Compensatory damages are those which the law considers sufficient to indemnify the person injured for the loss suffered.

In studying this definition, attention must be paid to the words, "which the law considers." What the law considers as full compensation is very often not full compensation in reality for the wrong suffered.

"It has been contended that the true measure of damages, in all actions of covenant, is the loss actually sustained. But this rule is laid down too generally. In an action of covenant for nonpayment of money on a bond or mortgage, no more than the principal and legal interest of the debt can be recovered, although the plaintiff may have suffered to a much greater amount by the default of payment." 1

"Every defendant against whom an action is brought experiences some injury or inconvenience beyond what the costs will compensate him for." 2

The principle might perhaps be stated as follows: Compensatory damages are such as will compensate the injured party for all losses, except those losses for which, on account of grounds of expediency or public policy, the law says that there shall be no recovery. Especially can no damages be recovered for losses which are the remote consequences of the wrongful act.3

1 Bender vs. Fromberger, 4 Dull., 436, 444.

2 Bron. Leg. Max., 199. 3 See Chapter III (Classification Of Consequences And Losses. Section 9. Proximate And Remote Consequences In General).