The Differences Between Compensatory and Punitive Damages in New York

New York State is serious when it comes to taking care of accident victims. Whether your injuries were caused by a slip and fall, a car accident, or any other means, you’re entitled to seek financial compensation from the at-fault party. You can even seek compensation if you’re partly to blame for what happened.

That said, there are two types of damages that New York courts award to people who have been injured in Brooklyn and beyond: compensatory and punitive.

A Word on Damages in a Lawsuit

The term damages refers to monetary compensation that a court awards to someone who’s been injured. Basically, it’s a sum of money that the victim receives to help pay for medical bills, to make up for lost wages, and to cover any other expenses that the victim deems necessary.

The damages that we’re discussing here refer to what you could be awarded in court. In most cases, know that insurance companies prefer to settle out of court. When that happens, you may still receive money; it’s simply called a settlement, though, rather than damages. Technically, damages are only awarded by courts.

Compensatory Damages

The law uses compensatory damages to compensate you for what you’ve suffered. The guilty party is generally held responsible for paying for the consequences of his or her wrongful act, and those consequences could include:

• Your past, current and future medical bills
• Your past, current and future inability to work
• Your past, current and future mental health-related costs
• The cost of your property that was destroyed

There are several other reasons you may be entitled to compensatory damages, as well, and your lawyer will help you determine what’s fair when you meet.

Punitive Damages

Punitive damages aren’t the same as compensatory damages. Like the name implies, they serve as a punishment. These damages are still financial, but they have a different intent: they’re designed to teach the guilty party (and anyone else who’s behaving badly in the same way) a lesson.

A court may award you punitive damages if you’ve been the victim of someone’s willful negligence, or if the person had a malicious intent while causing your accident. Again, your lawyer will discuss the possibility of punitive damages with you.

Your Lawyer is Your Resource

Your lawyer has a few jobs while he or she is representing you. Naturally, one is to get you the justice that you deserve; another is to defend your rights and preserve them should your case go to trial.

Perhaps most importantly, though, is the job of keeping you informed. Your lawyer won’t mind if you ask questions; in fact, he or she will welcome them. If you aren’t sure about something, speak up—it’s your attorney’s job to make sure you understand the entire process and that you’re able to make informed choices along the way.