What type of damages seeks to restore the injured party to the position they were in before the loss?

Compensatory damages are specifically aimed at restoring the injured party to the position they were in prior to the loss. This type of damage is intended to compensate individuals for actual losses or injuries they have suffered, whether these are economic (such as medical expenses or lost wages) or non-economic (such as pain and suffering). The core principle behind compensatory damages is to make the injured party "whole" again, financially speaking, following an event that has caused harm or loss.

By contrast, punitive damages are designed not to restore the injured party but to punish the wrongdoer for particularly egregious behavior and to deter similar misconduct in the future. General damages refer to compensation for non-monetary damages such as emotional distress, while nominal damages typically involve a small sum awarded to signify a legal wrong that did not incur substantial damages. Therefore, the focus of the question is on restoring the injured party’s prior state, which is the essence of compensatory damages.