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Compensatory Damages

Compensatory damages are monies paid to the injured party in a lawsuit. The money serves to compensate the injured party for damages resulting from the accident...things like doctor’s bills, car repair, rental car fees, property damage, loss of future income, lawyer’s fees, and perhaps emotional damages. In short, compensatory damages could be anything that can be related to the accident or event.

The court will require evidence to prove the damages, but remember: you miss every shot you don’t take. Ask for everything and more. A judge can throw some things out, but won’t usually add things to the damages.

Find other enlightening terms in Shmoop Finance Genius Bar(f)