What is the difference between compensatory and punitive damages?

Compensatory damages are damages that are awarded by the court to compensate a person for their losses caused by another’s wrongdoing. These damages may include economic losses (i.e. medical bills, lost wages, or repair costs) or non-economic losses (i.e. pain and suffering). The goal of compensatory damages is to make the plaintiff “whole” again, i.e. to return them to the financial and emotional state they would have had if not for the defendant’s wrongdoing. Punitive damages, on the other hand, are damages that are meant to punish the defendant for their wrongful conduct and to deter similar conduct in the future. Unlike compensatory damages, punitive damages are not awarded to compensate the plaintiff monetarily; instead, they are intended to penalize the defendant. In Virginia, punitive damages are only awarded when it is clear that the defendant acted in a malicious, outrageous, or oppressive way.

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