What is the intended outcome of awarding compensatory damages?

The intended outcome of awarding compensatory damages is to reimburse the plaintiff for losses suffered as a direct result of the defendant's actions. Compensatory damages are designed to make the injured party whole again, meaning they should be placed in the position they would have been in had the wrongful act not occurred. This type of damage seeks to cover both tangible losses, such as medical expenses and property damage, as well as intangible losses like pain and suffering or emotional distress.

The essence of compensatory damages is the focus on the recovery of actual losses incurred, ensuring that the plaintiff receives an amount that corresponds to the extent of their injury or loss. This objective addresses the need for justice by providing the plaintiff with a remedy that compensates for their specific situation rather than aiming to impose penalties or set precedents.