Compensatory damages are money awarded to compensate a person for proven loss, injury, or harm.
They are meant to make the injured party whole as far as money can do so.
Why compensatory damages matter
Compensatory damages are a central remedy in tort and contract cases. They can include economic losses and, in some cases, non-economic losses.
The amount depends on proof, causation, legal limits, and the type of claim.
Where compensatory damages appear
Compensatory damages appear in negligence cases, product liability, personal injury, contract disputes, property damage, employment claims, and civil judgments.
Evidence may include bills, records, expert testimony, repair estimates, wage records, and testimony about harm.
How it differs from nearby terms
Compensatory damages compensate for loss. Nominal damages recognize a legal violation without substantial proven loss.
Punitive damages punish or deter especially wrongful conduct rather than simply compensate.
Practical example
A driver negligently causes a crash. The injured person proves medical bills, lost wages, and pain-related harm. The award for those losses is compensatory damages.
Related Terms
Quick check
Question: Are compensatory damages meant to compensate for proven harm?
Answer: Yes. They are designed to compensate for loss, injury, or harm.