What is the Difference Between Compensatory and Punitive Damages?

The difference between compensatory and punitive damages lies in their purpose and the types of losses they cover.

Compensatory Damages are intended to compensate the plaintiff for actual losses incurred due to the defendant's actions. They are sometimes referred to as "actual damages" and can cover various types of losses, such as:

Medical bills and treatments
Property damage
Lost wages
Pain and suffering
Emotional trauma

Compensatory damages are the most common form of compensation awarded in personal injury cases and are meant to make the plaintiff whole again, reimbursing them for the costs associated with their injuries.

Punitive Damages are also known as "exemplary damages" and are less common than compensatory damages. They are awarded in conjunction with compensatory damages, primarily to punish the defendant for gross negligence or particularly egregious behavior, such as drunk driving. The purpose of punitive damages is to deter others from acting in a similar manner and to provide a means of imposing further punishment on the defendant for their actions. Punitive damages are not awarded separately but are included in the overall compensatory damage award.

In summary:

Compensatory damages aim to compensate the plaintiff for actual losses.
Punitive damages aim to punish the defendant for particularly egregious behavior.

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What is the Difference Between Compensatory and Punitive Damages?

Comparative Table: Compensatory vs Punitive Damages

The difference between compensatory and punitive damages lies in their purposes, the types of damages they cover, and the frequency of their awards. Here is a table summarizing the differences between compensatory and punitive damages:

Feature	Compensatory Damages	Punitive Damages
Purpose	To compensate plaintiffs for actual losses, including property damage, medical bills, and lost wages.	To punish the defendant for particularly reckless or malicious actions and deter others from similar misconduct.
Frequency	More common and typically awarded in most personal injury cases.	Less common and awarded in rare cases where the defendant's conduct is extraordinarily egregious.
Types of Damages	Economic damages (e.g., medical bills and ongoing medical expenses) and non-economic damages (e.g., pain and suffering, emotional distress).	Determined based on the severity of the defendant's misconduct and the defendant's financial situation, with the intent to inflict financial pain as punishment.

In summary, compensatory damages aim to make the injured party whole again by financially covering their losses, while punitive damages focus on punishing the wrongdoer and deterring future misconduct.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.