In law, damages refers to the money paid or awarded to a claimant (England), pursuer (Scotland) or plaintiff (US) following a successful claim in a civil action. Law is a system of rules enforced through a set of Institutions used as an instrument to underpin civil obedience politics economics and society A plaintiff ( Π in Legal shorthand) also known as a claimant or complainant, is the party who initiates a Lawsuit A pursuer in Scotland is the party who initiates a Lawsuit before a Court of Scotland. A plaintiff ( Π in Legal shorthand) also known as a claimant or complainant, is the party who initiates a Lawsuit In law a lawsuit is a civil action brought before a Court in which the party commencing the action the Plaintiff, seeks a legal or equitable remedy

Compensatory damages

Compensatory damages are paid to compensate the claimant for loss, injury, or harm suffered by (see requirement of causation) another's breach of duty. This article refers to the legal tests of remoteness causation and foreseeability in the Tort of negligence

Quantum/measure of damages - breach of duty - contract

On a breach of contract by a defendant, a court generally awards the sum which would restore the injured party to the economic position that he or she expected from performance of the promise or promises (known as an "expectation measure" or "benefit-of-the-bargain" measure of damages).

When it is either not possible or desirable to award damages measured in that way, a court may award money damages designed to restore the injured party to the economic position that he or she had occupied at the time the contract was entered (known as the "reliance measure"), or designed to prevent the breaching party from being unjustly enriched ("restitution") (see below). Reliance damages is the measure of compensation given to a person who suffered an economic harm for acting in reliance on a party who failed to fulfill their obligation

Parties may contract to liquidated damages to be paid upon a breach of the contract by one of the parties. Liquidated damages (also referred to as liquidated and ascertained damages are damages whose amount the parties designate during the formation of a contract for the injured Under the common law, a liquidated damages clause will not be enforced if the purpose of the term is solely to punish a breach (in this case it is termed penal damages). Penal damages are best seen as quantitatively excessive Liquidated damages and are invalid under the Common law. The clause will be enforceable if it involves a genuine attempt to quantify a loss in advance and is a good faith estimate of economic loss. Courts have ruled as excessive and invalidated damages which the parties contracted as liquidated, but which the court nonetheless found to be penal.

Quantum/measure of damages — Breach of duty — tort

Damages in tort are generally awarded to place the claimant in the position he/she would have been had the tort not taken place. In Tort, there can be no Liability in Negligence unless the Claimant establishes both that he or she was owed a duty of care by the defendant Damages in tort are quantified under two headings: general damages and special damages. Tort law is the name given to a body of law that creates and provides remedies for civil wrongs that do not arise out of Contractual duties

General damages compensates the claimant for the non-monetary aspects of the specific harm suffered. This is usually termed 'pain, suffering and loss of amenity'. Examples of this 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, loss of enjoyment of life, etc. Loss of consortium is a term used in the Law of Torts that refers to the deprivation of the benefits of a Family relationship due to injuries caused by This is not easily quantifiable, and depends on the individual circumstances of the claimant. Judges in the UK base the award on damages awarded in similar previous cases. For example, an accident in which the claimant has suffered the loss of both legs and for which the defendant was legally responsible, will typically attract general damages (at 2006) in the region of £125,000–145,000. A list of these are contained in a reference book known as 'Kemp & Kemp'. [1]

General damages are generally awarded only in claims brought by individuals, when they have suffered personal harm. Examples would be personal injury (following the tort of negligence by the defendant), or in the tort of defamation.

Special damages compensate the claimant for the quantifiable monetary losses suffered by the plaintiff. For example, extra costs, repair or replacement of damaged property, lost earnings (both historically and in the future), loss of irreplaceable items, and additional domestic costs etc. They are seen in both personal and commercial actions.

Special damages can include direct losses (such as amounts the claimant had to spend to try to mitigate problems) and consequential or economic losses resulting from lost profits in a business.

Damages in tort are awarded generally to place the claimant in the position in which he would have been had the tort not taken place. Damages for breach of contract are generally awarded to place the claimant in the position in which he would have been 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 in either contract or tort, it is necessary to be aware of what gives the best outcome.

If the transaction was a ‘good bargain’ contract generally gives a better result for the claimant.

