What is the difference between compensatory and punitive damages?

Compensatory and punitive damages are both forms of legal recourse available to those injured by the actions of another person. Compensatory damages are intended to make up for the losses suffered by the injured party due to the actions of the wrongdoer. These damages include reimbursement for medical bills, lost wages, property damage, and even psychological harm. Compensatory damages are intended to make up for the losses suffered by the injured party and are not meant to punish the wrongdoer. Punitive damages are an additional form of legal recourse available to those injured due to the actions of another person. Unlike compensatory damages, punitive damages are intended to punish the wrongdoer and to deter others from engaging in similar behavior. Punitive damages may be awarded if a wrongdoer acted with malice, fraud, or gross negligence. In Washington, the courts have held that punitive damages may be awarded if the wrongdoer acted in a way that was considered “outrageous” or “despicable.” Punitive damages are usually only awarded when compensatory damages are not sufficient to make up for the losses suffered by the injured party.

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What is the difference between compensatory and punitive damages?

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