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  • Indemnification; payment of damages; making amends; making whole
  • Giving an equivalent or substitute of equal value; that which is necessary to restore an injured party to his former position; consideration or price of a privilege purchased; equivalent in money for a loss sustained; equivalent given for property taken or for an injury done to another
  • Giving back an equivalent in either money which is but the measure of value, or in actual value otherwise conferred; recompense in value; recompense or reward for some loss, injury, or service, especially when it is given by statute; remuneration for the injury directly and proximately caused by a breach of contract or duty; remuneration or satisfaction for injury or damage of every description; that return which is given for something else.
  • An act which a court orders to be done, or money which a court or other tribunal orders to be paid, by a person whose acts or omissions have caused loss or injury to another, in order that thereby the person damnified may receive equal value for his loss, or be made whole in respect of his injury. Railroad Co. v. Denman, 10 Minn. 280 (Gil. 208) ; Hughson Condensed Milk Co. v. State Board of Equalization, 23 Cal.App.2d 281, 73 P.2d 290, 292.
  • "Compensation" is a misleading term, and is used merely for lack of a word more nearly expressing the thought of the law which permits recovery for an imponderable and intangible thing for which there is no money equivalent. Stutsman v. Des Moines City Ry. Co., 180 Iowa, 524, 163 N.W. 580, 585.
  • The word "compensation," as used in Workmen's Compensation Acts, means the money relief afforded an injured employee or his dependents according to the scale established and for the persons designated in the act, and not the compensatory damages recoverable in an action at law for a wrong done or a contract broken. Christensen v. Morse Dry Dock & Repair Co., 214 N.Y.S. 732, 740, 216 App. Div. 274.
  • As used in Workmen's Compensation Acts, "compensation" is distinguishable from "benefits" ; the former applying to an allowance where the employee is only injured, and the latter applying in case of death. Terry v. General Electric Co., 232 N.Y. 120, 133 N.E. 373, 374. The term "compensation" may include ftlneral benefits. Donoho v. Atlantic Basin Iron Works, 206 N.Y.S. 494, 495, 210 App. Div. 535. But see Barber v. Estey Organ Co., 100 Vt. 72, 135 A. 1, 2; Industrial Commission v. Hammond, 77 Colo. 414, 236 P. 1006, 1008.
  • Also that equivalent in money which is paid to the owners and occupiers of lands taken or injuriously affected by the exercise of the power of eminent domain. Louisiana and F. Plank Road Co. v. Pickett, 25 Mo. 535, 539; Oregon Short Line R. Co. v. Fox, 28 Utah 311, 78 P. 800, 801.
  • In the constitutional provision for "just compensation" for property taken under the power of eminent domain, this term means a payment in money. Any benefit to the remaining property of the owner, arising from public works for which a part has been taken, cannot be considered as compensation. Railroad Co. v. Burkett, 42 Ala. 83.
  • As compared with consideration and damages, compensation, in its most careful use, seems to be between them. Consideration is amends for something given by consent, or by the owner's choice. Damages is amends exacted from a wrong-doer for a tort. Compensation is amends for something which was taken without the owner's choice, yet without commission of a tort. Thus, one should say, consideration for land sold; compensation for land taken for a railway; damages for a trespass. But such distinctions are not uniform. Land damages is a common expression for compensation for lands taken for public use. Abbott.
  • "Compensation" is distinguishable from "damages," inasmuch as the former may mean the sum which will remunerate an owner for land actually taken, while the latter signifies an allowance made for injury to the residue: but such distinction is not ordinarily observed. Faulkner v. City of Nashville, 154 Tenn. 145, 285 S.W. 39, 43
  • The remuneration or wages given to an employee or, especially, to an officer. Salary, pay, or emolument. Christopherson v. Reeves, 44 S‘ .D. 634, 184 N.W. 1015, 1019; Higgins v. Glenn, 65 Utah, 406, 237 P. 513, 515.
  • The ordinary meaning of the term "compensation," as applied to officers, is remuneration, in whatever form it may be given, whether it be salaries and fees, or both combined. State v. Bland, 91 Kan. 160, 136 P. 947, 949. It is broad enough to include other remuneration for official services; State ex rel. Emmons v. Farmer, 271 Mo. 306, 196 S. W. 1106, 1108; such as mileage or traveling expenses ; Leckenby v. Post Printing & Publishing Co., 65 Colo. 443, 176 P. 490, 492; and also the repayment of amounts expended. Compare, however, People v. Chapman, 225 N.Y. 700, 122 N.E. 240; McCoy v. Handlin, 35 S.D. 487, 153 N.W. 361, 371, L.R.A.1915E, 858, Ann.Cas.1917A, 1046.
  • But the term is not necessarily synonymous with "salary." See People v. Wemple, 115 N.Y. 302, 22 N.E. 272; Com. v. Carter, 21 Ky.L.Rep. 1509, 55 S.W. 701; Crawford County v. Lindsay, 11 Il1.App. 261; Kilgore v. People, 76 Ill. 548.
  • A "reasonable compensation" is that which will fairly compensate the laborer when the character of the work and the effectiveness and ability entering into the service are considered. Chapman v. A. H. Averill Machinery Co., 28 Idaho, 121, 152 P. 573, 575.
  • Compensation is not synonymous with "pension," which is ordinarily a gratuity from the government or some of its subordinate agencies in recognition of, but not in payment for, past services. Dickey v. Jackson, 181 Iowa 1155, 165 N.W. 387, 389.

