Damages

The right to a remedy depends on whether there have been damages. "Damage" is a loss or injury to a person, their property or reputation. In a lawsuit, damages typically refer to monetary compensation. The party at fault (if fault is proved) compensates the injured party if a verdict is rendered in the injured party's favor.

Compensatory Damages

Compensatory damages are calculated on the basis of the cost of making the person "whole." For example, a man who was fired because of his advanced age recovers all the salary he would have earned if he had not been terminated. The family whose fence was destroyed by a reckless driver recovers the cost of replacing the fence.

Punitive Damages

Generally awarded where a lawsuit involves a corporate defendant, punitive damages are recoverable in order to punish the company and deter future bad acts. An attorney arguing for punitive damages typically asks for a percentage of the corporation's net worth. For example, the trucking line that has consistently employed unsafe drivers, one of whom finally caused a death, may be required to pay 1 percent of its net worth in punitive damages. If the company is worth $100 million, punitive damages are $1 million.

TIP: Though $1 million might be an excessive award to some, juries often consider a small percentage of net worth to be a minimal figure in wrongful death cases.

Sidebar: Laws are being revised in many states to "cap" or set a limit on the amount of punitive damages a party may recover.

What are my damages if I was injured in a car wreck?

The most easily calculated damages are the cost of your medical care and the repairs or replacement of your vehicle. However, you are also entitled to damages for your pain and suffering.

Sidebar: Damages for pain, suffering and mental anguish depend on the extent of the person's injuries, the trauma to their life and their inability to work. Juries have great discretion in awarding these types of damages. A person who suffered greatly may be awarded tens of thousands of dollars.

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