If someone else’s negligence caused you to be hurt in an accident, you may be able to sue for damages through a personal injury lawsuit. The damages awarded in a personal injury case generally fall into two main categories – compensatory and punitive.
Understanding the key differences between compensatory and punitive damages is important when filing a personal injury claim.
A personal injury law firm can make sure you get full and just compensation for your losses and assist in describing the kinds of damages you may be able to recover.
This article provides an overview of compensatory and punitive damages, how they differ, and when each may be awarded in a personal injury case.
What Are Compensatory Damages?
Compensatory damages, also called actual damages, are intended to compensate the plaintiff for any quantifiable losses suffered due to the defendant’s negligent or unlawful conduct. The purpose of compensatory damages is to make the plaintiff “whole” again by providing payment for medical expenses, lost income, property damage, and other out-of-pocket costs caused by the accident or injury.
The most typical kind of damages granted in personal injury cases are compensatory damages. Compensatory damages fall into two primary categories:
Economic Damages
Economic damages cover quantifiable monetary losses such as:
- Medical expenses – This includes past medical bills already paid, as well as estimated costs for future medical treatment related to the injury.
- Lost wages – If the injury prevents the plaintiff from working for a period of time, the defendant may have to reimburse lost wages. Estimated future lost earnings may also be awarded.
- Property damage – If the plaintiff’s property was damaged in the accident, such as a vehicle, the at-fault party will likely have to pay for repairs or replacement costs.
Non-Economic Damages
Non-economic damages cover subjective, non-monetary losses such as:
- Pain and suffering – This covers physical discomfort and emotional distress caused by the injury.
- Loss of enjoyment of life – Damages may be awarded if the injury results in the plaintiff no longer being able to participate in activities they once enjoyed.
- Loss of consortium – If the injury negatively impacts the relationship between spouses, compensation may be awarded.
Non-economic damages are more arbitrary, whereas economic damages are determined by taking into account actual financial losses. There are no fixed guidelines for determining an exact dollar amount. The amount of non-economic damages is usually decided by a jury based on the specific circumstances of the plaintiff’s suffering and losses.
What Are Punitive Damages?
Punitive damages are not granted as compensation, in contrast to compensatory damages. The purpose of punitive damages is to punish the defendant for especially egregious conduct and deter similar behavior in the future.
Punitive damages, sometimes called exemplary damages, are awarded when the defendant’s actions go beyond simple negligence. Gross negligence, willful misconduct, malice, or reckless disregard for others may warrant punitive damages.
Punitive damages are awarded in relatively few personal injury cases, as the behavior requirements are stringent. They are awarded at the discretion of the judge or jury when the facts of the case seem to call for additional punishment of the defendant.
While some states place a cap or limit on the amount of punitive damages that can be awarded, others do not. Punitive damages are generally calculated as a multiple of the compensatory damages. For instance, the defendant may have to pay double, triple, or even quadruple the amount of compensatory damages as punitive damages.
Key Differences Between Compensatory and Punitive Damages
While both compensatory and punitive damages may be awarded in a personal injury case, there are some important distinctions between these two types of damages:
- Purpose – Compensatory damages are intended to compensate the plaintiff for losses, while punitive damages are meant to punish the defendant and deter certain behaviors.
- Basis for award – Compensatory damages are awarded when the defendant is negligent. Punitive damages require a higher showing of willful misconduct or gross negligence.
- Requirements – Compensatory damages only require proving the extent of the plaintiff’s losses. Punitive damages have the additional requirement of demonstrating malicious intent or extremely reckless conduct.
- Caps on amounts – Most states do not limit compensatory damages, but some cap the amount of punitive damages that can be awarded.
- Calculation method – Compensatory damages are calculated based on actual losses. Punitive damages involve more discretion, often calculated as a multiplier of the compensatory amount.
- Frequency – Compensatory damages are commonly awarded in many personal injury cases. Punitive damages are only awarded in a small fraction of cases.
When Are Punitive Damages Awarded in Personal Injury Cases?
Since punitive damages require malicious intent or extreme recklessness, they are not frequently awarded in personal injury lawsuits.
The following are some instances in which punitive damages may be granted:
- Drunk driving accidents – Drivers who cause injury accidents while intoxicated are often liable for punitive damages due to their reckless disregard for human life.
- Intentional assaults or battery – When an injury is intentionally inflicted, such as physical assaults or workplace violence, punitive damages help punish the wrongdoer.
- Defective product accidents – If a manufacturer knew about a dangerous product defect but failed to warn consumers or remedy the issue, punitive damages help hold them accountable.
- Medical malpractice – In cases of gross negligence, such as operating on the wrong body part, punitive damages may be justified.
- Nursing home abuse or neglect – When vulnerable seniors are abused or mistreated, punitive damages send a message that such conduct will not be tolerated.
Ultimately, the judge or jury determines if the specific circumstances warrant awarding punitive damages in addition to the compensatory amount. A personal injury attorney can advise if punitive damages may be justified in a particular case.
How Does a Personal Injury Lawyer Help Maximize Damages?
After being injured in an accident caused by negligence or wrongful conduct, the experienced personal injury attorneys at Louis W. Grande Injury Law can help you understand the types of damages you may be entitled to. They handle all aspects of the claims process on your behalf and make sure you receive full and fair compensation.
Having an attorney represent you can significantly increase your potential compensation. An insurance company may try to get you to accept an unreasonably low settlement, but lawyers know how to negotiate effectively and will fight to secure rightful compensation.
To discuss your case during a free consultation, contact the Rhode Island personal injury law firm Louis W. Grande Injury Law today.
