FRAUD I DAMAGES I CIVIL LITIGATION – Punitive Damages vs. Compensatory Damages
September 17, 2019
What is the difference between Punitive Damages and Compensatory Damages?
Punitive Damages: Punitive damages are monetary awards, payable to the plaintiff that exceed compensatory damages and aim to deter bad conduct and punish a defendant. Solely compensating a plaintiff is inadequate when a defendant has engaged in truly egregious behavior. In situations of malice, fraud, deceit and oppression a court may award punitive damages.
Typical cases where punitive damages are awarded include: Fraud claims, Breach of Fiduciary Duty, Bad Faith and Intentional Tort actions.
Our previous articles discussing punitive damages are linked below:
Compensatory Damages: Compensatory damages are monetary awards, payable to the plaintiff that aim to give back to the plaintiff what was wrongfully taken from them by way of money. In other words compensatory damages compensate a plaintiff for their loss by awarding special damages and general damages intending to make the plaintiff whole.
Typical cases where compensatory damages are awarded include: Intentional Torts, Negligence Claims and Contract Actions.
Our previous articles discussing compensatory damages are linked below:
Below is our Common Causes of Action Chart discussing the most common: Intentional torts, Negligence Actions and Contract Claims:
|Common Causes of Action|
|Intentional Torts||Assault: The imminent fear for one’s well-being|
Battery: Unauthorized touching of a person
Misrepresentation: Deceit; deliberately misleading another
Conversion: Unauthorized transfer of money or property
Intentional Infliction of Emotional Distress: Doing mental or psychological harm by act or by omission
Defamation, Libel, and Slander: Damage to a party’s reputation, image or standing in the community
Wrongful Imprisonment (or False Imprisonment): Restriction of an individual’s freedom of movement, physically or mentally
Malicious Prosecution and Abuse of Process: Forcing a party to defend him or herself against baseless prosecution
Trespass and Nuisance (these are environmental torts): Unwarranted and unauthorized entry onto property, or devaluing the enjoyment of property due to the intrusive acts of another
|Negligent Torts||Negligence: Establishment of a duty, followed by a breach of that duty, and an establishment of damages. (For compensation to be awarded, it must be established that the negligence was the proximate cause of the damages.)|
Negligence per se: Negligence while violating the law
Wrongful Death: Death caused by another’s negligence
|Contracts||Breach of Contract: Failure to fulfill certain written or oral commitments|
Bad Faith: Entering into an agreement with no intention of fulfilling obligations
Breach of Fiduciary Duty: Failing to act in the best financial interest of a party when there exists an obligation to do so
Below is our California Damages Chart discussing Special Damages vs. General Damages vs. Punitive Damages:
|Type of Damages|
|Special Compensatory Damages/ Economic Damages|
|Special damages are unique to the individual plaintiff and vary significantly from one plaintiff to the next. An award for special damages compensate a plaintiff for costs and expenses incurred as a result of the incident or accident that caused their injuries.|
|Common types of special damages:|
· loss of earnings
· property damage
· loss of future earnings
· past medical expenses
· cost for future medical care
· cost of household expenses
· reimbursement for cancelled trips or altered plans
|General Compensatory Damages/Noneconomic Damages||General damages compensate a plaintiff for non-monetary damages incurred in a personal injury claim.||Common types of general damages:|
· physical pain
· loss of enjoyment of life
· emotional distress
· mental anguish,
· pain and suffering,
· loss of enjoyment
· loss of consortium or companionship
|Punitive Damages||Punitive damages are only awarded to an injured plaintiff when the defendant’s conduct was despicable or reprehensible. Punitive damages are designed to punish a wrongdoer for the wrongful conduct and discourage similar conduct in the future.||Punitive damages are awarded when the defendant engaged in malicious, oppressive or fraudulent conduct.|
· Malice: means that the defendant acted with intent to cause injury or with willful and knowing disregard of the rights and safety of another.
· Oppression: means the defendant’s conduct was despicable and the plaintiff was subject to cruel and unjust hardship in knowing disregard of their rights
· Fraud: means the defendant intentionally misrepresented or concealed a material fact and did so intending to harm the plaintiff
If you have any questions about compensatory damages, punitive damages or have an inquiry as to whether you are entitled to an award for damages, we invite you to call us today at 619-432-5145 for a free consultation with one of our experienced damages attorney or pain and suffering lawyers.