Which type of damages compensates a plaintiff for losses incurred?

Compensatory damages are designed specifically to reimburse a plaintiff for actual losses incurred due to another party's actions or negligence. These losses can include medical expenses, lost wages, property damage, and other out-of-pocket costs directly associated with the injury or harm suffered. The primary purpose of compensatory damages is to restore the plaintiff, as much as possible, to the position they would have been in had the injury not occurred. This aligns with the legal principle that individuals should not suffer financial losses due to the wrongful actions of others.

In contrast, punitive damages are intended to punish the defendant for particularly egregious behavior and to deter similar actions in the future, rather than to compensate the plaintiff for their losses. Exemplary damages, often considered synonymous with punitive damages, share this focus on punishment rather than recompense. The term "agenda damages" does not relate to established legal terminology regarding loss compensation and is therefore not applicable in this context.