Which type of damages aims to compensate the plaintiff for actual losses suffered?

Compensatory damages are designed to make the plaintiff whole by compensating them for the actual losses they have experienced due to the defendant's actions. This encompasses both economic losses, such as medical expenses and lost wages, as well as non-economic damages, which might include pain and suffering. The key aspect of compensatory damages is their focus on the real financial impact that the wrongful act has had on the plaintiff, ensuring that they are reimbursed for those quantifiable losses.

Punitive damages serve a different purpose; they are not intended to compensate the plaintiff for losses but rather to punish the wrongdoer and deter similar future conduct. Nominal damages are awarded in cases where a legal right has been violated but the plaintiff has not suffered a quantifiable loss. Liquidated damages arise from contractual agreements that stipulate a predetermined sum to be paid if a breach occurs, rather than compensating for actual losses suffered. Thus, compensatory damages are the appropriate type of damages that focus on reimbursing the plaintiff for their actual losses.