Civil, Scotch, and French Law

Recoupment; set-off. The meeting of two debts due by two parties, where the debtor in the one debt is the creditor in the other; that is to say, where one person is both debtor and creditor to another, and therefore, to the extent of what is due to him, claims allowance out of the sum that he is due. Bell; 1 Kames, Eq. 395, 396.

In order for "compensation" to take place, the two debts must exist simultaneously and have as their object the payment of a sum of money or a certain quantity of consumable things of one and the same kind, and the debts must be equally liquidated and demandable. Blanchard v. Bank of Morgan City & Trust Co., La.App., 185 So. 120, 122.

Kinds of Compensation

Compensation is of three kinds,-legal, or by operation of law; compensation by way of exception; and by reconvention. Stewart v. Harper, 16 La.Ann. 181; Blanchard v. Cole, 8 La. 158; 8 Dig. 16, 2; Code, 4, 31; Inst. 4, 6, 30; Burge, Suret. b. 2, c. 6, p. 181; La.Civ. Code, arts. 2203- 2208 (Civ.Code, arts. 2207-2211).

Compensation as in Criminal Law

Recrimination is closest term to Compensation in Criminal Law.

"Commutation" and "compensation" in statutes providing for reduction of sentence for good behavior are used interchangeably. Ryan v. Lawes, 278 N.Y.S. 608, 154 Misc. 572.

Compensation in various legislation

  • The concept of Compensation is treated differently in different countries. Even in the same country, the Compensation mechanism will be different from one legislation to another. For example, the compensation under Employees Compensation Act, 1923 will be different from that of Torts.
    • The defence of valenti non fit injuria though not available under Torts is not available under Employees Compensation Act.
    • The defence of Contributory Negligence, inevitable accident or negligence of co-worker are not available under the provisions of compensation.
    • Once compensation is determined by the Commissioner on the basis of a medical certificate issued by a qualified medical practisioner, it cannot subsequently be upset on the ground that another doctor had after one and half years found some improvement in the injured organ of te workman. - Bharat Heavy Plates and Vessels Limited v Commissioner of WC (1953) ILL 477 (Ahmedabad)

Compensible Death

Within Workmen's Compensation Acts is one which results to employee from injury by accident arising out of and in course of employment. Slade v. Willis Hosiery Mills, 209 N.C. 823, 184 S.E. 844, 845.

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