Punitive damages, also known as exemplary damages, are those intended as punishment for the defendant’s actions. Damages is based on the principle of making good a loss or injury suffered by an aggrieved party as opposed to punishing the wrongdoer or person who caused the loss or injury. Thus, if the judge and/or jury determine that the defendant’s conduct or actions have been outrageous or malicious, the court will impose a punishment by way of Punitive Damages. While courts grant actual damages to plaintiffs to compensate them for a loss they have suffered, they impose punitive damages on a defendant to discourage the behavior that led to the defendant being sued in the first place. In contrast, punitive damages are awarded in extreme cases where behavior is considered to be so socially unacceptable that the court needs to … Whereas the compensatory damages are meant to compensate the victim, punitive damages are awarded as a means of punishing the defendant. Compensatory damages are sometimes referred to as "actual damages." Loss or impairment of physical or mental capacity, including the loss of that person's ability to make their own decisions or provide for their own care. Punitive damages will provide a monetary award over and above the amount of actual loss that was incurred. The intention is to prevent the defendant from ever repeating the wrongful act. These are awarded according to the actual loss, and are restricted to the value of the items at the time of loss, specifically the “used” or “depreciated” property value. Punitive damages are designed to prevent others from being hurt by the same or similar actions. Most damage awards are compensatory, and every injured person who wins a personal injury case is awarded compensatory damages. While courts grant actual damages to plaintiffs to compensate them for a loss they have suffered, they impose punitive damages on a defendant to discourage the behavior that led to … It represents a remedy or award granted in civil law cases that are typically a monetary payment paid to a person who has suffered a loss or injury. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Still other states have formulas that calculate punitive damages relative to the total compensatory award. Their role is to discourage the party at fault from engaging in the type of conduct that led to the lawsuit in question. Many different methods are employed to place a dollar value on these intangible assets. In those sort of cases, the compensation pays for medical bills, expenses incurred due to rehabilitation, hospital bills, and lost earnings. The court’s remedies include, first, a personal order telling the defendant to perform or refrain from something, an order that may be restitution, and, second, money that may also include compensatory damages, restitution, ... Compensatory vs. Punitive Damages in New York 21/02/2019 0 Comments Posted by Siler & Ingber, … The reasoning for this is two-fold. Difference Between Legal and Equitable Remedies, Difference Between Civil Law and Criminal Law, Difference Between Arbitration and Conciliation, Difference Between Grand Jury and Trial Jury, Compensatory and Punitive Damages difference, Difference Between Coronavirus and Cold Symptoms, Difference Between Coronavirus and Influenza, Difference Between Coronavirus and Covid 19, Difference Between Galvanizing and Tinning, Difference Between Electroplating and Anodizing, Distinguish Between Chloroethane and Chlorobenzene, Difference Between Methotrexate and Methotrexate Sodium. This wrongful act could be a breach of duty or breach of contract. Emotional distress, which includes not just physical injury but also sexual harassment, slander, or physical abuse. Compensatory vs. Punitive Damages. Punitive damages, also called exemplary damages, are a form of punishing the wrongdoer but are only awarded in certain circumstances, for example, to set a public example. Punitive Damages is defined as a monetary payment awarded to an aggrieved party in circumstances where the wrongdoer’s actions or inaction was of a malicious, evil, or reckless nature. Compensatory damages tend to be awarded more frequently than punitive damages. Compensatory damages are given to the injured victim to help pay for medical expenses and other damages created, while punitive damages are meant to penalize the at-fault party. 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