Special damages in legal claims refer to calculable financial losses caused by a defendant’s actions or breach of contract. Examples include medical expenses, lost income, and repair costs, requiring clear evidence to claim compensation.
By Brad Nakase, Attorney
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Damages granted in some legal cases might take the form of special damages. Of course, the particulars of the situation you’re dealing with will dictate what they mean.
This article explains what special damages are and how to determine if you are eligible to receive them in the event of a civil case victory.
The primary goal of most civil cases is to recover financial losses. The plaintiff seeks monetary compensation for economic losses incurred as a result of the defendant’s wrongdoing, and in some cases, non-monetary damages as well.
If a plaintiff is successful in a civil lawsuit, they may be able to collect special damages. Nevertheless, the definition of the legal word might vary across several branches of the law. For example, there is a distinction between the special damages awarded in a personal injury claim and the special damages awarded in a contract dispute.
When it comes to claims for personal injury, the phrase “special damages” refers to damages that have expenses that may be directly calculated. For instance, special damages might cover:
As an alternative to or in addition to general damages, personal injury claims might seek special damages.
Special damages are simple to quantify since the plaintiff can show their real monetary loss with invoices and receipts, whereas general losses are more difficult to measure. Things like mental anguish and physical agony are examples of general damages, and they are notoriously difficult to quantify.
There is a whole different interpretation of “special damages” in the context of contract law. Special damages, sometimes called consequential damages, are atypical financial losses that arise from a violation of contract.
In order to recover genuine, exceptional losses, the plaintiff may have to prove that the defendant was aware of the unique circumstances surrounding the case.
Let’s imagine, for instance, that a plaintiff entered into a contract with a defendant in order to purchase a component from them. Also, let’s pretend the plaintiff informed the defendant that the part was necessary to manufacture a product for a customer’s wedding on a particular day. In the event that the component was late and the plaintiff was unable to deliver the item in time for the wedding, the plaintiff would be unable to profit from the sale.
If the contract demanded prompt shipping, the plaintiff might sue for lost profits due to the item’s delayed shipment. So long as the defendant knew that timely delivery was important, the defendant is accountable for extra damages, such as the lost profit.
Special damages can also take the form of lost time, reputational harm, or lost operational income due to a violation of contract.
Whether a plaintiff is pursuing a claim based on a contract or a tort, the ability to demonstrate financial harm is crucial.
The plaintiff must prove that the losses were reasonably predictable, calculable, and caused by the breach in order to get special damages in a breach of contract action, for instance. The plaintiff in a tort action, on the other hand, can get special damages if they can show that the defendant’s carelessness or malfeasance caused them actual financial harm.
Sufficient proof of unique damages in tort and contract claims might occasionally be difficult to produce. To prove to the court that the defendant should pay for these kinds of damages, plaintiffs may have to bring in experts, provide paperwork, and submit other proof.
The issue of “what are special damages?” is just the beginning; a skilled attorney can assist plaintiffs in navigating the legal system. Any plaintiff seeking monetary compensation for these kinds of losses should see an attorney for assistance in gathering the evidence required to prove their case.
Choose a lawyer with a track record of success in cases like yours. When you need counsel for a breach of contract lawsuit, for instance, you should hire a contract lawyer; when you need assistance with a personal injury claim, you should hire a tort lawyer.
In the event that the defendant admits fault, your lawyer may be able to assist you in negotiating a settlement outside of court that compensates you for particular damages. Or, with the help of your attorney, you may prove your case to the court’s satisfaction, including the amount of special damages, and get the money you need.
In the context of contract law and personal injury law, special damages have different meanings. In the context of personal injury law, “special damages” refer to monetary losses that are calculable. Costs associated with medical care, lost pay, and property damage are just a few examples. In contrast to special damages, general damages—which encompass compensation for things like pain and suffering—are far more difficult to assess.
The case of Gloria Estefan, a famous singer who suffered serious injuries after a vehicle struck her tour bus, is an excellent example of special damages. After breaking her back, she had to relearn how to walk and was unable to tour for a year. After suing for reimbursement of costs and lost income, Estefan and her husband received a total of $9 million in damages.
If you can show that the defendant’s carelessness or malicious actions directly resulted in your financial harm, you may be able to claim special damages in your personal injury case. In circumstances involving a breach of contract, it is possible to seek special damages if you can prove that the defendant had a reasonable expectation that certain losses would arise as a result of the breach.
You can seek many types of damages in a case. When claiming damages for an injury, real monetary losses are considered special damages. If you’re successful in your injury claim, the court may also award you general damages. These are the kinds of damages that aren’t directly related to your financial losses and are thus difficult to quantify. In addition, the court may award punitive penalties in an effort to discourage the offender from engaging in similar conduct in the future.
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