What are compensatory damages primarily awarded for?

Compensatory damages are primarily awarded to cover actual losses incurred by a victim. This type of damages aims to reimburse the injured party for the financial losses they have suffered as a direct result of another party's actions. These losses can include medical expenses, lost wages, property damage, and other costs arising from the incident in question.

Compensatory damages function to make the victim whole again, financially speaking, by reflecting the actual economic harm they have experienced. The focus is not on punishing the wrongdoer or deterring future misconduct, but rather on addressing the specific financial impacts the victim has faced due to the defendant's actions. This is a crucial legal principle that seeks to provide justice by ensuring that those harmed receive appropriate compensation for their losses.