• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

Compensatory damages are those damages (i.e., a financial judgment) awarded by a court that are intended to reimburse an injured party for the harm caused by the actions of another. These damages are awarded in a wide variety of legal actions (e.g., torts, breach of contract, wrongful termination) and include harm caused to a person's property, personal well-being, and/or financial interests. For example, if a plaintiff is injured in an automobile accident caused by the reckless driving of the defendant, then the defendant may be required to pay an amount intended to place the plaintiff in the same position he or she would have been in had the accident never occurred. That is, the defendant may be required to pay the plaintiff's medical bills, lost ...

    • Loading...
    locked icon

    Sign in to access this content

    Get a 30 day FREE TRIAL

    • Watch videos from a variety of sources bringing classroom topics to life
    • Read modern, diverse business cases
    • Explore hundreds of books and reference titles