What type of damages aims to restore the injured party to their original financial condition?

Compensatory damages are specifically designed to restore the injured party to their original financial condition before the harm occurred. This type of damage is intended to reimburse the injured party for actual losses or harm suffered, which may include medical expenses, lost wages, property damage, and any other costs that directly resulted from the wrongful act. The goal is to make the injured party whole again by addressing the financial impact of the injury or loss.

In contrast, punitive damages are intended to punish the wrongdoer and deter others from committing similar acts, rather than to compensate the injured party. Consequential damages refer to losses that occur as a secondary result of an incident, which can be more challenging to calculate and prove. Exemplary damages are synonymous with punitive damages, focusing on punishment rather than restoration. Therefore, compensatory damages align directly with the objective of financial restoration for the injured party.