What is the primary purpose of compensatory damages in a legal context?

The primary purpose of compensatory damages in a legal context is to provide financial compensation to a plaintiff for actual injuries or damages suffered as a result of a defendant's actions. This type of damage is intended to make the plaintiff whole again, addressing losses such as medical expenses, lost wages, pain and suffering, and property damage. By awarding compensatory damages, the legal system seeks to relieve the burden placed on the injured party as a direct result of the wrongful conduct of another.

In this context, it is important to distinguish compensatory damages from other types of damages such as punitive damages, which are intended to punish a defendant and deter future wrongful conduct. Legal fees are typically not covered under compensatory damages, as these are separate costs incurred by a plaintiff in the pursuit of justice. Therefore, compensatory damages focus specifically on the reparation of actual losses suffered rather than on punitive measures or cost reimbursements.