Compensatory damages are awarded to plaintiffs in order to bring them justice after they have been aggrieved. These damages are designed to compensate the victim of an injury for their losses, such as medical bills, property damage, and lost wages. On the other hand, punitive damages are designed to punish bad actors and set an example for them. Not all personal injury cases warrant punitive compensation, as the defendant must have demonstrated gross negligence or a deliberate disregard for the safety and welfare of others at the time of the accident.
The state of Florida currently does not have a damage limit for compensatory damages in personal injury cases; however, under Florida law, there are limitations to prevent punitive damages from becoming excessive. The purpose of compensatory damages is to place the injured party (plaintiff) in the same monetary situation as if the injury had never occurred, while punitive damages are awarded to punish the defendant (at-fault party). For example, if you were involved in a car accident that destroyed your vehicle, broke your collarbone and prevented you from working for six weeks while you were recovering, you would be compensated for property damage, medical expenses, and lost wages. To ensure that your case is filed before time expires, it's best to speak to an experienced personal injury lawyer as soon as possible. Compensatory damages can be awarded in almost any personal injury lawsuit that was created due to the negligence of another person or entity. If you can't reach a settlement with the at-fault party's insurance company, your lawyer may suggest that you file a formal lawsuit in court.
However, if you received compensation for emotional distress that involves physical symptoms (such as headaches caused by stress), the IRS considers this to be taxable income. In Louisiana, punitive damages are only available when authorized by law or when the defendant's actions are based on an unbridled or reckless disregard for the safety and rights of others, such as when a defendant causes injuries because he was driving while intoxicated. It is up to the court's discretion to decide how much should be paid. It is important to contact an experienced personal injury lawyer as soon as possible after your accident in order to ensure that your case is filed before time expires. Both compensatory and punitive damages are types of damages that the victim can recover after an accident; however, they have different effects on opposite sides of a personal injury lawsuit.