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damages definition
the amount of money which a plaintiff (the person suing) may be awarded in a lawsuit.
There are many types of damages. Special damages are those which actually were caused
by the injury and include medical and hospital bills, ambulance charges, loss of
wages, property repair or replacement costs or loss of money due on a contract.
The second basic area of damages are general damages, which are presumed to be a
result of the other party's actions, but are subjective both in nature and determination
of value of damages. These include pain and suffering, future problems and crippling
effect of an injury, loss of ability to perform various acts, shortening of life
span, mental anguish, loss of companionship, loss of reputation (in a libel suit,
for example), humiliation from scars, loss of anticipated business and other harm.
The third major form of damage is exemplary (or punitive) damages, which combines
punishment and the setting of public example. Exemplary damages may be awarded when
the defendant acted in a malicious, violent, oppressive, fraudulent, wanton or grossly
reckless way in causing the special and general damages to the plaintiff. On occasion
punitive damages can be greater than the actual damages, as, for example, in a sexual
harassment case or fraudulent schemes. Although often asked for, they are seldom
awarded. Nominal damages are those given when the actual harm is minor and an award
is warranted under the circumstances. The most famous case was when Winston Churchill
was awarded a shilling (about 25 cents) against author Louis Adamic, who had written
that the British Prime Minister had been drunk at a dinner at the White House. Liquidated
damages are those pre-set by the parties in a contract to be awarded in case one
party defaults as in breach of contract.
See also consequential damages exemplary damages general damages judgment liquidated
damages special damages
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