What type of damages are intended to compensate victims of wrongful actions?

Compensatory damages are specifically designed to reimburse victims for losses suffered due to wrongful actions. These damages aim to restore the injured party to the position they would have been in had the wrongful act not occurred. They encompass various types of losses, including medical expenses, lost wages, property damage, and pain and suffering.

In contrast, punitive damages are intended to punish the wrongdoer and deter similar behavior in the future, rather than to simply compensate the victim. Statutory damages are fixed by law and may not necessarily correspond to the actual losses incurred by the victim. Nominal damages acknowledge that a legal wrong has occurred but do not provide substantial compensation, reflecting the principle that some violations require redress even if no significant harm was demonstrated. Thus, compensatory damages are the appropriate choice when discussing financial reparation for victims of wrongful actions.