What are actual damages?

Actual damages refer specifically to compensatory damages that are intended to restore the injured party to the position they were in prior to the harm. This type of damage directly correlates with the tangible losses that a plaintiff has experienced, which may include medical expenses, lost wages, and other measurable economic impacts resulting from the defendant's actions.

The focus on compensatory rather than punitive aspects is essential here. Actual damages aim to make the plaintiff whole, rather than punish the wrongdoer, as seen in punitive damages. In cases of statutory damages, a predefined amount set by law is awarded regardless of the actual damages incurred, and nominal damages are often awarded in situations where a legal wrong occurred, but no substantial loss can be demonstrated. Thus, the definition of actual damages aligns clearly with the concept of compensatory damages intended to directly offset the plaintiff's losses.