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, 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 had the accident never occurred. That is, the defendant may be required to pay the plaintiff’s medical bills, lost wages (from ...