'Law & Ethics Practice Test 2025: Comprehensive All-in-One Guide to Master Professional Liability and Medical Malpractice'

The monetary compensation awarded to a plaintiff for injuries or losses is classified as general compensatory damages. This type of damage serves to compensate the injured party for the actual harm suffered, such as medical expenses, lost wages, pain and suffering, and loss of enjoyment of life. The primary goal of general compensatory damages is to restore the plaintiff to the position they would have been in had the injury or loss not occurred, addressing both tangible and intangible losses.

In contrast, punitive damages are awarded to punish the wrongdoer and deter future misconduct, rather than to compensate the plaintiff directly for their losses. Nominal damages recognize that a legal wrong has occurred, typically in situations where there is no substantial loss to compensate, but still allow the claimant to receive a small monetary award. Statutory damages are predetermined amounts specified by law for certain types of violations and do not relate directly to the actual losses suffered. These distinctions clarify the definition and purpose of the compensatory damages that are awarded to plaintiffs in civil cases.