Special damages
Special damages compensate the plaintiff for quantifiable monetary losses suffered by the plaintiff.[6] For example, extraordinary expenses, repair or replacement of damaged property, lost profits (both historical and future), loss of irreplaceable items, additional household expenses, etc.[7] They are seen in both personal and business actions.
Special damages may include direct losses (such as amounts the plaintiff had to spend to try to mitigate&action=edit&redlink=1 "Mitigate (law) (not yet drafted)") damages)[8] and consequential or economic losses resulting from lost profits in a business.
Tort damages are generally awarded to place the plaintiff in the position he would have been in had the damage not occurred.[9] Damages for breach of contract are generally awarded to place the plaintiff in the position he would have been in had the contract not been breached. This can often result in a different measure of damages. In cases where it is possible to frame a claim both contractually and non-contractually, it is necessary to be aware of what gives the best result.
If the transaction was a “good deal,” the contract usually provides a better outcome for the plaintiff.
For example, Neal agrees to sell Mary a vintage Rolex for £100. In reality, the watch is fake and only worth £50. If it had been a genuine vintage Rolex, it would have been worth £500. Neal has breached the contract and could be sued. In the contract, Mary is entitled to one item worth £500, but she only has one item worth £50. The compensation for damages is 450 pounds. Furthermore, Neal induced Mary to enter into the contract by a false statement (a tort). If Mary sues in tort, she is entitled to damages that put her in the same financial position she would be in had the misrepresentation not occurred. It is clear that she would not have signed the contract knowing that the watch was counterfeit, and she is entitled to her £100 back. Therefore, her damages are £100. (No However, I would have to return the watch, otherwise the damage would be £50.)
If the transaction was a “bad deal,” tort offers a better outcome for the plaintiff. If in the example above Mary had overpaid, paying £750 for the watch, her contractual damages would still be £450 (giving her the item she contracted to buy), however, in non-contractual damages it is £700. This is because non-contractual damages put you in the position you would have been in had the damage not occurred, and are calculated as the return of your money (£750) minus the value of what you actually got (£50).
Special damages are sometimes divided into incidental damages and indirect damages.
Incidental losses include the costs necessary to remedy problems and make things right. The most important element is probably the restoration of property damage. For example, a factory burned down due to the negligence of a contractor. The plaintiff would be entitled to the direct costs necessary to rebuild the factory and replace the damaged machinery.
The plaintiff may also be entitled to any consequential losses. These may include the loss of profits that the plaintiff could have earned during the period in which the factory was closed and rebuilt.
In the event of a breach of contract by the defendant, a court will typically award the sum that would restore the injured party to the financial position it expected from the performance of the promise or promises (known as an "expectation measure of damages") or a "benefit of bargain" measure. This standard, however, has come under increasing scrutiny by Australian courts and commentators. legal.[10][11][12] A judge arrives at the compensatory number considering both the type of contract and the loss suffered.[13].
Where it is not possible or desirable to award the victim in this way, a court may award monetary compensation intended to restore the injured party to the economic position it occupied at the time the contract was entered into (known as a "dependency measure&action=edit&redlink=1 "Dependency compensation (right) (not yet drafted)"))[14][15] or intended to prevent the defaulting party from being unjustly enriched ("restitution") (see below).
The parties can contract a liquidated damages clause that will be paid in the event of a breach of contract by one of the parties. Under common law, a liquidated damages clause will not apply if the purpose of the term is solely to punish a breach (in this case called criminal damages).[16] The clause will be enforceable if it represents a genuine attempt to quantify a loss in advance and is a good faith estimate of the economic loss. Courts have ruled as excessive and invalid damages that the parties contracted as liquidated, but which the court nevertheless found to be criminal. To determine whether a clause is a damages clause or a penalty clause, it is necessary to consider.
Damages in tort are generally awarded to place the plaintiff in the position he or she would have been in had the damage not occurred. Damages in matters of extracontractual liability are quantified in two sections: general damages and special damages.
In personal injury claims, damages are quantified based on the severity of the injuries suffered (for more details, see the section on general damages). In non-personal injury claims, for example a professional negligence claim against solicitors, the measure of damages will be assessed by the loss suffered by the client due to the solicitor's negligent act or omission which gave rise to the loss. The loss must be reasonably foreseeable and not too remote.") Financial losses are usually simple to quantify, but in complex cases involving the loss of pension rights and projections of future losses, the attorney conducting the case often retains an actuarial or accounting expert to help quantify the loss.
General damage
"General damages" is monetary compensation for the non-monetary aspects of the specific harm suffered. These damages are sometimes called "pain, suffering, and loss of amenity." Examples include physical or emotional pain and suffering, loss of companionship, loss of consortium), disfigurement, loss of reputation, loss or impairment of mental or physical capacity, hedonic harm or loss of enjoyment of life, etc.[19] This is not easily quantifiable, and depends on the individual circumstances of the claimant. In the United Kingdom, judges rely on compensation awarded in previous similar cases.
General damages are generally awarded only in lawsuits brought by individuals, when they have suffered personal injury. Examples of this would be personal injuries (following the tort of the defendant's negligence), or the tort of defamation.