Friday, 30 October 2015

Types of Damages

 Types of Damages

In civil trials, a verdict will often require the defendant to pay monetary damages to the plaintiff.  The damages are divided into two types, compensatory and punitive.  The purpose of compensatory damages is to make the plaintiff "whole," by paying him enough money to make up for whatever wrong was done to him.  Compensatory damages include medical expenses, lost wages and income, payment for pain and suffering, etc.  The purpose of punitive damages is to punish the defendant, thereby providing an incentive for others to behave properly.
Some have argued that punitive damages are unjustified, because compensatory damages are (in theory) sufficient to make up for whatever the defendant has done wrong.  In response, it should be noted that there is less than 100% certainty of being held liable for one's harmful acts (because they may never be discovered, or the victims may choose not to litigate), so an additional punishment may be needed to provide sufficient incentive not to commit negligent acts in the first place. 

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