First Principles of Business Law
Remedies in tort

3. Compensatory damages

3.1. The objective of compensatory damages

 

 

 

Damages are described as compensatory when the aim of awarding them is to compensate the plaintiff for some harm or loss they have suffered. Under the common law, compensatory damages are awarded to the extent necessary to put the party who has been injured, or who has suffered harm, in the same position as they would have been had the defendant's tortious conduct not occurred. This broad principle can result in very substantial damages being awarded.

State and territory legislation now sets out detailed rules for quantifying (and in some cases limiting) awards of damages. The provisions of Parts 2 - 11 Civil Liability Act 2002 (NSW) illustrate the various situations that are provided for.

  • personal injury damages
  • damages for mental harm
  • proportionate liability
  • the relevance of self defence
  • the recovery of damages by criminals

The details of these provisions (and equivalent provisions in the legislation of the other states and territories) are beyond the scope of this work, but should be reviewed selectively as required.

 

 

 

 

 

 

 

 

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