What is compensatory damages designed to achieve?

Compensatory damages are intended to restore the plaintiff's economic loss that has occurred due to the actions or negligence of another party. The primary focus of this type of damage is to make the injured party "whole" again, compensating them for actual losses suffered, which can include lost wages, medical expenses, property damage, and other quantifiable financial impacts.

The aim is not to punish the defendant or act as a deterrent against future actions, which is the purpose of punitive damages. Rather, compensatory damages are calculated based on the extent of the harm caused, making it a remedial approach focused on restoring financial balance to the plaintiff's situation. This aligns with the fundamental principle of tort law, where the goal is to address and remedy the losses incurred due to someone else's conduct.