Civil litigation provides people and businesses with options when another party does something damaging and inappropriate. Personal injury lawsuits may follow car crashes, criminal activity or incidents caused by unsafe property conditions.
Contract litigation may be the best means of addressing the harm caused by a breach of contract. Plaintiffs may seek financial relief through the courts for the losses they experienced due to another party’s actions, negligence or omissions.
There are several types of financial relief that the civil courts can provide to plaintiffs during civil litigation if they are successful. Frequently, financial compensation comes from either penalties or damages. Understanding the difference between the two is important for those evaluating their options.
Damages relate to losses
The civil damages sought in a personal injury lawsuit could add up to hundreds of thousands of dollars or even more, depending on the circumstances. Plaintiffs can request compensation for injuries, lost income and property damage expenses.
Some types of lawsuits also allow plaintiffs to request non-economic damages. State statutes may also allow plaintiffs to request punitive or exemplary damages in a lawsuit. Punitive damages are funds collected as a punishment for the defendant and do not have a basis in the losses of the plaintiff.
Penalties are different. Those suing over a breach of contract may request that the courts award them specific penalties based on the terms of the initial agreement. Penalty clauses can impose specific financial consequences for late payments and other violations of an agreement.
Reviewing a situation that requires court intervention with a skilled legal team can help plaintiffs determine what forms of financial relief they can request. Seeking damages and collecting penalty fees can both be possible during successful civil litigation.