Winning a lawsuit often means receiving money, not a change in status. Damages are the monetary compensation a court awards to a party for loss or injury caused by another’s legal wrong.

Compensatory damages aim to restore the injured party to the position they would have occupied without the wrong, covering economic losses and sometimes non-economic harm such as pain and suffering. Punitive damages, available in limited cases, punish especially wrongful conduct and deter similar behavior. Nominal damages recognize a technical violation without substantial loss.

Plaintiffs must prove both the fact of damage and a reasonable basis for the amount. Contract and tort measures differ in what counts as recoverable. Settlement negotiations frequently center on competing calculations of damages rather than on pure liability.

• Money awarded for legal injury or loss
• Primarily compensatory; sometimes punitive
• Must be proven with reasonable certainty
• Central remedy in civil litigation