What is the difference between compensatory and punitive damages?

Compensatory damages and punitive damages are two types of monetary awards available in Texas accident law. Compensatory damages are intended to compensate the injured party for their losses. This type of damage is usually awarded to cover expenses such as medical bills, lost wages, and property damage. Compensatory damages also can include non-economic damages such as pain and suffering or emotional distress. Punitive damages, on the other hand, are designed to punish the defendant for their negligence or wrongful conduct. They are not meant as compensation for the injured party; instead, the court awards this type of damage to discourage similar conduct from occurring in the future. Punitive damages are not awarded in every case, but when they are, they are usually much higher than compensatory damages. Punitive damages are controversial because they can result in large financial awards, which could be seen as excessive. Therefore, it is important to consider these differences when deciding whether to seek compensation for an accident.

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What is the difference between compensatory and punitive damages?

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