Damage vs. Damages

Damage and damages are different meanings of the same word:

damage |ˈdamij| noun 1 physical harm caused to something in such a way as to impair its value, usefulness, or normal function. • unwelcome and detrimental effects : the damage to his reputation was considerable. 2 (damages) a sum of money claimed or awarded in compensation for a loss or an injury : she was awarded $284,000 in damages. [NOAD]

So when you say damages (meaning the noun) you are talking about money.

Simchona's friend is correct. Damage denotes inflicted, adversely destructive or deteriorative change to (mainly chattel) property in any amount or enumeration. Damages connotes a prospective legal claim for compensation of loss suffered in the form of property damage, as denoted, injury, monetary loss, and tortious victimization. "Damages" is exclusively a jurisprudential construct. Damage, per se, is both a singular and collective plural form.

In court one would say, "she is seeking damages for her broken leg"; or alternatively, "damages for repair of her car and replacing the new lamp damaged inside.

On the street one would say, she hopes insurance will pay her medical expenses as well as for damage to her car and new lamp.