What type of damages are aimed at compensating a party for losses incurred?

Compensatory damages are specifically designed to reimburse a party for the actual losses or injuries they have experienced. These damages can cover a wide range of losses, including medical expenses, lost wages, property damage, and pain and suffering. The primary goal of compensatory damages is to make the injured party whole again, reflecting the out-of-pocket costs and the impact on their quality of life due to another party's actions.

Other types of damages, such as punitive damages, are intended to punish the wrongdoer and deter future misconduct, rather than to compensate the victim. Nominal damages are often awarded when a legal wrong has occurred, but there are no significant damages to compensate for, while intervening damages refer more to effects that occur later and do not typically represent direct compensation for an original injury. Thus, compensatory damages stand as the clearest and most direct way to address actual losses suffered by an individual.