DAMAGES

damages,n. pl. Money claimed by, or ordered to be paid to, a person as compensation for loss or injury <the plaintiff seeks $8,000 in damages from the defendant>. — damage,adj.“Damages  are  the  sum  of  money  which  a  person  wronged  is  entitled  to  receive  from  the wrongdoer as compensation for the wrong.” Frank Gahan, The Law of Damages 1 (1936). accumulative damages.Statutory damages allowed in addition to amounts available under the common law. — Also termed enhanced damages. actual  damages.An amount awarded to a complainant to compensate for a  proven injury  or loss; damages that repay actual losses. — Also termed compensatory damages; tangible damages; real damages. [Cases: Damages    15. C.J.S. Damages §§ 21–22.] added damages.See punitive damages. additional  damages.Damages  usu.  provided  by  statute  in  addition  to  direct  damages.  • Additional  damages  can  include  expenses  resulting  from  the  injury,  consequential  damages,  or punitive damages. benefit-of-the-bargain damages.Damages that a breaching party to a contract must pay to the aggrieved  party,  equal  to  the  amounts  that  the  aggrieved  party  would  have  received,  including profits, if the contract had been fully performed. — Also termed loss-of-bargain damages. [Cases: Damages    117.]compensatory  damages  (k<<schwa>>m-pen-s<<schwa>>-tor-ee).1.  Damages  sufficient  in amount   to   indemnify   the   injured   person   for   the   loss   suffered.   —   Often   shortened   to compensatories. 2. See actual damages. [Cases: Damages    15. C.J.S. Damages §§ 21–22.] consequential damages.Losses that  do  not  flow  directly  and  immediately  from  an  injurious act but that result indirectly from the act. [Cases: Damages    15–25. C.J.S. Damages §§ 21–38, 42; Parent and Child § 344.] contemptuous damages.See nominal damages. continuing damages. 1. Damages arising from the same injury. 2. Damages arising from the repetition of similar acts within a definite period. cosmetic damages.The amount awarded to compensate for personal disfigurement. damages for lost expectations.See expectation damages. damages ultra (<<schwa>>l-tr<<schwa>>). Additional damages claimed by a plaintiff who is  not satisfied with the amounts the defendant paid into court. direct damages.See general damages. discretionary  damages.Damages (such as  mental anguish or pain and suffering) that are not precisely  measurable  but  are  determined  by  the  subjective  judgment  of  a  jury.  —  Also  termed indeterminate damages. double  damages.Damages  that,  by  statute,  are  twice  the  amount  that  the  fact-finder determines  is  owed  or  twice  the  amount  of  actual  damages  awarded.  •  In  some  cases,  double damages are awarded in addition to actual damages, so the effect is the same as treble damages. [Cases: Damages    227. C.J.S. Damages §§ 218–219, 383.] enhanced   damages.   1.   See   accumulative   damages.   2.Patents.   Damages   for   patentinfringement in an amount up to three times that of compensatory damages, at the discretion of thecourt,  based  on  the  egregiousness  of  the  defendant’s  conduct,  including  the  willfulness  of  theinfringement. [Cases: Patents    319(3). C.J.S. Patents § 569.] estimated damages.See liquidated damages. excess  damages.Damages  awarded  to  an  insured  —  beyond  the  coverage  provided  by  an insurance policy — because the insurer did not settle the claim within policy limits. • If the insurer acted in bad faith in not settling, the insured may have a claim to recover the excess damages from the  insurer.  —  Also  termed  excess-liability  damages. [Cases:  Insurance    3350.  C.J.S.  Insurance §§ 1160–1163, 1342.] excessive damages.A jury award that grossly exceeds the amount warranted by law based on the facts and circumstances of the case; unreasonable or outrageous damages, which are subject to reduction  by  remittitur.  See  REMITTITUR.  [Cases:  Damages    127–140.  C.J.S.  Damages  §§384–385, 387–394; Parent and Child § 344.] exemplary damages.See punitive damages. expectation  damages.Compensation  awarded  for  the  loss  of  what  a  person  reasonably anticipated  from  a  transaction  that  was  not  completed.  —  Also  termed  expectancy  damages; lost-expectation  damages; damages for lost expectations. [Cases: Damages    23. C.J.S. Damages §§ 28–33.] fee  damages.Damages  awarded  to  the  owner  of  abutting  property  for  injury  caused  by  the construction and operation of an elevated railroad. • The term is used because the damage is to the property owner’s easements of light, air, and access, which are parts of the fee. foreseeable  damages.Damages  that  a  breaching  party  knew  or  should  have  known  would result  from  a  breach  when  the  contract  was  made.  [Cases:  Damages    21.  C.J.S.  Damages  §§ 30–33.] future  damages.Money  awarded  to  an  injured  party  for  an  injury’s  residual  or  projected effects, such as those that reduce the person’s ability to function. • Examples are expected pain andsuffering,  loss  or  impairment  of  earning  capacity,  and  projected  medical  expenses.  [Cases: Damages    25. C.J.S. Damages § 42.] general damages.Damages that the law presumes follow from the type of wrong complained of;  specif., compensatory  damages  for  harm  that  so  frequently  results from  the  tort  for  which  a party has sued that the harm is reasonably expected and need not be alleged or proved. • General damages  do  not  need  to  be  specifically  claimed.  —  Also  termed  direct  damages;  necessary damages. [Cases: Damages    5. C.J.S. Damages §§ 3–6.] gross damages.The total damages found before adjustments and offsets. hedonic  damages  (hi-don-ik).  Damages  that  attempt  to  compensate  for  the  loss  of  the pleasure  of  being  alive.  •  Such  damages  are  not  allowed  in  most  jurisdictions.  —  Also  termed (erroneously)  hedonistic  damages.  [Cases:  Damages    48–56.20.  C.J.S.  Damages  §§  94–104; Parent and Child § 344; Torts §§ 66–83.] imaginary damages.See punitive damages.  inadequate damages.Damages insufficient to fully and fairly compensate the parties; damages bearing no reasonable relation to the plaintiff’s injuries, indicating prejudice, mistake, or other fact to support setting aside a jury’s verdict. [Cases: Damages    127–140. C.J.S. Damages §§ 384–385, 387–394; Parent and Child § 344.] incidental damages. 1. Losses reasonably associated with or related to actual damages. 2. A seller’s  commercially  reasonable  expenses  incurred  in  stopping  delivery  or  in  transporting  andcaring  for  goods  after  a  buyer’s  breach.  UCC  §  2-710.  [Cases:  Sales    384(4).]  3.  A  buyer’s expenses reasonably incurred in caring for goods after a seller’s breach. UCC § 2-715(1). [Cases: Sales    418(19). C.J.S. Sales §§ 396, 400–401, 404–405.] “What are incidental damages? The Code does not define incidental damages; rather 2–715(1) lists  many  expenses  that  are  included  as  incidental  damages.  However,  Comment  1  to  2–715 stresses  that  those  listed  ‘are  not  intended  to  be  exhaustive’  but  are  merely  illustrative  of  the typical kinds of incidental expenses that can be recovered under 2–715: (1) those associated withrightful  rejection  (for  instance,  inspection  and  storage);  (2)  those  associated  with  a  proper revocation of acceptance; and (3) those involved in effecting cover.” 1 James J. White & Robert S.

