Compensatory Damages

Compensatory Damages in the United States

Compensation seeks to remedy not merely the injured economic value but also the pain and suffering to the defendant. The former is known as pecuniary losses (Vermögenscschäden) and the latter as non-material damages (Immaterieller Einbussen)

See: Northwestem Nat. Cas. Co. v. McNulty, C.A.Fla., 307 F.2d 432, 434.

Compensatory Damage (in opposition to punitive damages)

Compensatory damages are intended to remedy the actual damages caused by the party against whom they awarded. Thus compensatory damages are an award of money intended to be exactly equal to the injury of the victim and nothing more. Yet they may include the abstract compensation for pain and suffering. Nevertheless compensatory damages do not include punitive damages.

Compensatory Damages in Contracts

Note: For more information on Nominal Damages, click here. See Consequential Damages here and contractual remedies here.

Money paid to compensate the non-breaching party for the loss suffered as a result of the breach.

One party has the right to damages (money paid by one party to another to discharge a liability) when the other party has breached the contract unless, of course, the contract itself or other circumstances suspend or discharge that right. Compensatory damages is the general category of damages awarded to make the non-breaching party whole. (1)

Incidental Damages

Money paid to the non-breaching party in an attempt to avoid further loss on account of the breach.

A party “can claim that, too, as incidental damages which include additional costs incurred by the non-breaching party after the breach in a reasonable attempt to avoid further loss, even if the attempt is unsuccessful.” (2)

Resources

Notes

  1. “Business and the Legal Environment”, by Don Mayer, Daniel M. Warner and George J. Siedel.
  2. Id.

See Also

Compensatory Damages (Causes of Action)

This section introduces, discusses and describes the basics of compensatory damages. Then, cross references and a brief overview about Causes of Action is provided. Finally, the subject of Agency Relationships in relation with compensatory damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.

Compensatory Damages (Damages)

This section introduces, discusses and describes the basics of compensatory damages. Then, cross references and a brief overview about Damages is provided. Finally, the subject of Remedies in relation with compensatory damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.

Compensatory Damages (Remedies)

This section introduces, discusses and describes the basics of compensatory damages. Then, cross references and a brief overview about Remedies is provided. Finally, the subject of Agency Relationships in relation with compensatory damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.

Compensatory Damages (Remedies)

This section introduces, discusses and describes the basics of compensatory damages. Then, cross references and a brief overview about Remedies is provided. Finally, the subject of Franchises in relation with compensatory damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.

Compensatory Damages (Remedies)

This section introduces, discusses and describes the basics of compensatory damages. Then, cross references and a brief overview about Remedies is provided. Finally, the subject of Distributorships in relation with compensatory damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.

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