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Compensatory damages are meant to offset an injury sustained by an individual. âActualâ damages are those which reimburse an individual for out-of-pocket expenses. These include monetary awards for medical expenses, property damage, and loss of income.
Although the purpose of punitive damages is not to compensate the plaintiff, the plaintiff will receive all or some portion of the punitive damage award. Punitive damages are often awarded where compensatory damages are deemed an inadequate remedy.he Court held that punitive damages must be reasonable, as determined by the degree of reprehensibility of the conduct that caused the plaintiff's injury, the ratio of punitive damages to compensatory damages, and any comparable criminal or civil penalties applicable to the conduct.