Summers, Uniform Commercial Code § 10-3, at 561–62 (4th ed. 1995).

indeterminate damages.See discretionary damages.

intervening damages.Continuing damages that accrue during the pendency and prosecution of

an unsuccessful appeal. • A lower court may include intervening damages in an award.

irreparable damages (i-rep-<<schwa>>-r<<schwa>>-b<<schwa>>l). Damages that cannot be

easily ascertained because there is no fixed pecuniary standard of measurement, e.g., damages for

a repeated public nuisance. — Also termed nonpecuniary damages.

land damages.See just compensation under COMPENSATION.

lawful damages.Those damages fixed by law and ascertained in a court of law.

liquidated  damages.An  amount contractually  stipulated  as  a  reasonable estimation  of  actual

damages to be recovered by one party if the other party breaches. • If the parties to a contract have

properly  agreed  on  liquidated  damages,  the  sum  fixed  is  the  measure  of  damages  for  a  breach,

whether  it  exceeds  or  falls  short  of  the  actual  damages.  —  Also  termed  stipulated  damages;

estimated   damages.   See   LIQUIDATED-DAMAGES   CLAUSE.   Cf.   unliquidated   damages;

PENALTY CLAUSE. [Cases: Damages    74–84. C.J.S. Damages §§ 175–179, 184–194.]

