What’s the Difference Between Compensatory & Punitive Damages?
After a car crash, product malfunction, or other personal injury accident, you can seek compensation from the at-fault parties for your financial and subjective losses. The legal term for these is “damages,” and they come in different forms. You may have heard the term “punitive damages” but are unsure whether your case qualifies for this.
To answer the question, “What’s the difference between compensatory and punitive damages?” you can turn to a personal injury lawyer from Tyroler Leonard. We are committed to educating the community about common legal issues and providing exceptional representation against negligent parties.
Defining Damages in a Personal Injury Case
One of the first things your personal injury attorney will do is ask you for records and receipts related to your injuries and property loss. These form the basis of your settlement demands and support your claim of negligence and harm by the defendant. The total amount of your losses is your damages, including past, current, and future expenses.
When you bring a lawsuit against another party in Minnesota, it falls under the state’s tort laws, which address wrongdoings among civilians. Damages are only awarded in civil cases, whereas fines and incarceration may result from criminal trials. Even if the person who hurt you is convicted of criminal acts, this does nothing to repay you for your personal losses.
That is where damages come in, as a way to make the victim “whole” by returning them to the financial state they were in prior to the injury. If your claim is successful, the defendant is compelled to compensate you in full, although certain circumstances may affect the total amount.
Understanding Compensatory Damages
As mentioned, damages in a civil trial are considered compensatory, meaning they pay you back for the harm you have experienced. The burden of proving negligence by the alleged party falls onto you as the plaintiff. You and your personal injury attorney must present a preponderance of the evidence demonstrating the following elements:
- The defendant owed you a duty of care to behave safely and reasonably toward others.
- The defendant failed to uphold their duty.
- You suffered injury as a result of the defendant’s failure.
- You have financial and non-financial injuries that must be compensated.
Your attorney will use a range of evidentiary materials, such as photos, videos, witness statements, accident records, medical bills, and expert testimony, to show what happened and how. They will work to persuade the judge and jury of the defendant’s negligence and how they are required to pay you what you deserve.
Economic vs. Non-economic Compensatory Damages
In Minnesota, compensatory damages fall into two subcategories: economic and non-economic. Economic damages, also known as special damages, refer to any loss that has an associated financial cost, such as medical bills, lost income, therapy and rehabilitation costs, medications, and personal property loss.
Non-economic losses are called general damages, and they address your pain and suffering. These damages are harder to assess, but your attorney will use special formulas to create a fair and appropriate estimate. General damages vary according to the severity of your injuries and how much your life has changed. They can include anxiety, disfigurement, isolation, and loss of reputation.
For example, suppose someone who enjoys playing basketball is injured in a car accident. They suffer spinal damage that limits their mobility enough that they’ll never play the sport again. This loss of a hobby may be part of their general damages, but it won’t be as significant a loss as for someone whose career was professional basketball. Not only has that person lost their income, but they may also suffer substantial depression and loss of enjoyment of life.
Understanding Punitive Damages
When a defendant’s actions were grossly negligent, malicious, or intentional, the court may elect to award punitive (or exemplary) damages. While the plaintiff will receive these in payment, they differ from compensatory damages. Punitive damages, as their name indicates, are meant to punish the defendant harshly for their wrongful actions.
This award also serves as a warning to others against engaging in the same or similar behaviors. For example, there has been a rise in so-called “nuclear awards,” aimed at reducing negligence among trucking companies after devastating accidents. The term “nuclear” refers to the number of companies that end up going out of business under the weight of these awards.
In Minnesota, punitive damages are allowed in civil trials. However, plaintiffs typically do not request these unless they have clear and convincing evidence the defendant acted egregiously. Even then, most punitive awards are strictly at the judge’s discretion. Some states have a cap on punitive awards, and your attorney can assess whether any limitations apply to your case. Contact Tyroler Leonard to schedule your free case review and get started understanding your legal options for damages today.
Attorney Isaac Tyroler
Attorney Isaac Tyroler has been a strong advocate for injured people his entire legal career. He has a passion for righting wrongs, and he deeply cares about representing injured clients who may feel overwhelmed or uncertain about how to navigate the legal system. He is compassionate toward clients and aggressive with insurance companies and defendants. He is on the elected Board of Governors of the Minnesota Association of Justice (MAJ), the top personal injury lawyers’ group in Minnesota. And is currently the chair of MAJ’s legislative committee. [ Attorney Bio ]
