When it comes to personal injury law, damages are often a key component of a case. Damages are what the injured party is awarded to compensate them for their losses. Six types of damages can be awarded in a personal injury case: compensatory, special, nominal, punitive, liquidated, and exemplary. Let’s take a closer look at each type of damage.
1. Compensatory DamagesÂ
These are the most common type of damage awarded in a personal injury case. This type of damage is intended to make the injured party “whole” again by compensating them for their losses. These damages occur with personal injury accidents that involve negligence. Compensatory damages can be further subdivided into two categories: economic and non-economic damages.Â
- Economic damages are those that have a specific monetary value attached to them, such as medical bills, lost wages, and property damage.Â
- Non-economic damages are more difficult to quantify, but they can include things like pain and suffering, emotional distress, loss of consortium, and loss of enjoyment of life.
Compensatory damages are important to understand because they are designed to make the injured party whole again after an accident.
2. Special DamagesÂ
Special damages are a type of compensatory damage that is awarded to reimburse the injured party for their specific economic losses. This type of damage is intended to compensate the injured party for their out-of-pocket expenses related to the accident. These expenses can include things like medical bills, lost wages, and property damage. Additionally, special damages can also include future economic losses, such as the loss of future earnings. For example, if the injured party is unable to return to work after the accident, they may be able to recover damages for their lost future earnings.
3. Nominal DamagesÂ
Nominal damages are a type of damage that is awarded when the injured party has not suffered any actual economic or non-economic losses. This type of damage is typically only awarded when the court finds that the defendant has committed a technical violation, such as breaching a contract. The award of nominal damages is usually very small, such as $1.00. For example, if a defendant breaches a contract and the only damages that the plaintiff suffers is the loss of the value of the contract, then the plaintiff would be awarded nominal damages.
4. Punitive DamagesÂ
Punitive damages are a type of damage that is intended to punish the defendant for their actions. This type of damage is typically only awarded in cases where the defendant’s actions were particularly egregious, such as drunk driving accidents and cases of fraud. Punitive damages are not intended to compensate the injured party for their losses, but rather to punish the defendant and deter them from engaging in similar conduct in the future. So, for example, if a drunk driver causes an accident that injures another person, the injured party may be awarded punitive damages in addition to their compensatory damages.
5. Liquidated DamagesÂ
Liquidated damages are a type of damage that is specifically provided for in a contract. This type of damage is typically awarded when the parties have agreed in advance to the number of damages that will be paid in the event of a breach of contract. For example, if two parties sign a contract that includes a liquidated damages clause, and one party breaches the contract, then the other party would be entitled to receive the number of liquidated damages specified in the contract. Additionally, liquidated damages can also be awarded in personal injury cases when the parties have agreed in advance to the number of damages that will be paid in the event of an accidentÂ
6. Exemplary Damages
Exemplary damages are a type of damage that is intended to punish the defendant and deter them from engaging in similar conduct in the future. This type of damage is typically only awarded in cases where the defendant’s actions were particularly egregious, such as drunk driving accidents and cases of fraud. Exemplary damages are not intended to compensate the injured party for their losses, but rather to punish the defendant and deter them from engaging in similar conduct in the future. Also, exemplary damages are typically only awarded if the defendant has the means to pay them. For example, if a drunk driver causes an accident that injures another person, they may be ordered to pay exemplary damages in addition to compensatory damages.
All of these types of damage serve a different purpose, and it is important to understand the difference between them. If you have been injured in an accident, it is important to speak with an experienced personal injury attorney who can help you understand which type of damage may be available to you.
