These are not automatic payments, funeral reimbursement only, or a criminal fine paid because someone died. They are the money damages allowed in a civil case when a death was caused by another party's wrongful act, neglect, or default. Depending on state law, they can cover economic losses such as lost income, medical bills, and funeral expenses, along with non-economic losses such as lost companionship, guidance, and the value of the life that was taken.

In New Mexico, wrongful death damages are governed by the Wrongful Death Act, NMSA 1978, §§ 41-2-1 to 41-2-4. A claim must generally be filed within 3 years of the death under § 41-2-2. The lawsuit is brought by the decedent's personal representative, but the recovery is distributed to statutory beneficiaries named by the Act. New Mexico allows a broad measure of damages, including medical and funeral expenses, the decedent's pain and suffering between injury and death when supported by the evidence, lost earnings and earning capacity, and the value of the decedent's life apart from wages alone.

For an injury claim that becomes fatal, the category and amount of wrongful death damages often determine overall case value. New Mexico is a pure comparative fault state, so if the decedent was partly at fault, the award is reduced by that percentage rather than barred entirely. In a hospital or roadway death, that percentage can materially change the final recovery.