What does compensatory damages specifically aim to cover?

Compensatory damages are specifically designed to cover the actual losses that a person has suffered as a result of another party’s actions. This includes tangible losses such as medical expenses, lost wages, and property damage. The purpose of compensatory damages is to restore the injured party to the position they would have been in had the injury or loss not occurred, effectively providing financial compensation for the direct impact of the wrongdoing. This can include both economic and non-economic damages, which often encompass emotional distress resulting from the incident.

In this context, while punitive measures aim to punish the offender and deter future misconduct, and legal fees pertain to the costs incurred during litigation, these do not fall under the umbrella of compensatory damages. Future earnings lost due to an incident can be a factor in a broader analysis of damages but are generally encompassed within the actual losses that compensatory damages seek to remedy, reinforcing the understanding that the primary objective is to address the specific, quantifiable losses stemming from an injury or property loss.