Compensation vs. Restitution—Which Will Your Case Involve?

Whether someone broke a contract with you, took something of value, injured you, or damaged your property, getting financial recompense is often the only remedy available through the courts. But will that include compensation or restitution? The answer depends on the case itself. Here's what every victim needs to know about these two approaches to making you whole again. 



What Is Compensation?

Civil lawsuit compensation awards seek to make the victim whole by compensating them for what they lost. They are awarded by the jury and only enforced or subjected to legal limits by the judge. There is a lot of leeway in how compensation is calculated and awarded. 

Compensation is divided into different categories based on what it is intended to compensate for. Economic damages are actual costs incurred due to the other party's actions. You may be compensated for things like lost wages, medical expenses, permanent mobility aids, or property damage. Noneconomic damages compensate for intangible things like lower future earning potential or loss of consortium with family members.

 A more nebulous form of compensation is punitive damages. These damages awards are not based on compensating for what you lost but rather on how the jury wants to punish or penalize the liable party. 

What Is Restitution?

Restitution, on the other hand, can either be part of a criminal case or certain civil ones.

The judge orders criminal restitution as part of the sentencing phase of a trial after the jury has done their part by reaching a verdict. Criminal restitution is much more limited in intent and methodology than compensation. Its goal is to return what was taken from victims of a crime and to prevent the convicted person from unjustly enriching themselves at the expense of others.

You may also receive civil restitution in a lawsuit for unjust enrichment. One of the most common applications is in contract law. When one party has received benefit from the contract while the other doesn't receive any benefit, the first party has been unjustly enriched. The court may order them to return the equivalent of that unjust enrichment as restitution. 

Which Will You Receive?

Most civil lawsuits involve compensation, and most criminal cases involve restitution. So if you're pursuing a case solely in civil court—such as personal injury—you may only deal with compensation. And if you forgo a civil lawsuit and rely on the criminal trial, you would likely only see restitution. 

However, some situations include both. For instance, consider a person whose ex broke into their car and stole an expensive urn with the ashes of the owner's grandmother. If the ex is found guilty of theft or breaking in, the judge may order criminal restitution for the value of the urn and property damage. But the owner may sue in civil court for noneconomic damages related to the intangible loss of the ashes. 

This example demonstrates how the limitations of criminal restitution often mean that the victim must pursue a civil lawsuit as well. And even if you receive civil restitution—like a broken contract—you may also need to seek compensation to account for non-economic damages suffered as a result of the defendant's actions. 

No matter which type of damages you seek, the best place to begin is to meet with Gayheart and Willis, P.C. We assist our Virginia neighbors and local businesses with all their legal needs, including both criminal and civil cases. We can help you evaluate your options for getting back what you lost and find the best path to success possible. Call today to make an appointment or get more answers to your questions.