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'`Compensatory damages' are the damages awarded to a person as compensation, indemnity or restitution for harm sustained by him.' Restatement (Second) of Torts § 903 (1979). Compensatory damages are divided into two categories: pecuniary and non-pecuniary. Id. at §§ 905 and 906. Non-pecuniary compensatory damages include compensation for bodily harm and emotional distress, and are awarded without proof of pecuniary loss. Id. at § 905. It is well-understood that the term 'compensatory damages' includes non-pecuniary damages such as pain and suffering. For example, when Congress passed the Civil Rights Act of 1991, adding 42 U.S.C. § 1981a, it expressly provided for awards of 'compensatory and punitive damages' to employees prevailing on claims of discrimination. 42 U.S.C. § 1981a(a)(1). Congress provided a precise definition of 'compensatory and punitive damages' in the Civil Rights Act, listing 'future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, and other nonpecuniary losses' in the language of the statute itself, and then set limits on the amount that an award for these damages could total. 42 U.S.C. § 1981a(b)(3). 


Contract compensatory damages are designed 'to put the injured party in as good a position as he would have ...

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