Monday, September 21, 2009

Damages

Compensatory damages are paid to compensate a claimant for loss, injury or harm suffered by another's breach of duty. Punitive damages are awarded to a plaintiff in a legal suit to serve as a punishment for the defendant. Punitive damages are a modern phenomenon of the U.S. judicial system. While compensatory damages are insurable, punitive damages may or may not be, depending on the state.
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