What is the difference between compensatory and punitive damages?

A: Compensatory damages are intended to compensate the injured party for their actual losses, including medical expenses, lost wages, and pain and suffering. These damages are calculated based on the specific harm suffered by the plaintiff as a result of the defendant’s actions. Punitive damages, on the other hand, are awarded in cases where the defendant’s conduct was particularly egregious, reckless, or malicious. The goal of punitive damages is not to compensate the plaintiff but to punish the defendant and deter similar behavior in the future. While compensatory damages are common in most personal injury cases, punitive damages are rare and typically only awarded in cases involving gross negligence or intentional misconduct.