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Compensatory Damages
Compensatory damages are money a court orders one party to pay another to cover actual losses caused by a wrong, like medical bills or lost wages.
What it actually is
Compensatory damages are a monetary remedy intended to restore the injured party to the position they would have been in had the harm not occurred. They appear in the damages phase of a civil case, after liability is established, and are calculated based on proven economic and non-economic losses.
Why it matters in your case
If you win your case, compensatory damages are the primary way you recover your out-of-pocket costs and intangible harms like pain and suffering. Understanding this term helps you know what evidence you need to present—receipts, medical records, proof of lost income—to support your claim.
The common misunderstanding
Many people mistakenly think compensatory damages include punishment for the wrongdoer, but they are strictly about making the victim whole, not penalizing the defendant. Punitive damages, which are separate, serve that punitive purpose.
Get the actual rule
Definitions are orientation; rules are authority
This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.
Related
Terms that travel with this one
General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.