What is difference between compensatory and punitive damages?
Asked by: Dortha Wyman | Last update: October 23, 2025Score: 4.7/5 (74 votes)
Punitive and compensatory damages are the two categories of damages that may be granted. Punitive damages are meant to penalize the defendant, whereas compensatory damages are meant to make up for actual losses.
What is the difference between actual compensatory and punitive damages?
There are two types of damages that may be awarded: compensatory and punitive damages. Compensatory damages are intended to compensate for actual losses, while punitive damages aim to punish the defendant.
What is an example of compensatory damages?
Examples of compensatory damages include:
Medical bills. Lost wages. Loss of enjoyment of life. Pain and suffering.
What is an example of punitive damages?
A drunk driver going 80 mph in a 35 mph zone causes a devastating accident. Punitive damages would punish this extremely reckless behavior. A surgeon botches a surgery while under the influence of prescription drugs used recreationally. Punitive damages would punish their medical malpractice.
What are the three main elements of compensatory damages?
There are three basic types of compensatory damages: special compensatory damages, general compensatory damages, and wrongful death damages.
What is the difference between compensatory and punitive damages?
Is mental anguish considered punitive damage?
In personal injury cases, pain and suffering refers to the non-economic damage an injury victim may endure. Examples include acute pain, discomfort, mental anguish, loss of enjoyment of life, and emotional trauma associated with the physical injuries sustained.
What is not included in compensatory damages?
This award does not include punitive damages , which may be awarded when the defendant's actions are especially reckless or malicious.
What evidence is needed for punitive damages?
You must present “clear and convincing” evidence to win punitive damages. To meet this burden, you must prove that your claim is substantially more likely to be true than untrue. In medical malpractice cases, you can only request punitive damages if the court permits you to file an amended claim requesting them.
What are examples of punitive punishment?
Examples of disciplinary punishment include: physical punishment, punitive segregation, losing visitation privileges, restricting visitation privileges, monetary restitution, water deprivation, reducing shower privileges and extending sentences.
What type of damages are awarded for pain and suffering?
Damages for personal injury cases related to pain and suffering specifically include compensation for essentially having to “go through” the physical and/or emotional pain and suffering that you otherwise would never have to go through if this injury accident never occurred.
What is another name for compensatory damages?
Compensatory damages compensate a plaintiff for harm, injury, or other losses caused by the tortious conduct of another party. Also called “actual damages,” compensatory damages are the primary relief awarded in a successful tort action.
What is an example of a vindictive damage?
There are two scenarios for awarding vindictive or exemplary damages: Breach of a promise to marry because it causes injury to his/her feelings. Wrongful dishonour of cheque by a banker because it causes loss of reputation and credibility.
Are emotional damages compensatory damages?
Emotional distress is recognized as compensable damage in a California personal injury case. If a victim can prove that he or she suffered emotional distress as an outcome of the accused party's negligence, he or she can recover compensation.
Who determines compensatory damages?
A judge or jury can award any amount they believe is fair and reasonable for accidents. Put simply, there are no limits to the compensatory damages a plaintiff can seek in a California personal injury case. The exception to this rule lies with medical malpractice suits.
What company was punished through compensatory and punitive damages?
On October 4, 2002, a Los Angeles jury awarded $28 billion in punitive damages against tobacco maker Philip Morris — the largest tobacco damages award that had ever been issued in an individual case.
Can punitive damages exceed compensatory damages?
Courts have signaled that, in practice, few awards exceeding a single-digit ratio between punitive and compensatory damages will satisfy due process. By way of guidance, a ratio of 4.41:1 has been upheld with two reprehensibility factors and evidence of egregious conduct present.
How does a judge determine punitive damages?
418, the California Supreme Court articulated 'three guideposts' for courts reviewing punitive damages: “(1) the degree of reprehensibility of the defendant's misconduct; (2) the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and (3) the difference between the ...
What is a real life example of punitive damages?
Individuals can also be ordered to pay punitive damages that injure someone else due to negligent behavior. Examples of this would be drunk driving or distracted driving.
How to win punitive damages?
One must be able to demonstrate that a willful act was committed intentionally, with the knowledge that it would cause harm. This evidence must be clear and convincing in order to support punitive damages as leverage and send a strong message against similar actions in the future.
Under what circumstances will a defendant be liable for punitive damages?
In the case of tort liability , courts may choose to apply punitive damages. However, they will typically only do so if the plaintiff can prove that the defendant engaged in an intentional tort and/or engaged in wanton and willful misconduct .
Which of the following is an example of compensatory damages?
And these are lost wages, medical expenses, out of pocket expenses, co-pays, deductibles, any over-the-counter expenses that you might have, any future wage loss and any loss of future earning capacity.
What is the ratio of punitive damages to compensatory damages?
In a number of cases, the Court has indicated that a 4:1 ratio between punitive and compensatory damages is high enough to lead to a finding of constitutional impropriety and that any ratio of 10:1 or higher is almost certainly unconstitutional.
What is the maximum damage for EEOC?
Limits On Compensatory & Punitive Damages
For employers with 15-100 employees, the limit is $50,000. For employers with 101-200 employees, the limit is $100,000. For employers with 201-500 employees, the limit is $200,000. For employers with more than 500 employees, the limit is $300,000.
What is vindictive damages and examples?
Vindictive damages are awarded when a party breaches the contract and the other party is affected mentally. It is to compensate the mental stress or injury caused to aggrieved party where the injury is caused or increased in the manner the other party acted wrongfully.
What is the difference between punitive and compensatory?
Punitive and compensatory damages are the two categories of damages that may be granted. Punitive damages are meant to penalize the defendant, whereas compensatory damages are meant to make up for actual losses.