Compensatory damages are intended to:

• A. Punish the violator
• B. Compensate person for injury to person or property (out of pocket expenses)
• C. Cover court costs
• D. Award nominal damages

Answer: (B)

Compensatory damages focus on making the victim whole by paying for actual losses caused by the injury. They cover out-of-pocket expenses and other tangible harms tied to the person or their property—think medical bills, rehabilitation, property repairs, and lost wages. The aim is to restore the financial position the person would have been in if the injury hadn’t occurred, and they can also include related costs like future medical care or lost earning capacity in applicable cases.

This differs from punitive damages, which are meant to punish the wrongdoer and deter future conduct. It also isn’t about awarding nominal damages, which are a small amount given when there’s liability but little or no actual loss. Court costs are typically addressed separately, though they can sometimes be recoverable in a broader judgment.