While the primary remedy in a San Diego business dispute 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.”
Key Takeaways of Why the Primary Remedy in a San Diego Business Dispute is Damages:
- The primary remedy in a San Diego or California business dispute is going to be financial damages.
- In specific cases involving real estate, fraud, or a breach of fiduciary duty, the cases become much more financially and legally complex.
- The victim of any breach of contract in California has a responsibility to “mitigate the damages.”
- In business, “damages” almost always equates to “money.”
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 (and punitive damages in cases involving fraud) 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.
Pro-Tip: “Knowing the facts, the damages, the law of the damages is key, because that gives your lawyer the ability to predict what would happen if you went to trial tomorrow and you won, what would you win? That’s it, that’s the number. Because in civil court, we’re only looking at dollar amounts, getting there, and understanding human nature. Preparation for my clients has to do with damages, the law and damages and the chronology of events, the facts, getting all the facts down and then informing my client.
We want to get the facts down and we want the evidence they have in chronological order, because that’s the best way to communicate to the other party, to a third party, to anyone is in chronological order. That’s how we think. Then I want to help our clients analyze the damages. Whether you are feeling like they owe you something, they’re not complying with the agreement or vice versa. So I want something more from you than just to analyze the damages, we need to analyze what it’s going to cost to fight. And also look at the future business. Whether we can salvage this relationship, all of those important things should come into play, so that we can give good advice.
If you’re going to stay in business with each other, then you’re going to want additional clauses and assurances that this thing won’t happen again, you’re going to want to give some kind of compensation or power, change the structure, do something to improve the situation. Those things we can handle because we have a transaction team here too. So when we acquire business, we’re already putting those kinds of clauses in. So you might be in a business dispute with a partner because you didn’t have those types of clauses in your agreement to begin with. And perhaps the resolution of your lawsuit will include having proper corporate documents to go forward.” – Dan Watkins, Founding Partner
The Primary Remedy in a San Diego Business Dispute is Damages – Money!
The primary remedy in a San Diego business dispute is damages. That is true here in San Diego, and throughout the State of California. This is about money and setting things right, and/or making sure it doesn’t happen again. 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 our podcast Episode 11 – Business Dispute Resolution as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
Meet Daniel Watkins:
Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through. Dan enjoys digging into the facts and finding creative solutions to problems. He contributes his insights candidly and constructively.
Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.
Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.
He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.
THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR
Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.
In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.