“Where the terms of a contract specify a sum payable for non-performance, it is a question of

construction  whether  this  sum  is  to  be  treated  as  a  penalty  or  as  liquidated  damages.  The

difference in effect is this: The amount recoverable in case of a penalty is not the sum named, but

the damage actually incurred. The amount recoverable as liquidated damages is the sum named as

such.  In construing these terms a judge will not accept the  phraseology  of the parties; they  may

call the sum specified ‘liquidated damages,’ but if the judge finds it to be a penalty, he will treat it

as such.” William R. Anson, Principles of the Law of Contract 470 (Arthur L. Corbin ed., 3d Am. ed. 1919).

 

 

 

“The distinction between a penalty and genuine liquidated damages, as they are called, is not

always easy to apply, but the Courts have made the task simpler by laying down certain guiding

principles. In the first place, if the sum payable is so large as to be far in excess of the probable

damage  on breach, it is almost certainly a penalty. Secondly, if the same sum is expressed to be

payable on any one of a number of different breaches of varying importance, it is again probably a

penalty, because it is extremely unlikely that the same damage would be caused by these varying

breaches. Thirdly, where a sum is expressed to be payable on a certain date, and a further sum in

the  event  of  default being  made, this latter  sum  is  prima  facie  a  penalty,  because  mere  delay  in

payment  is  unlikely  to  cause  damage.  Finally,  it  is  to  be  noted  that  the  mere  use  of  the  words

‘liquidated damages’ is not decisive, for it is the task of the Court and not of the parties to decide

the true nature of the sum payable.” P.S. Atiyah, An Introduction to the Law of Contract 316–17

(3d ed. 1981).

loss-of-bargain damages.See benefit-of-the-bargain damages.

lost-expectation damages.See expectation damages.

moratory  damages  (mor-<<schwa>>-tor-ee  ormahr-).Civil  law.  Damages  for  a  delay  in

performing an obligation. La. Civ. Code arts. 1989, 1994. • There must be a default before these

damages  can  be  recovered,  while  compensatory  damages  are  recoverable  both  for  a  failure  of

performance and for a defective performance.

multiple damages.Statutory damages (such as double or treble damages) that are a multiple of

the amount that the fact-finder  determines to be  owed.  —  Also termed  multiplied  damages. See

double damages; treble damages. [Cases: Damages    227. C.J.S. Damages §§ 218–219, 383.]

“[T]he  statutory  multiple  damages  differ  from  the  common  law  punitive  damages  in  that

punitive  damages involved  no  fixed  sum  or  limit. The  fixed  limit  of  multiple  damages not  only

reduces their threat to the defendant and the potential for abuse, it also reduces the possibility of a

measured  deterrence.  Likewise,  because  the  enhancement  of  the  award  is fixed  by  the  statutory

multiple, there is no occasion for introducing evidence of the defendant’s wealth as there is in the

case of  common  law  punitive  damages ….  Perhaps a  more important distinction  is that  multiple

damages statutes may be enacted for entirely non-punitive purposes. Specifically, some double or

treble  damages  statutes,  and  also  specified  ‘civil  penalties,’  are  intended  to  provide  a  kind  of

liquidated damages for actual losses that cannot be proved or that are otherwise unrecognized by

the law.” Dan B. Dobbs, Law of Remedies § 3.12, at 359 (2d ed. 1993).

necessary damages.See general damages.

nominal damages. 1. A trifling sum awarded when a legal injury is suffered but when there is

no substantial loss or injury to be compensated. 2. A small amount fixed as damages for breach of

contract  without  regard  to  the  amount  of  harm.  —  Also  termed  contemptuous  damages.  Cf.

substantial damages. [Cases: Damages    8–14. C.J.S. Damages §§ 3, 12–20.]

“Nominal damages are damages awarded for the infraction of a legal right, where the extent

of the loss is not shown,  or where the right is one  not dependent upon loss or damage, as in the case of rights of bodily immunity  or rights to  have  one’s  material property undisturbed by direct

invasion. The award of nominal damages is made as a judicial declaration that the plaintiff’s right

has been violated.” Charles T. McCormick, Handbook on the Law of Damages § 20, at 85 (1935).

