What Are Compensatory Damages?

The legal dictionary defines compensatory damages as “damages recovered in payment for actual injury or economic loss.” The money awarded by a judge or jury for compensatory damages is intended to cover losses that are the result of the unlawful conduct or negligent behavior of a person or corporation. Compensatory damages should not be confused with punitive damages, which punish a person or organization financially for reckless behavior.

In most cases, the amount of compensatory damages can be easily calculated. If your car is damaged in an accident, you can recover the amount of money required to fix it. If you were injured in the accident, you are also permitted to recover the medical costs for your treatment and you can be reimbursed for any time you miss from work. These are termed special damages and are usually easily quantifiable. It gets more complicated when you consider an amount for general damages.

General damages fall under the umbrella of compensatory damages but are much more subjective than the special damages which are awarded. General damages apply to amounts of money that can be given for pain and suffering or a future loss that is the result of the accident. For example, you could be compensated for a disfiguring scar that was caused by someone else’s actions or the crippling effect of an injury.

There are a number of examples of million-dollar jury awards for pain and suffering, prompting calls for tort reform across the United States. Critics say that huge jury awards have driven up medical costs because doctors are paying higher premiums for malpractice insurance. Many states have taken action to limit awards for pain and suffering, leaving legal groups to object. Plaintiffs complain that in states with limits on jury awards it has become difficult to find attorneys who are willing to take their case. Those who argue against the limits say it should be up to a jury to decide how much should be paid out, not lawmakers. Each case is different according to legal rights groups and they say putting arbitrary limits on pain and suffering is not fair.

Illinois injury attorney Gary D. McCallister has experience litigating a range of personal injury cases, including medical malpractice, nursing home abuse, brain injury, product liability, defective drugs, and wrongful death claims.