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Money a jury gives to a party in a lawsuit to compensate for some injury. Damages may be divided into actual damages, which compensate for a real loss (such as the cost of repairing a car), and punitive damages, which penalize the other party. For example, a jury may require a defendant to pay $30,000 in actual damages to pay for the plaintiff's medical bills, and a further $100,000 to show how displeased the jury is with the defendant's actions.


money awarded by a court to a plaintiff who has suffered loss at the hands of the defendant as a result of breach of CONTRACT or a TORT committed by the defendant.


Compensation for an injury for which the law provides a remedy. Following are highlights of some of the law of damages as it relates to real property:

• The measure of damages to property is the difference in the value of the thing before the injury and after the injury. The cost to make repairs is usually not a valid measure of damages.

• Parties may not contractually agree to a penalty for default, such as late completion of a construction project. Penalties are illegal. Parties may, however, agree that the damages for default will be difficult to measure exactly, so they will agree to liquidated damages in a certain agreed-upon amount. This is the reasoning behind contracts that allow retention of the earnest money if the buyer defaults.

• In breach of contract cases, injured parties are required to take such actions as are reasonable to minimize their damages and will be denied any damages at all if they do not take such mitigation steps. If a tenant breaches a lease, the landlord must try to release the premises to another, and the value of any damages will be diminished by the value of the new lease.

• Consequential damages, which are damages not as a direct result of the wrong, but flowing from some of the consequences of the wrong, are recoverable only if the wrongdoer had some reason to know of the consequences. A person who allows something unsafe to remain on the premises (such as a wet floor) may be responsible for the injury to a guest who slips and falls. However, the person may not be liable for the consequential damages when the guest becomes addicted to pain medication.

• Punitive damages are intended to punish the wrongdoer and deter future similar conduct. Because of the preponderance of multimillion-dollar punitive damage jury verdicts in recent years, the United States Supreme Court has recently held that excessive punitive damages are a violation of the “cruel and unusual punishment” clause of the Constitution, and so may be reviewed in the federal court system and set aside even though the original lawsuit was brought in a state court system.

• Treble damages are allowed under many federal statutes rather than allowing the jury to calculate punitive damages.

• Damages received for personal bodily injury are not income and not taxable; other types of damages may be taxable depending on what they represent.

• Damages are recoverable for emotional distress. The addition of a claim for emotional dis- tress is often enough to trigger an insurance company defense of a lawsuit. Although there may not be insurance coverage for an award, it will pay for the lawyers.

References in periodicals archive ?
Combined data from the Ministry of Civil Affairs (MCA) indicate that 26 people were killed, 100,000 homes were damaged or destroyed, and total economic damages reached CNY1.
An important distinction is that the set-off is only applied to economic damages.
For some time now, Nancy Fannon has been an authoritative thought leader in the area of economic damages and lost profits.
Suit seeks $43,187 in economic damages, $50,000 in noneconomic damages.
Caps noneconomic damages at $500,000 through 2011; establishes a 30% at-fault requirement for joint and several liability for economic damages.
Suit seeks $23,621 in economic damages, $150,000 in non-economic damages.
Generally, defendants will be liable only for economic damages attributable to their fault.
9 million of the total since it was found 97 percent responsible for economic damages such as medical bills, and 25 percent responsible for noneconomic damages like pain and suffering.
An Illinois appellate court ruled a client could recover purely economic damages in a negligence case against an accounting firm without bringing a breach of contract action against it.
Suit seeks $500,000 in economic damages, $500,000 in non-economic damages.
The legislation would not make any changes affecting the full payment of economic damages to injured plaintiffs, such as hospital bills, lost wages and future health care needs.
The limit does not apply to economic damages such as lost wages and medical expenses.

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