Compensatory vs Punitive Damages: The Difference

Compensatory vs punitive damages? There are key differences you should understand if you’re suffering from a personal injury.

Read further on.

Compensatory vs Punitive Damages

Getting injured and deciding to move forward with obtaining compensation means getting yourself thrown into a legal case – with a lot of different procedures, words or phrases, and actions you are unfamiliar with. While retaining legal counsel is always an effective move in being able to understand what is going on in your personal injury case, having a basic understanding of the terms – especially the types of compensation you may seek – is important.

The two types of damages you may seek when you have been injured are compensatory damages and punitive damages. But, what are there? How are they different?

Will they apply to your case? Let’s take a look.

What Are Compensatory Damages?

Compensatory damages are sometimes referred to as actual damages because they refer to actual monetary expenses that you incurred due to your accident. Things that you actually have to pay or have paid. Typically, this includes things like hospital bills and additional medical treatment, as well as wages lost due to missing work as a result of your injuries. It also includes compensation for property damage, too.

It’s not just about the tangible (economic) damages, but the intangible (non-economic) damages are sought also. This means seeking compensation for ways in which your life has been changed due to your mental or emotional distress or the inability to live life as you did before the accident. Everyone understands that there is no amount of money that can make life what it was like before the accident, but getting compensated for these things can make your new life a bit easier.

Compensatory damages that include intangible items don’t have an actual dollar amount that can be applied to them, but your attorney will have ways of determining how much it is worth in your case so that it doesn’t go unacknowledged.

Examples of Compensatory Damages

As discussed above, compensatory damages can include all kinds of costs, actual and not. Below are a few examples:

• Medical expenses (past, present, and future pertaining to your injuries)
• Lost wages (past, present, and future pertaining to your injuries)
• Pain and suffering
• Mental trauma
• Loss of companionship
• Loss of consortium
• Legal fees
• Loss of property
• Emotional distress

The types of compensatory damages sought will, of course, depend on your particular case. 

What Are Punitive Damages?

Punitive damages, sometimes referred to as exemplary damages, are intended to penalize the one who was at-fault in the accident. They are intended to teach that person a lesson – make there be a consequence for their action or behavior – all in an attempt to deter it from happening again in the future.

The courts decide whether or not punitive damages are warranted. You don’t find them in every case, but they are common in the following instances that could potentially put others at risk if the behavior is repeated, such as product liability or medical malpractice cases. In addition, individuals who have been charged with driving under the influence or while distracted may also have to pay these damages.

Punitive damages are meant to be a consequence of dangerous behavior. The money paid by the defendant goes to the victim. That’s right – if awarded, you will receive both compensatory and punitive damages.

Examples of Punitive Damages

You may find punitive damages in the following types of cases:

• Intentional harm was caused to the victim
• Medical malpractice
• Class action cases involving many injured parties
• Personal injury cases involving serious injuries.

Remember, the point of punitive damages is like a punishment for the at-fault party. Depending on the case, judges have been known to use the case as a teaching moment – to help reduce the behavior from the defendant and others in the future.

What’s the Difference?

As you can tell, the biggest difference between compensatory and punitive damages is who they impact. After all, each one is designed to serve a purpose in a personal injury case.  Compensatory damages are meant to offer assistance to the injured party with things like medical bills, lost wages, and others. Punitives, on the other hand, are not for the victim but are instead meant to act as a consequence for the one who caused the accident.

Compensatory damages are much more common than punitive damages, but both can be awarded to the injured party depending on the case. So whether you are injured in a car crash, truck accident, motorcycle accident, bicycle accident, boating accident, due to medical malpractice, the result of a faulty product, or something else, you may be entitled to both compensatory damages and punitive damages.

The Need For an Experienced Attorney

Getting through a personal injury case can be tough on your own. There is a lot involved in putting a successful case together. For instance, you have to worry about proving that the one at fault is really at fault. And, sometimes determining the guilty party is not so easy. For example, if you are injured by a machine at a store – is it the store’s fault, or was the machine manufactured faulty? An experienced attorney can peel apart the layers of your case and find the best way for you to be compensated. Doing this alone – especially when injured – may not go so well.

It is hard to adjust to life after an accident, especially if the injuries are great. However, hiring a personal injury lawyer to lead the way through the case is probably the best step you can take in getting through it. Look for someone who has experience in your type of case and who you feel comfortable and confident in to help you receive the money you deserve. Your attorney will be able to determine the amount of damages you are entitled to – and strive to get you all of it.

Whether it is compensatory damages, punitive damages, or both, just having this money can make life a little easier. It can’t go back to what it was, but it does offer you a little security for the here and now.