Compensatory vs Punitive Damages
The distinction between compensatory and punitive damages lies in their objectives. Damages is a term used to describe the remedy or award granted in civil law cases, usually a monetary payment given to someone who has suffered a loss or injury. Damages can be divided into different categories, depending on the nature of the case and the extent of the loss or injury. Two of these subcategories are compensatory and punitive damages. Compensatory damages can be further subdivided into special damages, non-economic damages, and nominal damages. Generally, damages are based on the principle of compensating the aggrieved party for their loss or injury, rather than punishing the wrongdoer. However, punitive damages are an exception to this principle, as they focus on punishing the wrongdoer instead of compensating the victim.
What are Compensatory Damages?
Compensatory damages are a sum of money awarded by a court in a civil case to compensate for a specific loss, detriment, or harm suffered as a result of the wrongful actions of another party. These wrongful acts could include a breach of duty or breach of contract, such as a negligence claim. If a person’s personal and/or property rights are affected by the loss or injury, they can claim compensatory damages. The purpose of compensatory damages is to replace what was lost or compensate for the injury suffered by the plaintiff as a result of the defendant’s actions. Compensatory damages can be awarded for losses such as earnings, profits, medical expenses, property damage, mental and emotional suffering, and pain. To claim compensatory damages, the plaintiff must sufficiently prove that they suffered a loss or injury due to the defendant’s actions.
What are Punitive Damages?
Punitive damages are a monetary payment awarded to an aggrieved party in situations where the wrongdoer’s actions or inaction were malicious, evil, or reckless. Punitive damages are awarded at the court’s discretion, based on the judge’s and/or jury’s determination that the defendant’s conduct or actions were outrageous or malicious. The purpose of awarding punitive damages is to punish the defendant, deter them from committing the same act in the future, and prevent others from committing similar acts. The extent and nature of punitive damages vary depending on the jurisdiction. In the United Kingdom, punitive damages are referred to as exemplary damages.
Punitive damages are intended to reform the wrongdoer and prevent the repetition of their conduct or actions. When awarding punitive damages, the court considers the nature of the defendant’s actions, their state of mind, and the extent of the plaintiff’s loss or injury. In some cases, punitive damages may be awarded in addition to compensatory damages, particularly in wrongful death cases. Examples include death resulting from gross negligence or recklessness, such as drunk driving or medical malpractice.
What is the difference between Compensatory and Punitive Damages?
Compensatory and punitive damages are two distinct types of civil law remedies. Although both derive from the general remedy of damages, their nature and purpose differ.
- Compensatory damages are the more common type of damages, awarded to compensate the plaintiff for a specific loss or injury resulting from the defendant’s actions.
- Compensatory damages can be further divided into subcategories, such as special damages and general damages.
- Compensatory damages are typically awarded for losses like earnings, profit, employment, property damage, medical expenses, mental and emotional suffering, and pain.
- Punitive damages are a monetary payment awarded to a plaintiff in certain circumstances, sometimes in addition to compensatory damages.
- The purpose of awarding punitive damages is to punish the defendant and deter them and others from committing similar acts in the future.
- The decision to award punitive damages is at the court’s discretion, based on the extent of the plaintiff’s loss or injury and the nature of the defendant’s actions.
