actual damages (2024)

Intort law, actual damages, also known as compensatory damages, are damages awarded by a court equivalent to the loss a party suffered. If a party’s right was technically violated but they suffered no harm or losses, a court may instead grant nominal damages.

TheSupreme Courtheld inBirdsall v. Coolidge, 93 U.S. 64 (1876)that the phrases "compensatory damages" and "actual damages" are identical.

The amount awarded is based on the proven harm, loss, or injury suffered by theplaintiff. This award does not includepunitive damages, which may be awarded when the defendant's actions are especiallyrecklessor malicious. Receiving actual damages does not prevent a party from also receiving punitive damages.

When calculating actual damages, courts will often look at the fair market value of destroyed/damaged property, lost wages/income, and necessarily incurred expenses. Courts may also include damages foremotional distress; however, due to the difficulty of placing an economic value on these intangible factors, the application is inconsistent.

[Last updated in June of 2022 by the Wex Definitions Team]

actual damages (2024)

FAQs

What are considered actual damages? ›

In tort law, actual damages, also known as compensatory damages, are damages awarded by a court equivalent to the loss a party suffered. If a party's right was technically violated but they suffered no harm or losses, a court may instead grant nominal damages.

How do you prove actual damages? ›

Proving damages

Proving compensatory damages typically requires presenting documentation such as receipts, testimony from the plaintiff or other witnesses about the impact of the tort on the plaintiff's life, and, in some cases, expert testimony.

What is actual amount of damages? ›

Actual damages are intended to provide the monetary amount necessary to replace what was lost and nothing more. Usually, compensatory damages are awarded in civil court cases in order to compensate for damages, injury, or another incurred loss.

What is actual damages v special damages? ›

In tort law, special damages are damages like car dents or medical expenses that can actually be ascertained, and they are contrasted with general damages, which refer to damages for things like intentional infliction of emotional distress which do not have a set monetary cost.

What is the basis for actual damages? ›

Actual damages are "compensation for an injury that will put the injured party in the position where it was before the injury. They pertain to such injuries or losses that are actually sustained and susceptible of measurement."62 Actual damages constitute compensation for sustained pecuniary loss.

What is the most money awarded in a lawsuit? ›

Here are the Largest Personal Injury Awards & Settlements in US History
  1. $206 Billion Dollars for The Tobacco Master Settlement Agreement. ...
  2. $150 Billion For The Family of Robert Middleton. ...
  3. $20 Billion for the BP Oil Spill. ...
  4. $4.9 Billion For The Anderson Family From General Motors.
Jun 3, 2024

What damages Cannot be measured? ›

Non-Monetary Damages are damages that cannot be measured by money. Non-monetary damages cover harms such as, physical and mental pain and suffering, loss of the enjoyment of life, and loss of consortium resulting from an injury.

Do actual damages include emotional distress? ›

Emotional distress is recognized as a compensable damage in a California personal injury case. If a victim can prove that he or she suffered emotional distress as an outcome of the accused party's negligence, he or she can recover compensation.

How does a court determine the amount of damages to be awarded? ›

General Damages

Instead, this amount is based on a variety of factors, including the nature and severity of the injury, the amount of pain you experience, length of recovery, and the disruption of your life. Most of these are fairly subjective, which can make it difficult to arrive at a number.

How to calculate damages in a lawsuit? ›

There's no set formula to calculate damages. However, a general rule to discern the amount awarded is to combine your expenses and determine a value for your pain and suffering. A personal injury lawyer can help you determine the amount in both general and special damages that you deserve.

What is the formula for personal injury settlements? ›

The Damages Formula

The adjuster will multiply the medical special damages number by one and a half to three times if the injury is minor and up to five or more times if the injury is especially deliberating and long-term. After this number is calculated, any income lost as a result of the injury will be added.

How to calculate damages for personal injury? ›

The amount of compensation in a personal injury claim is determined by considering several factors including the severity of the injury, the impact on your life and work, medical expenses incurred, future care needs, and loss of earnings.

What is the purpose of actual damages? ›

Also known as actual damages. The amount of money awarded to a party in a civil action to compensate for an injury or loss caused by another party's unlawful conduct. The purpose of compensatory damages is to make the claimant "whole," not to punish the wrongdoer.

How to calculate compensatory damages for emotional distress? ›

Once you have calculated the sum of your economic damages, your lawyer will multiply it by a number between 1.5 and 5 to get an estimated amount of your deserved non-economic damages. In general, the more severe your injury is, the higher your multiplier will be.

What is without proof of special damage? ›

Without proof of special damage means, that the Plaintiff need not prove that she has suffered any resulting damages, as any damage is presumed because of the nature of the defamation.

What is the difference between nominal and actual damages? ›

Nominal damages are awarded only in circ*mstances where a court has determined a plaintiff didn't really suffer any type of financial loss despite being wronged. Actual damages, on the other hand, are compensation for actual financial loss a plaintiff experiences and are paid after prevailing in a civil claim.

What is the difference between direct damages and actual damages? ›

Direct damages, also known as actual damages, are those damages which are the necessary and usual result of the defendant's wrongful act; they flow naturally and necessarily from the wrong.

What are the three types of damages? ›

Personal injury cases can involve three types of damages: economic, non-economic, and punitive damages. Economic and non-economic damages are the most common awards. Together, they are called “compensatory” damages. Courts award punitive damages (also called “exemplary” damages) more rarely.

Are emotional damages actual damages? ›

Emotional distress is recognized as a compensable damage in a California personal injury case. If a victim can prove that he or she suffered emotional distress as an outcome of the accused party's negligence, he or she can recover compensation.

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