What are the damages in a San Diego breach of contract case and why do they matter? Damages are the legal remedy in a civil court case such as a breach of contract. Damages represent the financial consequence of the failure to perform on a contract, in the context of a breach of contract case. In essence, damages are the financial equivalent of the additional costs the victim of a breach of contract must expend to achieve the “benefit of the bargain” contained in the original contract. Damages may also reflect a punishment for causing the legal issue as in cases involving fraud or a particular level of deception or neglect.
Economic Damages
What are the economic damages? Economic damages must be able to be substantiated, verifiable and represent genuine cash value and not just an ideal value for time or effort. When the other party failed to perform, did you have to go out and find another vendor? Was that vendor more expensive? What was the difference in cost between the original contractor, and the ultimate solution? How much money did it cost you to go and find the replacement vendor?
Arguments about the loss of potential business are actually a much more complex legal issue. In order to establish financial damages based upon lost business or opportunity cost there must be clearly identifiable and documented costs associated with the breach. This is a difficult legal standard to reach.
Non-Economic Damages
Non-economic damages are available in some civil cases, but not usually a breach of contract. Examples of non-economic damages include things such as pain and suffering from an injury. An argument may be made that non-economic damages should be awarded to offset damage to one’s business reputation and the harm done to the goodwill or reputation of the business directly resulting from the breach of contract.
Punitive Damages
The damages in a San Diego breach of contract may include punitive damages, especially in cases involving fraud or exceptional deception. Punitive damages are designed to punish a party for neglectful, dangerous, fraudulent or egregious conduct and to prevent anyone else from repeating that behavior in the future. The burden to recover punitive damages is much higher than the “preponderance of the evidence” required for economic and non-economic damages. The need for punitive damages requires the defendant acted with malice, fraud or oppression by the legal standard of “clear and convincing evidence.”
Mastery of the Chronology and the Damages in a San Diego Breach of Contract
The attorneys at the Watkins Firm have more than four decades of experience in breach of contract cases, and we can tell you from experience – breach of contract cases and business litigation are all about the damages. Our experienced, proven business dispute resolution attorneys develop a mastery of the chronology of events and the damages in a San Diego breach of contract case. This provides the leverage needed to gain the attention of the other party and their counsel and work toward a resolution of the case that reflects our client’s goals and objectives.
We work to clearly identify and document every financial implication to maximize recoverable damages. We counsel our clients on their obligation to mitigate the damages, and the steps required to do so. We help them to establish a clear goal for the resolution of the dispute, and help to achieve that objective in the fastest and most cost-effective manner possible.
If you are concerned about a breach of contract we invite you to review our podcast Episode 5 – Breach of Contract as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. What are damages in a breach of contract case? The failure to mitigate the damages in a breach of contract will limit or outright prevent you from being able to pursue the legal damages (financial recovery) you are entitled to by law.
