How do "liability" and "damages" differ?

The distinction between liability and damages is foundational in legal terms. Liability refers specifically to the legal responsibility of an individual or entity for their actions or omissions that cause harm or injury to another party. When a person or organization is found to have acted negligently or unlawfully, they may be considered liable for the consequences of those actions.

On the other hand, damages relate to the financial compensation that may be awarded to a plaintiff who has suffered loss or injury as a result of another’s liability. This compensation is intended to restore the injured party to a position as close as possible to where they would have been had the harm not occurred. Damages can take various forms including medical expenses, lost wages, and pain and suffering.

Understanding this distinction is crucial in various legal contexts, such as tort law, where determining liability can carry significant implications for the party found at fault and the corresponding damages the injured party may recover.