Damages are the money a court awards. Picture two buckets: one holds money to make the victim whole (compensatory damages), and the other holds money to punish the wrongdoer (punitive damages).

Compensatory damages have two parts: - Special damages: measurable out-of-pocket losses, such as medical bills, lost earnings and repair costs. - General damages: losses that cannot be added up from receipts, such as pain and suffering. California Civil Code §1431.2(b) draws the same line under different names: economic damages (objectively verifiable monetary losses, including medical expenses, lost earnings and repair costs) and non-economic damages (subjective losses such as pain and suffering).

Worked example: $12,000 in medical bills + $5,000 in lost wages + $3,000 in car repairs = $20,000 of special damages. A $25,000 claim for pain and suffering is general damages. Total compensatory damages = $45,000.

Punitive damages: Civil Code §3294(a) allows them, in addition to actual damages, for the sake of example and to punish the defendant, in an action for breach of an obligation not arising from contract, when oppression, fraud or malice is proven by clear and convincing evidence. Their purpose is punishment, not reimbursement, so they neither pay bills nor replace general damages.