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Compensatory damages are a form of monetary compensation awarded to a plaintiff in a lawsuit for the actual losses incurred due to wrongful actions of another party. These damages aim to restore the injured party to the position they were in before the harm occurred, covering both economic losses, such as lost wages and medical expenses, as well as non-economic losses, like pain and suffering. Understanding compensatory damages is crucial in cases of libel and defamation, where the affected individual seeks justice for reputational harm.
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