As an example, Fred sells Bob a watch for £100. Fred tells Bob it is an antique Rolex. In fact it is a fake one and worth £50. If it had been a genuine antique Rolex, it would be worth £500. Fred is in breach of contract and could be sued. In contract, Bob is entitled to an item worth £500, but he has only one worth £50. His damages are £450. Fred also induced Bob to enter into the contract through a misrepresentation (a tort). If Bob sues in tort, he is entitled to damages that put himself back to the same financial position place he would have been in had the misrepresentation not been made. He would clearly not have entered into the contract knowing the watch was fake, and is entitled to his £100 back. Thus his damages in tort are £100.

If the transaction were a ‘bad bargain’, tort gives a better result for the claimant. If in the above example Bob had overpaid, paying £750 for the watch, his damages in contract would still be £450 (giving him the item he contracted to buy), however in tort damages are £700. This is because damages in tort put him in the position he would have been in had the tort not taken place, and are calculated as his money back (£750) less the value of what he actually got (£50).

Various matters

Direct losses and consequential losses

Special damages are sometimes divided into direct losses, and consequential or economic losses.

Direct losses include the costs needed to remedy problems and put things right. The largest element is likely to be the reinstatement of property damage. Take for example a factory which was burnt down by the negligence of a contractor. The claimant would be entitled to the direct costs required to rebuild the factory and replace the damaged machinery.

The claimant may also be entitled to any consequential losses. These are the lost profits that the claimant could have been expected to make in the period whilst the factory was closed and rebuilt.

Foreseeability and remoteness

Damages are likely to be limited to those reasonably foreseeable by the defendant. If a defendant could not reasonably have foreseen that someone might be hurt by his or her actions, then there may be no liability. This is known as remoteness.

This rule does not usually apply to intentional torts (e. g. deceit), and also has stunted applicability to the quantum in negligence where the maxim Intended consequences are never too remote applies — 'never' is inaccurate here but resorts to unforeseeable direct and natural consequences of an act. Deception (also called beguilement or subterfuge) is the act of convincing another to believe Information that is not true or not the whole truth as in

Quantifying losses in practice — expert evidence

It may be useful for the lawyers for the plaintiff and/or the defendant to employ forensic accountants or forensic economists to give evidence on the value of the loss. Forensic accounting is the specialty practice area of Accountancy that describes engagements that result from actual or anticipated disputes or Litigation. Forensic economics is the scientific discipline that applies economic theories and methods to the issue of pecuniary Damages as specified by Case law and In this case, they may be called upon to give opinion evidence as an expert witness. An expert witness is a Witness, who by virtue of Education, Training, Skill, or Experience, is believed to have Knowledge

Statutory damages

Statutory damages are laid down in law. Statutory damages are pre-established Damages for cases where calculating a correct sum is deemed difficult Mere violation of the law can entitle the victim to a statutory award.

For example, the possible remedies for misrepresentation in the United Kingdom are codified in the Misrepresentations Act. Misrepresentation is a Contract law concept It means a false statement of fact made by one party to another party which has the effect of inducing that party into the contract

Nominal damages

On the other hand, nominal damages are very small damages awarded to show that the loss or harm suffered was technical rather than actual. Perhaps the most famous nominal damages award in modern times has been the $1 verdict against the National Football League (NFL) in the 1986 antitrust suit prosecuted by the United States Football League. The National Football League ( NFL) is the largest professional American football league. For the proposed "New USFL" see United States Football League (2010. Although the verdict was automatically trebled pursuant to antitrust law in the United States, the resulting $3 judgment was regarded as a victory for the NFL. Treble damages, in Law, is a term that indicates that a Statute permits a Court to triple the amount of the actual/compensatory Damages to be United States antitrust law is the body of Laws that prohibits anti-competitive behavior (monopoly and Unfair business practices. Historically, one of the best known nominal damage awards was the farthing that the jury awarded to James Whistler in his libel suit against John Ruskin. A jury a sworn body of persons convened to render a rational, impartial Verdict (a finding of fact on a question officially submitted to them James Whistler may refer to James Abbott McNeill Whistler, 19th-century American-born British-based painter known for the painting colloquially known as John Ruskin (8 February 1819 &ndash 20 January 1900 is best known for his work as an Art critic, sage writer, and Social critic, but is remembered In the English jurisdiction, nominal damages are generally fixed at £2.

Many times a party that has been wronged but is not able to prove significant damages will sue for nominal damages. This is particularly common in cases involving alleged violations of constitutional rights, such as freedom of speech.

