Which of the following best describes compensatory damages?

• A. Punishment for reckless conduct
• B. A penalty paid to the state
• C. Money paid to cover losses like medical bills, lost wages, and pain and suffering
• D. Attorney fees only

Answer: (C)

Compensatory damages are the amounts awarded to compensate the plaintiff for actual losses caused by another’s wrongful act. They are intended to restore the injured person to the position they would have been in if the harm had not occurred. This includes both economic losses, like medical bills and lost wages, and non-economic losses, such as pain and suffering or loss of enjoyment of life. In medical contexts, these damages cover the costs of care and the impact on daily living.

They differ from punitive damages, which punish particularly egregious or reckless conduct and are not tied to actual losses. They also differ from penalties paid to the state, which are criminal fines rather than compensation for harm. Attorney fees are typically separate costs unless specific statutes allow fee shifting. The choice described fits compensatory damages because it covers the actual losses and harms the plaintiff endured.