What Are Compensatory Damages? A compensatory damages example is if a negligent driver hit your 2008 Honda and totaled it; the compensatory damages should equal the market value of your 2008 Honda at the time of its demise, less any scrap or salvage value, and you could be entitled to the fair market value of the vehicle. Compensatory and punitive damages may be awarded in cases involving intentional discrimination based on a person's race, color, national origin, sex (including pregnancy, gender identity, and sexual orientation), religion, disability, or … Damages. The justice system uses compensatory damages as a way to restore the plaintiff to the position they would have occupied if not for the defendant's damaging behavior. As the term suggests, compensatory damages are intended to compensate for the wrong and restore the plaintiff to his or her pre-incident position (e.g., physically, economically, or mentally). 1. Punitive damages punish the defendant and attempt to discourage them from engaging in similar bad behavior in the future. Others use a per diem method in which the duration of suffering is multiplied by a daily amount to get the total general damages. ... For example, suppose the defendant caused the plaintiff injuries due to drunk driving. They are the legal system's method of discouraging future bad behavior by making it financially harmful to the defendant. On the other hand, general damages are more subjective and usually correspond to injuries for which the financial value is difficult to determine. In 2005, Paul Decker received a gadolinium-based medication used to increase visibility of certain anatomical structures in a magnetic resonance imaging (MRI) procedure. 1. The boy sued his classmate. Learn about your legal options and get free evaluations from attorneys experienced with product liability and personal injury cases. For example, if … LII / Legal Information Institute. A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. The boy was left permanently unable to use his leg ever again. Special damages are those that are easily calculable and not really up for debate, and typically have a firm dollar figure attached to them. In court, Bill was awarded compensatory damages to make him whole as well as punitive damages because of the defendant’s reckless nature. In Wisconsin in the nineteenth century, a boy hurt his knee. Punitive damages, or exemplary damages, are awarded to a plaintiff in addition to compensatory damages as a way to punish the defendant for a purposeful or especially negligent action. The refunded money would be considered incidental damages. Were you injured in a construction accident? In both cases, the defendant would have made a conscious decision to engage in … There are many types of compensatory damages, but the two main types are special damages and general damages. Type of special damages, occurring due to a defendant's failure to satisfy a contractual obligation, accounting for the costs incurred as a direct result of the breach of contract. They are not designed to punish the breaching party, but merely make the party that was breached against “whole again,” as it is commonly phrased. Compensatory damages include direct damages and consequential damages. What are some examples? Compensatory Damages Normally, compensatory damages include one or more of three possible items: loss in value, any allowable consequential damages (also called special damages), and any allowable incidental damages. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. 3 min read. The form containing your information goes to The Meneo Law Group or one of its partner firms. Click here for more information on why The Meneo Law Group is qualified and capable of handling your case. Examples are: loss of enjoyment of life, deterioration of health (both physical and mental), loss of social standing, damage to reputation, etc. To that end, we've gathered a few examples from the lawsuits we cover here at ConsumerSafety.org. To show the difference, take a look at two famous textbook cases about damages, one in personal injury, and one in contracts. The following are not compensatory When a plaintiff in a lawsuit demonstrates that they, their property or their reputation have been harmed by the bad actions of another, the law entitles them to reparations for that harm. Not exceed four times the amount of compensatory damages compensatory damages example his gadolinium lawsuit Johnson, alleging they to! 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