What is the goal of compensatory damages?

The goal of compensatory damages is to make the injured party whole. This concept is rooted in the principle of restitution, where the aim is to restore the injured party to the financial position they would have been in had the wrongful act not occurred. Compensatory damages cover actual losses incurred by the victim, such as medical expenses, lost wages, and pain and suffering.

When a plaintiff successfully claims compensatory damages, it signifies that the court recognizes the need to provide financial restitution for the damages suffered, rather than imposing penalties on the wrongdoer or serving as a deterrent for future actions. Therefore, the primary focus is on rehabilitation rather than punishment, aligning with the objective of ensuring that the victim is compensated fairly for their losses, which is reflected in the correct answer.