Differences Between Compensatory vs. Punitive Damages
You might already have heard the terms “compensatory” and “punitive” damages, but do you know what they mean? You could be entitled to both if you’ve been injured and someone else is to blame. Let’s explore each in detail so that you can better understand your path towards justice and accountability.
What Are Compensatory Damages?
Compensatory damages are what the injured victim (the plaintiff) can recover from the person who hurt them (the defendant) for the financial and personal losses they incurred due to their injuries. Compensatory damages fall into two categories: special damages and general damages.
Special damages, sometimes called actual damages, include compensation for financial losses incurred by the injury. These include medical expenses, repair or replacement of property damage, costs of long-term care for permanent disabilities, and lost wages or future earning capacity. A personal injury plaintiff can prove special damages with documents such as bills, invoices, receipts, and pay stubs/income statements.
General damages compensate the plaintiff for the more intangible harm and loss they suffered because of their injuries. Losses compensated by general damages may include physical pain, emotional distress, PTSD, lost enjoyment or quality of life, and reduced life expectancy. An accident victim’s spouse can also pursue general damages in the form of a loss of consortium claim, which seeks compensation for losing an accident victim’s companionship and intimacy due to their injuries. Unlike special damages, an accident victim cannot prove general damages through financial records. Instead, general damages awards require a subjective evaluation of the value of the negative consequences caused by the injuries, usually using special damages as a jumping-off point.
What Are Punitive Damages?
Punitive damages, also known as exemplary damages, represent a financial award granted to a personal injury plaintiff because the defendant acted with grossly negligent, reckless, or intentional conduct. In a personal injury lawsuit, a jury may award punitive damages when a defendant intentionally harmed or injured the plaintiff or committed egregious conduct that shocks the social conscience.
What Is the Main Difference Between the Two?
The main difference between compensatory and punitive damages involves the purpose behind each type. Compensatory damages, as the name suggests, compensate an injured person for financial and personal losses they suffer due to injuries. On the other hand, the operative word in punitive damages means “involving, inflicting, or aiming at punishment.” They “punish” a defendant for conduct that a jury deems unacceptable. Punitive damages should also deter others from engaging in similar behavior in the future.
Compensatory and punitive damages are also taxed differently. The government does not tax compensatory damages awards but does usually tax punitive damages. Furthermore, while a successful personal injury claim will always result in compensatory damages, juries infrequently award punitive damages, which have a much higher bar to clear.
Contact Our Ohio Injury Attorneys Today
Were you hurt in an accident caused by someone’s reckless actions? If so, you may have the right to recover compensatory and punitive damages from the person to blame for your injuries. Contact Amourgis & Associates, Attorneys at Law, to learn more about the damages your case might merit during a free, no-obligation consultation with our Ohio personal injury lawyers.
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At Amourgis & Associates, Attorneys at Law, we only represent consumers. We fight for regular people who have been seriously hurt in accidents. We fight for people who are being crushed by overwhelming debt and need a fresh start. We fight for individuals and families. Never businesses. Never insurance companies. We are loyal to the consumer.
