Damages

Tort Damages Overview

General Where the defendant has committed a tort /civil wrong, the claimant/wronged party is entitled to monetary compensation so as to put him in the position in which he would have been, but for the wrong committed. … Read the rest

Tort Damages Issues II

General and Special Damages The general principle of damages is that the plaintiff should be put in the same position in so far as money can do so, in which he would have been, but for the wrong.… Read the rest

Tort Damages Issues I

Proving Loss A person who claims damages must prove the fact and amount of damages on the balance of probabilities. The nature of the damage will determine the degree of certainty and particularity with which it must be proved.… Read the rest

Tax Interest & Currency

Tax and Taxability At common law awards of damages were not reduced or adjusted on the basis of the taxation effect. The issue of taxation arises in relation to a loss for which damages are awarded, which would otherwise be subject to tax, but where the damages awarded are not themselves subject to tax.… Read the rest

Restitutionary Damages

Overview I Restitutionary damages seek to undo unjust enrichment. They seek to recoup benefits which have accrued to a wrongdoer, which exceeds the loss to the person who has been wronged. Compensation for breach of contract may comprise or include a restitutionary element.… Read the rest

Liquidated Damages

Overview The parties to a contract may pre-agree the level of damages or compensation, payable in the event of a breach. Pre-agreed damages are described as liquidated damages. It is a basic principle that pre-agreed liquidated damages must not amount to a penalty.… Read the rest

Contract Damages Principles

The Law Upholds Bargains An award of damages is the primary remedy for breach of contract. The basic principle of contract damages, is that a person who suffers loss by reason of a breach of contract, is entitled to compensation in money, in so far as money can do so, to place him in the same position and situation in which he would have been, if the contract had been performed and the breach had not occurred.… Read the rest

Contract Damages Mitigation

Overview of Mitigation A party must take reasonable steps to mitigate his loss arising from the other party’s wrong or breach of contract. He may not recover damages for a loss which he suffers, which he could have avoided by taking reasonable action.… Read the rest

Contract Damages Issues II

Damages not usually awarded for Mental Distress As a general principle, a person breaking a contract is not liable for the distress, frustration, anxiety, tension, displeasure or aggravation which the breach causes. However, damages for mental distress have been allowed in certain categories of case such as where leisure services are provided, as in the case of a package holiday.… Read the rest

Contract Damages Issue I

General The law on damages is almost entirely judge made. There is very little statutory law which is of relevance. Accordingly, the principles are found in various cases. The principles on which damages are assessed and awarded have evolved over time.… Read the rest