actual damages


Also found in: Dictionary, Thesaurus, Wikipedia.

Actual Damages

In a lawsuit, the damages the judge or jury orders one party to pay the other to compensate for real losses the second party suffered resulting from the action or negligence of the first party. For example, if Joe sues Bob because Bob caused $5,000 in damage to Joe's property, the actual damages the jury awards will equal $5,000. Actual damages differ from both nominal damages and punitive damages.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

actual damages

Losses or injuries for which the law allows compensation as a means of reimbursement;used also to refer to the money awarded by a court as that compensation.Contrast with nominal damages,which would award $1,but recognize that the plaintiff's rights have been violated even though no economic, physical, or emotional harm occurred. Contrast also with punitive damages,which are not intended to compensate the victim but to punish the aggressor.

Actual damages may be

• Direct damages—those that flow directly and naturally from the wrong

• Consequential damages—those that flow from some consequence of the wrong

Example: Able agrees to purchase Baker's house. As a result of that contract, Baker agrees to buy a new condo under construction and pays a nonrefundable $5,000 reservation fee. Able then defaults and refuses to purchase Baker's house, even though Able has no justifiable reason for doing so. Two weeks later the stock market crashes, and Baker counts himself lucky when he is able to sell his house for $40,000 less than the original contract price. But, Baker is now unable to purchase the condo and loses his $5,000. Under the right circumstances, Able could be liable to Baker for actual damages consisting of the $40,000 difference in the two sale prices (direct damages) and for the loss of the $5,000 earnest money (consequential damages—more indirect and less predictable) and for punitive damages.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
Mentioned in ?
References in periodicals archive ?
As to the Truth In Lending Act violation, the magistrate judge found that plaintiff had properly alleged actual damages in the amounts of $5,680, which represents what he paid for a warranty he was promised but did not receive, and $3,651, from the processing fee increase, for a total of $9,331.1.
To state a claim for money damages under FDUTPA, a plaintiff must establish that 1) he or she was subjected to a deceptive act or unfair practice; 2) there was causation between such act or practice and the plaintiff's damages; and 3) the plaintiff suffered "actual damages." (6) In consumer cases, courts have historically measured "actual damages" (undefined by the statute) by the difference in the market value between the product or service that a consumer received and the product or service that he or she should have received, although a full purchase price would be appropriate when the product or service has become valueless.
Third, the court added, even if the insured cannot establish a present contractual right to policy benefits, the insured can recover benefits as actual damages under the Insurance Code if the insurer's statutory violation caused the insured to lose that contractual right.
Section 4, as amended by the committee, provides that a business which violates the provisions of this bill would be liable to the aggrieved consumer for a civil penalty of not less than $100 if the consumer was not injured by such a violation and for a civil penalty and actual damages if he was injured by such a violation.
The court's ruling is incompatible with previous decisions in which it restricted the General Assembly's power to limit damages for "physical injuries to property," in other words, for compensation for actual damages to property.
During the regular legislative session, the Senate approved a bill that would have allowed homeowners to recover up to twice the cost of actual damages. At a hearing Tuesday on the TWIA measure, state Sen.
In addition to actual damages, fines and punitive damages could double the $41 billion bill, lawyers have said.
because the issue of defining actual damages was not properly before the
Under the Copyright Act, an infringer is liable for either statutory damages or the copyright owner's actual damages plus the infringer's profits.
likely to be grossly excessive when compared with actual damages in
In dismissing the majority of the claims, the court allowed a limited number of negligence-based claims to move forward, provided that plaintiffs could demonstrate actual damages.
The settlement is almost two-thirds less than the USD4.6bn demanded in actual damages by lawyers of Huntsman Corp.