What are "compensatory damages" intended to do?

Compensatory damages are specifically designed to make a plaintiff whole after suffering a loss or injury due to another party's actions. The primary goal of these damages is to compensate for actual losses, which can include both tangible and intangible harm. This encompasses not only direct financial losses, such as medical expenses or property damage, but also lost wages and other economic impacts arising from the injury. By providing compensation for the actual loss or injury suffered, compensatory damages ensure that a victim is restored to their rightful position, as much as possible, prior to the incident.

Other choices focus on different aspects of legal relief. For instance, punitive damages are intended to punish the wrongdoer and deter similar conduct in the future, rather than to compensate the victim directly. The idea of deterring future unlawful actions is also connected to punitive measures rather than compensatory ones. Lastly, while emotional distress can be part of compensatory damages, it is not exclusively focused on that aspect, as compensatory damages cover a broader range of losses.