What is the role of compensatory damages in tort law?

Compensatory damages play a crucial role in tort law as they are primarily intended to reimburse the victim for actual losses suffered due to the wrongdoing of another party. This reimbursement covers various types of losses, including medical expenses, lost wages, pain and suffering, and property damage. The aim is to restore the victim, as much as possible, to the position they would have been in had the tort not occurred.

Unlike punitive damages which seek to punish the wrongdoer and deter future misconduct, compensatory damages focus exclusively on making the injured party whole again, thereby addressing the immediate financial impact of the harm they experienced. This foundational principle of tort law underscores the importance of accountability and compensation for those who have been wronged. By ensuring that victims receive appropriate recompense, compensatory damages help maintain a balance of justice within the legal system.