Black's Law Dictionary (2nd edition)dictionaries

Compensation

Indemnification; payment of damages; making amends; that which is necessary to restore an injured par-ty to his former position. An act which a court orders to be done, or money which a court 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

Source: Black's Law Dictionary 2nd Ed (1910)