“Nominal damages are awarded if the plaintiff establishes a breach of contract or a tort of the

kind that is said to be ‘actionable per se’ but fails to establish a loss caused by the wrong. In the

case of tort not actionable per se as, for example, negligence, if the plaintiff fails to establish a loss,

the action will be dismissed. The practical significance of a judgment for nominal damages is that

the plaintiff thereby establishes a legal right. The judgment has the effect of a declaration of legal

rights and  may  deter  future  infringements or  may  enable the  plaintiff  to  obtain  an  injunction  to

restrain  a  repetition  of  the  wrong.  The  obtaining  of  nominal  damages  will  also,  in  many  cases,

entitle a plaintiff to costs …. [Also,] nominal damages might serve as a peg upon which to hang an

award of exemplary damages.” S.M. Waddams, The Law of Damages 477–78 (3d ed. 1997).

nonpecuniary   damages.Damages   that   cannot  be   measured  in   money.  See   irreparable

particular damages.See special damages.

pecuniary  damages  (p<<schwa>>-kyoo-nee-er-ee).  Damages  that  can  be  estimated  and

monetarily  compensated.  •  Although  this  phrase  appears  in  many  old  cases,  it  is  now  widely

considered a redundancy — since damages are always pecuniary.

permanent  damages.Damages  for  past,  present,  and  future  harm  that  cannot  be  avoided  or

presumptive damages.See punitive damages.

prospective  damages.Future  damages  that,  based  on  the  facts  pleaded  and  proved  by  the

plaintiff, can reasonably be expected to occur. [Cases: Damages    25. C.J.S. Damages § 42.]

proximate  damages.Damages  directly,  immediately,  and  naturally  flowing  from  the  act

complained  of.  Cf.  speculative  damages  (1).  [Cases:  Damages    18.  C.J.S.  Damages  §§  23–25,

27.]

punitive damages.Damages awarded in addition to actual damages when the defendant acted

with  recklessness,  malice,  or  deceit;  specif.,  damages  assessed  by  way  of  penalizing  the

wrongdoer or making an example to others. • Punitive damages, which are intended to punish and

thereby  deter  blameworthy  conduct,  are  generally  not  recoverable  for  breach  of  contract.  The

Supreme Court  has held that three  guidelines help  determine  whether a punitive-damages award

violates constitutional due process: (1) the reprehensibility of the conduct being punished; (2) the

reasonableness of the relationship between the harm and the award; and (3) the difference between

the award and the civil penalties authorized in comparable cases. BMW of North America, Inc. v.

Gore,  517  U.S.  559,  116  S.Ct.  1589  (1996).  —  Also  termed  exemplary  damages;  vindictive

damages;  punitory   damages;   presumptive   damages;   added   damages;  aggravated   damages;

speculative damages; imaginary damages; smart money; punies. [Cases: Damages    87–94. C.J.S.

Damages §§ 183, 195–217.]

 

“Although  compensatory  damages and  punitive damages  are typically  awarded  at  the  same

time by the same decisionmaker, they serve distinct purposes. The former are intended to redress

the concrete loss that the plaintiff has suffered by reason of the defendant’s wrongful conduct. The

latter, which have been described as ‘quasi-criminal,’ operate as ‘private fines’ intended to punish

the  defendant  and  to  deter  future  wrongdoing.  A  jury’s  assessment  of  the  extent  of  a  plaintiff’s

injuries  is  essentially  a  factual  determination,  whereas  its  imposition  of  punitive  damages  is  an

expression of its moral condemnation.” Cooper Indus. v. Leatherman Tool, 532 U.S. 424, 432, 121

S.Ct. 1678, 1683 (2001)(per Stephens, J.).

real damages.See actual damages.

reliance  damages.Damages  awarded  for  losses  incurred  by  the  plaintiff  in  reliance  on  the

contract. [Cases: Damages    22.]

“Reliance  damages  are  …  ‘real’  losses  in  a  much  more  tangible  way  than  losses  of

expectations.  The  distinction  is  nicely  illustrated  by  McRae  v.  Commonwealth  Disposals

Commission…. In this case, … the defendants sold a shipwrecked tanker which they advertised as

lying on a certain reef in the Pacific, and the plaintiffs spent a substantial sum of money equipping

a  salvage  expedition  to  go  in  search  of  the  ship.  The  ship  was  wholly  non-existent,  and  the

plaintiffs  were  held  entitled  to  damages.  Here  it  was  clear  that  the  plaintiffs  had  incurred

substantial expenses — real losses — in reliance on the  contract, and the Australian High Court

awarded  these  reliance  damages  to  the  plaintiffs.”  P.S.  Atiyah,  An  Introduction  to  the  Law  of

Contract 311 (3d ed. 1981).

reliance-loss  damages.A  reimbursement  for  losses  or  expenses  that  the  plaintiff  suffers  in

reliance on the defendant’s contractual promise that has been breached.

remote damages.See speculative damages (1).

rescissory  damages  (ri-sis-<<schwa>>-ree  or  ri-siz-).  Damages  contemplated  to  restore  a

plaintiff to the position occupied before the defendant’s wrongful acts.

restitution  damages.Damages  awarded  to  a  plaintiff  when  the  defendant  has  been  unjustly

enriched at the plaintiff’s expense.

