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General Principles Governing Damages Compensation: Harris vs. Peters

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General Principles Governing Damages Compensation: Harris vs. Peters
Fall 2012 Remedies Outline
GENERAL PRINCIPLES GOVERNING DAMAGES
COMPENSATION
Harris v. Peters
Compensatory damages are those awarded to a person as compensation, indemnity, or restitution for a wrong or injury sustained by him. The purpose of compensatory damages is to make the injured party whole and restore him to the position he was in before the loss, but not to enable him to make a profit or windfall. When personal property is destroyed or rendered useless, the measure of damages is the fair market value of the thing in question immediately prior to its destruction.
DIRECT AND CONSEQUENTIAL DAMAGES
New Valley Corp v. United States For damages for breach of contract, the breach must be seen as the proximate cause of injury to the plaintiff. Direct damages, or general damages, are damages measured by the loss of the value of the performance promised by the breaching party. They are based on the value of the very thing to which the plaintiff was entitled, encompassing paper losses or unrealized losses and they are determined as of a particular date, usually by market measures.
Consequential damages, or special damages, are damages that result as a secondary consequence on the defendant’s non- performance. They arise from the interposition of an additional cause without which the act done would have produced no harmful result. Consequential damages are distinguishable from general damages in that rather than being based on the value of the promised performance itself, they are based on the value of some consequence that that performance may produce. Section 2-719 of UCC: Liquidation and Limitation of Damages p.32
CERTAINTY
Kenford Co, Inc. v. County of Erie A nonbreaching party is only entitled to damages within the contemplation of the parties at the time of contracting. Damages which may be recovered by a party for breach of contract are restricted to those damages which were reasonably foreseen or

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