What is the difference between actual and exemplary damages?

Asked by: Ola Green  |  Last update: August 23, 2022
Score: 4.3/5 (19 votes)

A decision by a judge to grant punitive damages in a civil case is often a contentious issue. This may be in part because punitive damages have to be paid by the defendant on top of any actual damages that the court awards to the plaintiff. An alternative name for them is exemplary damages.

What is an example of exemplary damages?

Punitive damages are also called “exemplary damages,” which are damages assessed in the legal process to punish a defendant for negligence. The defendant is usually a company or other large entity. Examples would medical malpractice cases or product liability cases.

What are considered actual damages?

Actual damages refer to the financial amount that is paid to a victim that suffered loss that can be calculated. Actual damages are often known as real damages or, legally, as compensatory damages. These are damages that arose from the neglect or mistake of another party.

What is the legal definition of exemplary damages?

Punitive damages go beyond compensating the aggrieved party and are specifically designed to punish defendants whose conduct is considered grossly negligent or intentional. They are also called exemplary damages when they are intended to set an example to deter others from committing similar acts.

What is the difference between actual and special damages?

In tort law, special damages are damages like car dents or medical expenses that can actually be ascertained, and they are contrasted with general damages, which refer to damages for things like intentional infliction of emotional distress which do not have a set monetary cost.

Consequential Damages Versus Actual Damages

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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.

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.

Why are exemplary damages awarded?

Exemplary damages could be awarded in an action of tort where the defendant has not only committed a legal wrong but has also behaved in an outrageous and insulting manner.

What is the difference between aggravated and exemplary damages?

Aggravated damages: awarded to a plaintiff who suffers increased distress as a result of the manner in which a defendant behaves when committing the wrong or thereafter. 5. Exemplary damages: awarded to mark the court's disapproval of the conduct of the defendant and to deter its repetition by the defendant or others.

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.

How do you prove actual damages?

To be awarded actual compensatory damages, the plaintiff must prove that the losses suffered equate to a monetary value that a judge or jury can determine. An accident victim can also be compensated for general damages.

What are the 5 types of damages?

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

What are the 3 types of compensatory damages?

The three types of damages are economic damages, non-economic damages, and punitive damages.

Are exemplary damages taxable?

On the issue of whether damages awarded in a civil case for murder is part of the taxable income of the heirs of the decedent, the BIR clarified that, as a general rule, compensatory damages, actual damages, moral damages, exemplary damages, attorney's fees, and the cost of the suit, are excluded from gross income of ...

What is the meaning of ordinary damage?

Ordinary Damages or General Damages

Damages that arise in the ordinary course of events from the breach of contract are called ordinary damages. Damages arising out of natural and probable consequences of breach of contract are also considered an ordinary damage.

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 different types of damages?

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

What are the different kinds of damages in the civil code?

In Philippine laws, there are six kinds of damages, namely:
  • Actual or compensatory Damages.
  • Moral Damages.
  • Exemplary or corrective Damages.
  • Liquidated Damages.
  • Nominal Damages.
  • Temperate or moderate Damages.

What kind of damages are awarded under tort?

There are four kinds of damages; contemptuous; nominal; sustainable; and exemplary. Contemptuous damages are awarded when it is considered that an action should never have been brought.

What are punitive damages vs 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.

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 treble damages mean?

Treble damages, by statute, permit the court to triple the amount of the actual or compensatory damages awarded to a prevailing plaintiff. When a plaintiff is awarded treble damages in California, the question is whether an insurance company is required to pay those damages.

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 the most common type of damages awarded by a court?

Compensatory damages: This is the most common breach of contract remedy.

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.