All states measure damages or claims against a certain dollar limit. Among the states, the limit on the amount of money sought by a plaintiff may be as low as $1,500 or as high as $25,000, as of 2011. The amount of damages payable by a defendant usually depends on the judge's assessment of the extent of the injury or harm incurred. While filing for damages, the plaintiff should assess the approximate amount of damages he has incurred as a result of the defendant's actions.
Compensatory damages are paid out to cover for the injury or loss suffered by the plaintiff. For example, the loss or injury may be as a result of using an appliance that was not functioning properly or from an automobile injury. The defendant only pays this claim but she cannot be compelled by the court to fix the appliance or the automobile. The amount payable as compensatory damages depends on the assessment of how much harm or loss has occurred.
Liquidated damages are especially applicable when a contract or service agreement is breached by either party. It can be difficult to approximate the amount of damages incurred by the breach of a contract. In awarding liquidated damages, the court looks at the nature of the contract, its provisions and the intention of the party who breached the contract. Intentional breach of a contract may cause the court to order the defendant to pay liquidated damages.
Treble damages are regulated by state laws in very specific cases such as failing to recover a bad check issued to someone or intentional failure by a tenant to pay security deposit or rent. Treble damages involve the tripling of the actual amount of damages payable to the plaintiff. The court may award this type of damage to deter the defendant from further engaging in the acts that brought him to court in the first place.