Punitive Damages vs Compensatory Damages: What to Know

All plaintiffs in personal injury and wrongful death cases have damages that a jury can measure with a dollar figure. These are known as compensatory damages.

When someone suffers an injury, becomes sick, or loses a loved one because of another person’s negligence, they may suffer two types of compensatory damages:

• Economic damages: Also known as special damages, economic damages typically have a clear monetary value. Economic damages include medical bills, lost income, diminished earning power, vehicle repair costs, and rehabilitation expenses. These damages are unique to each client, and their value depends on the severity of a plaintiff’s injuries, their unique professional damages, and other case-specific factors.
• Noneconomic damages: Also known as general damages, noneconomic damages do not always have a clear financial value. The most common type of noneconomic damage in personal injury and wrongful death cases is pain and suffering. Because bills and receipts don’t quantify the value of such damages, attorneys use the per diem and multiplier methods to calculate their value.

You must know the exact value of your economic and noneconomic damages. When a lawyer calculates these damages accurately, they can be confident they seek fair compensation for their client.

If you file an insurance claim or lawsuit, you will undoubtedly have compensatory damages. While punitive damages are not a certainty, you should expect your lawyer to seek compensation for economic and noneconomic damages.

Each personal injury and wrongful death case is unique, so the value of compensatory damages varies from one plaintiff to the next. For this reason, personal injury attorneys evaluate each client’s damages independently.

Juries award punitive damages to plaintiffs in personal injury and wrongful death cases for specific reasons.

While compensatory damages cover the plaintiff’s damages, punitive damages do not. Instead, punitive damages are a tool for punishing negligent parties and those who intentionally harm others.

There are many cases where a defendant is reckless in a manner that causes harm to others but doesn’t rise to the level of criminal prosecution. In these cases, punitive damages can serve as an alternative to criminal penalties like jail time.

Compensatory damages are a feature of every personal injury and wrongful death case, while punitive damages are less common.

Examples of when a plaintiff might receive punitive damages include:

• A defendant exhibits more dangerous behavior than mere negligence, such as when a medical professional operates without a valid license, or a drug manufacturer knowingly fails to warn about side effects.
• The plaintiff’s attorneys request punitive damages during settlement negotiations or at trial, and liable parties agree to pay them.
• A judge or jury determines the defendant should pay punitive damages.

Because defendants rarely volunteer to pay more than they must, a judge or jury often awards punitive damages following a trial.

The term “punitive damages” suggests the purpose of this legal tool—to punish those whose actions were particularly reckless, callous, or damaging to a defendant.

The purpose of punitive damages can include:

• To send the message to the defendant that their actions were beyond the pale of mere negligence.
• To discourage others from engaging in similarly harmful actions

Many states place statutory limits on the amount of punitive damages a jury can award. Additionally, a judge may have the discretion to adjust the value of such awards. Even so, in many cases, plaintiffs receive significant compensation through punitive damages.

The topic of damages alone is complicated. Obtaining fair compensation for your damages is even more complex. Rather than trying to determine the value of your damages and convince liable parties (or a jury) to cover those damages by yourself, you can hire a Florida personal injury lawyer to seek the compensation you deserve.

Your personal injury lawyer will:

• Identify every instance of negligence that caused you to suffer injuries, become sick, or lose a loved one.
• Determine liable parties for your damages.
• Secure all available documentation of your recoverable damages (such as medical records and proof of lost income).
• Calculate the exact value of your compensatory damages.

Your attorney will compile all available evidence of the liable parties’ negligence. Thus, should your lawyer request punitive damages during negotiations or at trial, the evidence will justify this request.

Some typical damages that a lawyer seeks compensation for include:

• Medical expenses
• Pain and suffering
• Property-related costs
• Mental health treatment costs
• Lost income
• Diminished earning capacity

You may incur additional damages, as each plaintiff has a different story, leading to different losses. Trust an attorney to document your damages in great detail and fight for every dollar you deserve.

Ged Lawyers is a law firm with a long, documented history of winning. We have secured compensatory and punitive damages for many clients and will demand fair compensation for all your losses.

Call Ged Lawyers today for a free, no-risk consultation about how we can help you. Please don’t wait, as we often face filing deadlines for cases like yours.