Author: Anika Helen - Paralegal
Edited By: Ryan Carson
In any kind of litigation, a person may be entitled to damages. When it comes to damages, it usually means monetary awards. When a person is injured or in a situation where they have been wronged in one way or another, they are entitled to different kinds of damages from the court. To simply put, damages are the amount of money that is claimed by a party or is ordered to be paid to a person, including a corporation, as compensation for loss or injuries.
The main types of damages that are available to litigants
General (Non-Pecuniary) Damages
This is for damages for non-monetary losses suffered by a plaintiff. While these damages are not capable of exact quantification (e.g. pain and suffering, disfigurement, mental distress, loss of enjoyment of life, and loss of amenities), a party is still required to provide the necessary evidence upon which the court can award these damages. These damages are for past, present and future losses. Courts look at evidence that prove that a person has lost the ability to do certain things as a result of their injury or suffering.
Pecuniary Damages
These damages are also called special damages. These kinds of damages can be quantifiable in monetary loss. Pecuniary damages can result to any plaintiff in addition to non-pecuniary damages. For example, loss of income, medical expenses, cost of repairs, etc., can be categorized as such. If a person was in an accident, and they lost a limb as a result, they would be entitled to non-pecuniary as well as pecuniary damages.
Nominal Damages
Token damages awarded by the court to redress a violation of a legal right that the law deems necessary to protect even in the absence of actual harm or proof of harm or loss. Nominal damages are usually very small in amounts. Not often legal fees are covered and awards for damages are not high either. So, why would someone still file for nominal damages? It is mostly because they are usually seeking a court’s acknowledgement that their rights have been violated. These situations are usually because the plaintiff just want to establish grounds to take further legal action or they simply want to have a legal record that they were mistreated or wronged.
Compensatory (or Actual) Damages
Damages for the actual loss sustained by the plaintiff that will effectively place the plaintiff in the position that it would have occupied had the wrong not occurred or had the contract been performed. They are intended to compensate the plaintiff of a lawsuit with enough money to cover the actual amount of the injury or loss. Actual damages are awarded to replace the exact amount of loss as a result of an incident. For example, medical bills, rehabilitation expenses, physical therapy, lost wages, medical treatments, property lost or repaired, nursing home care, etc. To be entitled to actual damages, a plaintiff must be able to prove that they have suffered such losses and the monetary amount of the loss. It is the most common type of damage in litigation.
Punitive (or Exemplary) Damages
Non-compensatory damages to punish a defendant for its shockingly harsh, vindictive, reprehensible, or malicious behaviour. It is usually awarded in addition to compensatory damages. It is awarded by a judge when it is proven that the defendant willingly and intentionally inflected injury or harm on the plaintiff. Many provinces have a limit to how much can be awarded as punitive damages as the calculation can be difficult to predict.
Aggravated Damages
Damages in recognition of and to compensate a plaintiff for, suffering intangible damages such as mental distress, pain, anguish, grief, anxiety, humiliation, indignation, outrage as a result of the defendant’s actions. The damage award is intended to compensate for the aggravation of the injury by the defendant’s misbehaviour. It is not usually awarded to the defendant to please the plaintiff, but more because to make sure that there is some sort of punishment given to the defendant because of their behaviour. There are two basic requirements of punitive damages: (i) the defendant’s conduct must be reprehensible; and (ii) punitive damages must be rationally required to punish the offending party and to meet the objectives of retribution, deterrence, and denunciation.
Liquidated Damages
These are the damages agreed upon by parties entering into a contract, to be paid by a party who breached the contract to a non-breaching party. These are available in cases where damages may be hard to foresee. It must be a fair estimate of what the damages might be if there is a breach. It can be used when it is hard to prove the actual harm or loss caused by a breach. The liquidated damages should amount to the actual damages that results due to a breach. Liquidated damages are most common in construction contracts and serve as a useful risk management mechanism.
In many cases, one or more type of damages may be awarded as a result of multiple different kinds of losses and injuries. Understanding what kind of loss you have suffered is an important step before you decide to take the route of litigation. Consulting an attorney or a paralegal is advised before filing a claim, to make sure that you get the most out of what you are entitled to as a result of your loss and suffering.
Disclaimer
The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.