What is the Difference Between General, Special and Punitive Damages?

When you file a lawsuit or a liability judgment is made, for or against you, there are multiple different kinds of damages that are awarded. The award is basically the same, almost always a monetary value that is issued in accordance with the severity of the act or loss. Knowing the difference between these damages can help you determine what your settlement may be. Some types of damages are generally awarded more money while others are not. Here is a look at the three main types of damages.

Damages that are issued to compensate for an individual's pain and suffering, generally awarded to victims of losses, are called "General Damages". These damages are hard to give a measurable value because every situation is different so it is usually dependent on the person making the damage assessment. In some cases these can be astronomical amounts and at other times they are very small, the situation depends on the severity of the situation in most instances.

"Special Damages" are damages that are awarded to compensate for a very specific part of the loss associated with the incident. For instance, if you cause damage to another person's vehicle in an accident, but you also cause physical harm to the individual, the medical bills could be special damages. They are a result of the accident and the damages are to pay for a specific and identifiable expense.

The third and final type of damage is known as "Punitive Damages" and it is something the courts or legal system use as a punishment. The person making the damage assessment will consider the reckless or deceitful act of the guilty party and make a damage declaration in accordance. The courts use this as a way to set a precedent and make examples out of people in certain situations where a criminal conviction may not do justice.

Generally, punitive damages are awarded to individuals who file claims against companies that may have acted negligently. For instance, when a drug manufacturer makes faulty drugs and knowingly drags their feet to correct the issue the courts may feel that the company acted recklessly. When this happens the court will levy a heavy fine against the company to be awarded to the individual.

Determining the amount of damages in any case can be a tricky thing to do because so much relies on precedent. This is why the judges and mediators are paid so well, because they must have a great amount of education and training to make such impactful decisions.