Compensatory damages are money awarded to a plaintiff (the injured person) to compensate them for damages, injury, or other incurred losses. Compensatory damages are awarded in civil court cases (like a Colorado personal injury claim) where loss has occurred as a result of the negligence or unlawful conduct of another party. Compensatory damages include economic, non-economic, and impairment damages.
Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for willful and wanton conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. Although not extremely common in Colorado personal injury lawsuits, if the defendant’s actions are egregious, punitive damages can be sought.