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Which of the following statements about damages in the tort of negligence is NOT correct?

  1. Special damages are awarded to an injured party for measurable losses.

  2. Compensatory damages is another term for punitive damages.

  3. General damages are awarded for pain and suffering that cannot be measured in dollars.

  4. Punitive damages are intended as a punishment for the defendant's deliberate actions.

The correct answer is: Compensatory damages is another term for punitive damages.

Compensatory damages are designed to make the injured party whole by covering both special and general damages. Special damages refer to specific, measurable losses such as medical expenses, lost wages, and property damage. General damages, on the other hand, are awarded for non-economic losses, such as pain, suffering, emotional distress, and loss of companionship, which cannot be easily quantified in monetary terms. Punitive damages are distinct from compensatory damages; they are awarded not to compensate the injured party, but to punish the defendant for particularly egregious behavior and to deter similar conduct in the future. This highlights the key difference: while compensatory damages aim to remedy the harm experienced by the plaintiff, punitive damages serve a different purpose entirely. Thus, describing compensatory damages as another term for punitive damages is inaccurate, making that statement the one which is not correct.