Compensatory damages compensate rather than punish. They cover economic losses such as medical expenses and lost income, and non-economic losses such as pain, suffering, and loss of enjoyment of life.
The plaintiff must prove both the fact of damage and its amount with reasonable certainty, though mathematical precision is not required for non-economic components.
Alternative Names:
Actual Damages, Make-Whole Damages
Why it Matters?
The economic and non-economic split is where damages disputes concentrate. Economic losses are contestable through billing analysis, vocational evidence, and life care plan critique. Non-economic losses resist that treatment, which is why plaintiff strategy focuses on making them vivid and defense strategy focuses on anchoring them to the proven economic reality.
Frequently Confused with
Related terms
Frequently asked questions
What is required to prove compensatory damages?
Are compensatory damages taxable?
