Which damages are actual losses incurred, such as lost earnings?

• A. General damages are actual losses incurred, such as lost earnings.
• B. Punitive damages are actual losses incurred, such as lost earnings.
• C. Nominal damages are actual losses incurred, such as lost earnings.
• D. Special damages are actual losses incurred, such as lost earnings.

Answer: (D)

This question tests how damages are categorized by measurability and actual losses. Special damages are the category that covers actual, monetary losses that can be quantified, such as lost earnings, medical bills, and property damage. Lost earnings represent concrete money lost due to the injury and can be supported with records like pay stubs, tax forms, or employer statements, making them a clear, calculable loss.

General damages cover non-economic harms like pain and suffering, which are real but not easily quantified in dollar terms. Punitive damages are intended to punish harmful conduct and aren’t tied to the claimant’s actual financial losses. Nominal damages acknowledge a legal violation when there’s little or no monetary loss, typically a very small amount.