In the legal system of Arizona, as in many other jurisdictions, damages awarded in civil lawsuits are generally categorized into two main types: compensatory damages and punitive damages.
These two forms of damages serve different purposes and are awarded based on distinct criteria.
Compensatory damages, also known as actual damages, are intended to make the injured party “whole” again by covering the actual losses they have incurred due to the defendant’s actions. These damages can be further divided into two main types: economic and non-economic damages.
Also known as special damages, these are quantifiable monetary losses that the plaintiff has suffered. They include:
Example: If an individual is injured in a car accident caused by a negligent driver, compensatory damages might cover the victim’s medical bills, the cost of repairing their vehicle, and lost wages due to time off work.
Also known as general damages, these compensate for more subjective, non-monetary losses. They include:
Example: In the same car accident scenario, if the victim experiences chronic pain or PTSD as a result of the crash, non-economic damages would cover these intangible losses.
Punitive damages, also known as exemplary damages, are not intended to compensate the plaintiff for a loss but rather to punish the defendant for particularly egregious or malicious conduct and to deter similar behavior in the future.
In Arizona, punitive damages are awarded only if the plaintiff can prove by clear and convincing evidence that the defendant’s actions were driven by an “evil mind,” characterized by maliciousness, oppression, or reckless indifference to the rights of others.
Example: If a company knowingly sells a dangerously defective product and fails to recall it, resulting in severe injury or death, punitive damages might be awarded to punish the company for its recklessness and disregard for consumer safety.
For more information on seeking damages in Arizona, read our article: SEEKING DAMAGES IN ARIZONA: TOP FAQS ANSWERED
The fundamental difference between compensatory and punitive damages lies in their purpose:
While there are no caps on damage amounts, Arizona law sets certain stringencies on these damages:
Understanding the distinction between compensatory and punitive damages is crucial for anyone involved in a civil lawsuit in Arizona. Navigating the complexities of these damages can be challenging, and guidance from an experienced attorney is essential. That’s where Stone Canyon Law comes in.
A knowledgeable attorney provides invaluable assistance in gathering evidence, presenting a compelling case, and maximizing the potential for a fair and just award. Contact Stone Canyon Law today!
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