If you’ve ever been involved in a legal case in Michigan, you’ve probably heard about two types of damages: compensatory and punitive damages. Each type of damages serves a different purpose, and understanding the differences between them can be crucial to the outcome of your case. In this article, we’ll take a closer look at what each type of damages means, how they’re calculated, and when they’re awarded.
Table of Contents
What are Compensatory Damages?
Compensatory damages are the most common type of damages in Michigan civil cases. These damages are designed to compensate the plaintiff for the losses they’ve suffered as a result of the defendant’s actions. Compensatory damages can be awarded in cases where the plaintiff has suffered physical or emotional harm, financial losses, or damage to their reputation or property.
There are two types of compensatory damages:
- Economic damages
- Non-economic damages
Economic Damages
Economic damages, also known as special damages, are awarded to compensate the plaintiff for financial losses they’ve suffered as a result of the defendant’s actions. These damages can include things like medical expenses, lost wages, property damage, and any other out-of-pocket expenses that can be directly attributed to the defendant’s actions. Economic damages are calculated based on the actual cost of the losses suffered by the plaintiff, and are usually supported by evidence such as bills, receipts, and expert testimony.
Non-Economic Damages
Non-economic damages, also known as general damages, are more subjective and are awarded to compensate the plaintiff for things like pain and suffering, emotional distress, and loss of enjoyment of life. These damages are more difficult to calculate than economic damages, as they’re based on the plaintiff’s subjective experience rather than tangible evidence. However, expert witnesses such as doctors, therapists, and economists can be called in to testify to the extent of the plaintiff’s non-economic damages.
What are Punitive Damages?
Unlike compensatory damages, which are designed to compensate the plaintiff for losses they’ve suffered, punitive damages are awarded with the specific goal of punishing the defendant for their actions and deterring others from engaging in similar behavior in the future. Punitive damages are only awarded in cases where the defendant’s actions were particularly egregious or showed a disregard for the safety and well-being of others.
Punitive damages can be awarded in addition to compensatory damages, but they’re not designed to compensate the plaintiff for any specific losses. Instead, they’re designed to make the defendant pay for their wrongdoing and send a message to others that similar behavior won’t be tolerated.
How are Damages Calculated?
The amount of damages awarded in a civil case can vary widely depending on the specific circumstances of the case. When determining the amount of compensatory damages to award, the judge or jury will take into account the plaintiff’s actual economic losses, as well as their non-economic losses such as pain and suffering.
When it comes to calculating punitive damages, there are a number of factors that are taken into account, including the severity of the defendant’s actions, their level of intent, and their ability to pay. In Michigan, there are also statutory caps on the amount of punitive damages that can be awarded in certain cases.
Conclusion
If you’re involved in a civil case in Michigan, understanding the difference between compensatory and punitive damages is essential. Compensatory damages are designed to compensate the plaintiff for their losses, while punitive damages are designed to punish the defendant and deter others from engaging in similar behavior. Whether you’re seeking compensation for a personal injury or other damages, having a knowledgeable attorney on your side can help ensure you receive the compensation you’re entitled to.