What are compensatory damages intended to achieve?

Compensatory damages are designed to reimburse the injured party for actual losses suffered as a result of another’s wrongful conduct. This form of damages aims to "make the plaintiff whole again," meaning that they should receive an amount that restores them to the financial position they were in prior to the injury. This includes compensation for various types of losses, such as medical expenses, lost wages, and pain and suffering.

The primary purpose of compensatory damages is not to punish the wrongdoer or to serve as a deterrent against future misconduct, which would be the role of punitive damages. Additionally, while compensatory damages may incidentally create awareness regarding wrongful actions, they do not serve as a method to provide public notice of any wrongdoing. The focus is solely on addressing the legal and financial impacts on the injured party rather than altering behavior or publicly denouncing actions.