When the jury determined that the plaintiff had compensatory damages in the amount of $200,000 but would only be able to recover $160,000 of those damages, it was applying the legal theory of:

Damages in tort

Explanation:

Damages are remedies that are monetary which are paid to a claimant to compensate for a loss or injury. To get the reward, the claimant must reveal that a foreseeable loss is caused by breach of duty. To be approved at law, the loss must be due to physical or mental injury or damage to property.

Damages are either classified as compensatory or punitive damages. Compensatory damages are also categorized into special damages and general damages. Special damages are property damage, loss of earnings and medical expenses, and general damages damages such as suffering and pain.