Law Society of Ontario (LSO) Paralegal Practice Exam

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What are Compensatory/Actual Damages intended to address?

Emotional distress of the plaintiff
Actual loss sustained by the injured party
Punishment for severe misconduct of the defendant
Symbolic redress for infringement of rights

The correct answer is: Actual loss sustained by the injured party

Compensatory or actual damages are primarily designed to reimburse the injured party for the actual losses they have sustained as a result of the defendant's actions. This type of damage aims to restore the plaintiff, as much as possible, to the financial position they were in prior to the injury or loss. These damages encompass various forms of economic loss, including lost wages, medical expenses, property damage, and any other quantifiable financial impacts caused by the defendant's conduct. The focus is on providing tangible compensation that reflects the real losses experienced, rather than addressing emotional aspects or serving as punishment for the defendant. In contrast, options related to emotional distress, punitive measures, or symbolic recognition of rights highlight different objectives and categories of damage that do not specifically pertain to the financial reparation for actual losses sustained.