“Suppose  A  pays  money  to  B  in  pursuance  of  a  contract  which  turns  out  to  be  void,  or

perhaps is subsequently frustrated: clearly A cannot sue  B for breach  of contract. B’s promise to

perform  his  side  of  the  bargain  is  vitiated  by  the  mistake  or  the  frustrating  event,  so  A’s  lost

expectations are losses which he must just put up with. But his claim to repayment of the money is

evidently much stronger: for this money is a tangible loss to A and a tangible enrichment to B. So

in this sort of case the money will often be recoverable, though English lawyers think of this as a

quasi-contractual  claim  to  recover  money  as  on  a  total  failure  of  consideration,  and  not  a

contractual claim to restitution  damages. There is, however, no strong reason for refusing to call

this  a  contractual  action,  any  more  than  there  is  a  reason  for  calling  an  action  for  damages

quasi-contractual.” P.S. Atiyah, An Introduction to the Law of Contract 312 (3d ed. 1981).

severance  damages.In  a  condemnation  case,  damages  awarded  to  a  property  owner  for

 

 

 

diminution in the fair market value of land as a result of severance from the land of the property

actually condemned; compensation awarded to a landowner for the loss in value of the tract that

remains  after  a  partial  taking  of  the  land.  [Cases:  Eminent  Domain    95–96.  C.J.S.  Eminent

Domain §§ 84, 86, 105, 126–127, 142, 147, 152–153.]

special damages.Damages that are alleged to  have been  sustained in the circumstances of a

particular wrong. • To be awardable, special damages must be specifically claimed and proved. —

Often shortened to specials. — Also termed particular damages. See Fed. R. Civ. P. 9(g). [Cases:

Damages    5. C.J.S. Damages §§ 3–6.]

speculative damages. 1. Damages that are so uncertain to occur that they will not be awarded.

— Also termed remote damages. 2. See punitive damages.

statutory  damages.Damages  provided  by  statute  (such  as  a  wrongful-death-and-survival

statute), as distinguished from damages provided under the common law. [Cases: Death    80.]

stipulated damages.See liquidated damages.

substantial  damages.A  considerable  sum  awarded  to  compensate  for  a  significant  loss  or

injury. Cf. nominal damages. [Cases: Damages    6, 10. C.J.S. Damages §§ 38–41, 299.]

“Substantial damages … are the result of an effort at  measured compensation, and are to be

contrasted  with  nominal  damages  which  are  in  no  sense  compensatory,  but  merely  symbolic.”

Charles T. McCormick, Handbook on the Law of Damages § 20, at 85 (1935).

 

tangible damages.See actual damages.

temperate damages.Rare. Reasonable damages.

temporary  damages.Damages  allowed  for  an  intermittent  or  occasional  wrong,  such  as  a

real-property  injury  whose  cause  can  be  removed  or  abated.  [Cases:  Damages    39.  C.J.S.

Damages § 57.]

treble  damages.Damages  that,  by  statute,  are  three  times  the  amount  that  the  fact-finder

determines is owed. — Also termed triple damages. [Cases: Damages    227. C.J.S. Damages §§

218–219, 383.]

uncertain  damages.Damages  that  are  not  clearly  the  result  of  a  wrong.  •  The  rule  against

allowing recovery  of  uncertain  damages refers to these  damages, not damages that are uncertain

only in amount. [Cases: Damages    6. C.J.S. Damages §§ 38–41, 299.]

unliquidated  damages.Damages that  cannot be  determined  by  a  fixed  formula  and  must be

established  by  a  judge  or  jury.  Cf.  liquidated  damages.  [Cases:  Damages    1,  6,  194.  C.J.S.

Damages §§ 1–2, 4–6, 38–41, 299.] vindictive damages.See punitive damages.