Compensatory damages are damages awarded for civil cases, it is awarded to the succesful party, in the case of the plaintiff, it is awarded as a compensation for the pain undegone and also in most cases is included the legal services payment, however if it is the defendant that wins the case, then it is awarded for legal services and all hardships undergone during the trial.
It is a fundamental aspect of tort tort, in law, the violation of some duty clearly set by law, not by a specific agreement between two parties, as in breach of contract.
Liability is not always the result of an intentionally damaging act or of some proven fault like negligence negligence, in law, especially tort law, the breach of an obligation (duty) to act with care, or the failure to act as a reasonable and prudent person would under similar circumstances.
For a plaintiff to recover damages, this action or failure must be the "proximate cause" of an injury, and actual loss must occur.