Products liability damages (due to design defect or a failure to warn) are intended to compensate so as to restore the injured party to its position, but-for the defect. For example, in a business-to-business proceeding, damages can therefore include the plaintiff’s costs expended to mitigate the harm plus any lost profits due to factors such as lost sales or price erosion. An injured consumer can recover medical costs plus lost earnings and other costs such as property damage. Some jurisdictions allow “non-economic” damages for factors such as pain and suffering.
Punitive or exemplary damages can be assessed in certain conditions (such as willfulness or a repeated pattern of conduct) in order to punish the defendant and deter other potential tortfeasors.