While the primary remedy for business litigation is damages there are occasions where our attorneys may seek an injunction to put a stop to harmful actions. However, in the majority of business-to-business disputes the bottom line is “damages.”
What are Damages in Civil Litigation?
There are several forms of potential damages in a civil dispute. In general, damages represent the difference between the terms of the underlying contract or agreement and the actual expense of receiving the “benefit of the bargain.” In other words, the parties entered into an agreement, and if it had been fulfilled as promised both parties would have received a benefit from that contract. The amount of recoverable damages are established by the measurable and provable amount of benefit or profit that was lost as a result of the breach of contract, as well as the additional costs borne to replace the breaching party and fulfill the terms of the original agreement. These are known as “ordinary damages.”
In cases of breach of fiduciary duty, shareholder disputes, fraud and other unfair business practices the victim may seek an injunction or ask the Court to order the other party or parties to “cease and desist” while the Court assesses the financial damages associated with the actions of the responsible party. California case law is well developed on these issues, although the process for calculating damages is quite legally complex.
Several Other Types of Available Damages in Many Business Litigation Cases
“Liquidated damages” are usually specified within the term of a contract. For example, a party in breach may be required to pay a specific amount of money for each day after the deadline imposed by the agreement. In cases of fraud and/or when the Court wishes to send a message to the “community” regarding the seriousness of the actions taken by a party the award may include “punitive damages.” Punitive damages are intended to serve two principal purposes: to punish wrongdoers financially and to set an example to deter other parties from similar action(s) in the future.
The Victim of a Breach of Contract must Mitigate the Damages
While the primary remedy for business litigation is damages there are defenses which may be mounted to reduce the exposure to potential damages. For example, once a breach of contract becomes apparent the party who has been injured (the party who has not caused the breach) is legally responsible for “mitigating the damages.” They must make every prudent, timely and reasonable effort and expenditure necessary to achieve the outcome of the original agreement, without unnecessary hardship. The jury in these cases is usually instructed that their award should include these expenses. The failure to mitigate the damages in these cases can actually result in the loss of the ability of a party to recover them in the future.
The Primary Remedy for Business Litigation is Damages – Money!
The primary remedy for business litigation is damages in San Diego and throughout California. This is about money and setting things right. It is about responsibility and upholding California business principles.
The Watkins Firm has over four decades of experience helping thousands of business clients to resolve business-to-business disputes and move forward. In the majority of cases, the best solution may not lie in taking the case through an extensive trial. We work to establish a productive working environment and common ground on our client’s behalf and to implement strategies that protect our clients’ interests while resolving the matter as quickly and profitably as possible. It may surprise you to learn that the skilled business dispute resolution attorneys at the Watkins Firm resolve the vast majority of these cases through effective, leveraged negotiation.
In fact, the If you are involved in a breach of contract, unfair business practices or other business dispute we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