Punitive damages (non-compensatory)

Main article: Punitive damages

Generally, punitive damages, which are also termed exemplary damages in the United Kingdom, are not awarded in order to compensate the plaintiff, but in order to reform or deter the defendant and similar persons from pursuing a course of action such as that which damaged the plaintiff. Punitive damages (termed exemplary damages in the United Kingdom) are Damages not awarded in order to compensate the Plaintiff, but in order The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Punitive damages are awarded only in special cases where conduct was egregiously invidious and are over and above the amount of compensatory damages. Great judicial restraint is expected to be exercised in their application. In the United States punitive damages awards are subject to the limitations imposed by the due process of law clauses of the Fifth and Fourteenth Amendments to the United States Constitution. The United States of America —commonly referred to as the Due process (more fully due process of law) is the principle that a person has a right to receive notice and be heard in an orderly proceeding in order to protect his or her The Fifth Amendment ( Amendment V) of the United States Constitution, which is part of the Bill of Rights, is related to legal procedure The Fourteenth Amendment ( Amendment XIV) to the United States Constitution is one of the post- Civil War Reconstruction Amendments, first The Constitution of the United States of America is the supreme Law of the United States.

In England and Wales, exemplary damages are limited to the circumstances set out by Lord Patrick Devlin in the leading case of Rookes v. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland Patrick Arthur Devlin Baron Devlin PC ( 25 November 1905 - 9 August 1992) was a British Lawyer, Judge Barnard. They are:

1. Oppressive, arbitrary or unconstitutional actions by the servants of government.
2. Where the defendant's conduct was 'calculated' to make a profit for himself.
3. Where a statute expressly authorises the same.

Rookes v Barnard has been much criticised and has not been followed in Canada or Australia or by the Privy Council. Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page For a topic outline on this subject see List of basic Australia topics. A privy council is a body that advises the Head of state of a nation on how to exercise their executive authority, typically but not always in the context of a

Restitutionary or disgorgement damages

In certain areas of the law another head of damages has long been available, whereby the defendant is made to give up the profits made through the civil wrong in restitution. The law of restitution is the law of gains-based recovery It is to be contrasted with the law of compensation, which is the law of loss-based recovery The plaintiff thereby gains damages which are not measured by reference to any loss sustained. In some areas of the law this heading of damages is uncontroversial; most particularly intellectual property rights and breach of fiduciary relationship. Intellectual property ( IP) is a legal field that refers to creations of the mind such as musical literary and artistic works inventions and symbols names

In England and Wales the House of Lords case of Attorney-General v. The House of Lords is the second house of the Parliament of the United Kingdom and is also commonly referred to as "the Lords" Blake opened up the possibility of restitutionary damages for breach of contract. In this case the profits made by a defecting spy, George Blake, for the publication of his book, were awarded to the British Government for breach of contract. George Blake (born George Behar, November 11, 1922) is a former British spy known for having been a Double agent in The case has been followed in English courts, but the situations in which restitutionary damages will be available remain unclear.

The basis for restitutionary damages is much debated, but is usually seen as based on denying a wrongdoer any profit from his wrongdoing. The really difficult question, and one which is currently unanswered, relates to what wrongs should allow this remedy.

Legal costs

In addition to damages, the successful party is entitled to be awarded his reasonable legal costs that he spent during the case. This is the rule in most countries other than the United States. In the United States, a party generally is not entitled to its attorneys' fees or for hardships undergone during trial. Attorney fees (note that the use of the word 'attorney' connotes lawyers broadly solicitors and barristers are the costs of legal representation that an attorney's client or a party See American rule. In the field of Law and economics, the American Rule is a rule regarding assessment of Attorneys' fees arising out of Litigation.

History

Among the Saxons, a price called Weregeld was paid for homicide by the killer, in part to the family of the victim, in part to the local king. For their language see Anglo-Saxon language. Anglo-Saxon is the term usually used to describe the invading Tribes in the south Weregeld (alternative spellings wergild, wergeld, weregeld, etc List of countries by homicide rate Homicide ( Latin homicidium, homo human being + caedere to cut kill refers to the act of killing another

See also

• Bad faith
• Measure of Damages (under English law)
• Non-economic damages caps
• Restorative Justice
• Subrogation

External links

• Worldlii links to resources on the subject of damages