What is the main goal of compensatory damages?

The primary purpose of compensatory damages is to restore the injured party to the position they were in prior to the injury or loss. This form of damages is aimed at compensating victims for their actual losses incurred, which may include economic losses such as medical expenses, lost wages, and property damage, as well as non-economic losses like pain and suffering. The idea is to make the injured person "whole" again, financially speaking, by covering the costs and losses resulting directly from the incident that caused harm.

While deterrence, legal precedent, and punitive consequences can play a role in overall legal frameworks, they do not capture the fundamental purpose of compensatory damages, which is solely focused on restitution for the injured party.