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In a legal case, damages refers to the money that you are seeking in order to compensate you for some legal wrong that was committed by the other party. The court may award you damages, which will be paid by the other side, if you can prove that you were harmed and the other party caused it.
Generally, there are two types of damages: compensatory and punitive. (The term "damages" typically includes both categories, but the term, "actual damages" is synonymous with compensatory damages, and excludes punitive damages.)
There are 3 types of damages in personal injury claims: economic damages, noneconomic damages, and punitive damages.