In civil cases in Canada, damages are considered the cornerstone of the legal process. They are the monetary compensation awarded to plaintiff if the court deems that they have suffered a loss or injuries due to the actions or omissions of the defendant(s). Having a basic understanding of the different types of damages going into civil litigation can help the plaintiff to understand the assessment of their case, and not feel so overwhelmed when it comes time to discuss settlement.
Generally speaking, there are two categories of damages, punitive and compensatory damages.
Punitive Damages
Punitive, or as they are also sometimes referred to, exemplary damages, as the name implies, are awarded in order to penalize the defendants for their behaviour, which caused the injury/injuries to the plaintiff. They are also intended to act as a deterrent for the defendant, and other people or entities, to prevent them from engaging in whatever act brought about the lawsuit. Typically, punitive damages are awarded by the courts in cases where the defendant’s conduct is egregious and goes beyond negligent acts or omissions and they are only awarded in exceptional cases. These awards, unlike compensatory damages, are based on the defendant’s conduct, instead of the losses suffered by the plaintiff.
Compensatory Damages
Compensatory damages on the other hand, are intended to place the plaintiff back in the position they would have been in, if the negligence had not occurred. They are typically seen as the “main” damages that civil courts award the plaintiff. As the name suggests, they are designed to cover the actual losses of incurred by the plaintiff. Compensatory damages can be further broken down into other categories, including general, and special damages.
- General Damages: Compensation that is awarded to the plaintiff for the pain and suffering, mental and emotional distress, and mental illness caused by the negligence of the plaintiff, or for the non-financial aspects of their loss. After all, serious motor vehicle accidents, slip and falls, etc. can leave the plaintiff with more than just physical injuries. These are also sometimes called ‘non-pecuniary losses’. They tend to be a bit more challenging to calculate, and tend to be higher for those who suffered more serious injuries, and lower for injuries that may be considered minor.
- Special Damages: Compensation for quantifiable losses suffered by the plaintiff because of the defendant’s wrongdoing or negligence. They tend to be easier to calculate, and can include things such as medical bills, lost wages, a loss of competitive advantage at work, the cost of replacing damaged property, and any other out-of-pocket expenses related to the incident that caused the injury.
Understanding the difference between pecuniary and compensatory damages can help you better understand what losses you may be able to recover, and how the law works to ensure you are treated fairly after an injury.
