are compensatory damages in civil law?

Compensatory damages, as the name indicates, are intended to compensate a claimant for losses suffered as a result of the other party's (wrongful) conduct. Those losses can be pecuniary (e.g., costs, loss of profit, related expenses) or non-pecuniary (e.g., for pain and suffering, loss of reputation).

Are compensatory damages the same as economic damages?

A plaintiff in a personal injury case whose case goes to trial may be awarded compensatory damages, which are usually some combination of economic damages and non-economic damages. The amount of economic damages awarded may be more or less than that of non-economic damages, depending on the specific aspects of a case.

How is compensation calculated?

Your compensation will be calculated by adding together: General damages - awarded for pain, suffering and loss of amenity (PSLA), and; Special damages - awarded for any financial losses or costs you have incurred.

Are emotional distress damages compensatory?

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

How are damages determined?

The damages to which you are entitled are typically calculated based on the severity of your injuries, the underlying circumstances of the incident in question, and whether the case settles or proceeds to a trial.