Legal Dictionary
Damages
Definition
Money ordered by a court to be paid for injuries or losses suffered.
Deep Dive
Damages refer to the monetary compensation awarded by a court to an injured party (the plaintiff) to make them whole for losses or injuries suffered due to the actions or inactions of another party (the defendant). The primary goal of damages is not to punish the wrongdoer, but rather to restore the plaintiff to the position they would have been in had the harm not occurred. They are a critical component of most civil lawsuits, acting as the tangible remedy for a legal wrong.
Examples & Use Cases
- 1A victim of a car accident sues the at-fault driver for medical bills, lost income, and emotional distress, seeking compensatory damages.
- 2A company breaches a supply contract, leading to significant lost profits for the other party, who then sues for damages to cover these losses.
- 3A court orders a pharmaceutical company to pay millions in punitive damages for intentionally concealing dangerous side effects of a drug, aiming to deter future corporate malfeasance.
Related Terms
CompensationLiabilityPunitive DamagesSettlement