Damages are sometimes discounted to prevent the plaintiff from receiving a windfall by collecting in the present for future damages.

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Damages are often discounted to present value in legal judgments to ensure that the plaintiff is not overcompensated for future losses or damages that have not yet occurred, preventing a windfall. This is a common practice in personal injury, wrongful death, and contract cases, among others, where future economic damages (like lost future earnings or future medical expenses) are awarded.

Damages Are Sometimes Discounted to Prevent the Plaintiff from Receiving