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For example, compensatory damages may be awarded as the result of a negligence claim under tort law. Expectation damages are used in contract law to put an injured party in the position it would have occupied but for the breach. [7] Compensatory damages can be classified as special damages and general damages. [8]
The Fair Debt Collection Practices Act would charge up to $1,000 for every violation of its provision, which is an example of statutory damages. Treble damages is a type of statutory damages in which the amount of compensatory damages awarded to a plaintiff can be tripled given the warranty of a statute. [8]
The type of claim giving rise to the damages, such as whether it is a breach of contract action or tort claim, can affect the rules or calculations associated with a given type of damages. [3] For example, consequential damages are a potential type of expectation damages that arise in contract law.
Incidental damages are the expenses reasonably incurred by a non-breaching party in order to avoid further consequential or direct damages that result from the breach of contract. For example, following the breach of a contract for employment, incidental damages could include the cost incurred by the former employee to find another job. [6]
Damages for breach of contract is a common law remedy, available as of right. [1] It is designed to compensate the victim for their actual loss as a result of the wrongdoer’s breach rather than to punish the wrongdoer. If no loss has been occasioned by the plaintiff, only nominal damages will be awarded.
Thus, expectation damages were established under one of the guiding common law principles in awarding damages restitutio in integrum (restoration to original condition). [4] After this case expectation damages as a form of compensatory damages became the norm in apportioning damages in breach of contract cases. [7] [8]
Examples of statutory authorisation of punitive damages (the third Rookes category) include section 34 of the Crime and Courts Act 2013, which allows claimants to seek, and courts to grant, exemplary damages against news media publishers when they show a "a deliberate or reckless disregard of an outrageous nature for the claimant's rights". [13]
Specifically, it measures the value of something before and after the causative act or omission creating the lost value in order to calculate compensatory damages. [ 1 ] In legal damages theories, diminution in value is often calculated for compensatory special damages when a loss is monetarily quantifiable, and for restitution or disgorgement ...