After a plaintiff receives compensatory damages, what is the purpose of the awarded amount?

The awarded amount in compensatory damages serves the primary purpose of providing financial relief for specific losses that the plaintiff has incurred due to the defendant's wrongful actions. This type of damage is designed to restore the plaintiff, as much as possible, to the financial position they would have been in had the harm not occurred. Compensatory damages can cover various losses including medical expenses, lost wages, and property damage, thereby addressing the tangible impact of the defendant's actions on the plaintiff's life.

While other options provided address different aspects of legal outcomes—such as attorney fees, signaling wrongdoing, or establishing precedents—they do not reflect the fundamental role of compensatory damages, which is essentially about reparation for losses.