Also known as:additional damage · further damages · supplementary damages
Written by attorneys · grounded in primary & secondary sources — see below
An award of damages sufficient to give the recipient of a fraudulent misrepresentation in a business transaction the benefit of his contract with the maker, provided the damages are proved with reasonable certainty.
Sources & Authorities
How it applies
Common Examples
6
Fraudulent Production Capacity Claim
Apex Dynamics sold a production line to Aurora Biotech after falsely claiming it could produce 200,000 units monthly. Aurora entered long-term supply contracts based on that figure and later proved with detailed records the profits it would have earned at the represented capacity. The court awarded Aurora the additional damages needed to realize the expected benefit from the transaction.
Appeal Affirmance Penalty Award
After losing at trial, Anthony Arnold appealed a judgment against Arcadia Retail. The appellate court affirmed without modification and imposed an affirmance penalty calculated as additional damages to compensate the appellee for the costs of defending the appeal.
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Uniform Acts
Restatements
Dictionaries
Burlington Northern Railroad Co. v. Woods480 U.S. 1, 4–5 (1987)
Concrete Harm in Data Claim
TransUnion reported inaccurate information about Alan Ackerman that created a concrete risk of harm. Ackerman proved the resulting pecuniary losses and recovered additional damages beyond the statutory violation itself.
TransUnion LLC v. Ramirez141 S. Ct. 2190 (2021)
Punitive Damages Enhancement
A jury awarded Alice Atkins compensatory damages for fraud by Avalon Pharmaceuticals. The court then added further damages to punish the defendant's conduct and deter similar misrepresentations in future business dealings.
Pacific Mutual Life Ins. Co. v. Haslip499 U.S. 1, 36 (1991)
Bankruptcy Claim Augmentation
Arthur Abrams asserted a fraud claim against a debtor in bankruptcy proceedings. The court permitted recovery of additional damages beyond the base loss once the claim was established with reasonable certainty under applicable standards.
Stern v. Marshall564 U.S. 462, 131 S. Ct. 2594, 180 L. Ed. 2d 475 (2011)
Comparative Fault Adjustment
Albert Allen suffered injury in a multi-party accident involving American Motorcycle Association events. The court calculated additional damages after applying comparative fault principles to allocate responsibility among the defendants.
American Motorcycle Association v. Superior Court20 Cal.3d 578, 590, 578 P.2d 899, 906, 146 Cal.Rptr. 182, 189
Common questions
Frequently Asked
3
What must a plaintiff prove to recover additional damages in a fraudulent misrepresentation case arising from a business transaction?+
The plaintiff must prove the additional damages with reasonable certainty and show they are sufficient to give the benefit of the contract induced by the misrepresentation.
Supporting sources
How do additional damages differ from basic out-of-pocket losses in fraud actions?+
Basic out-of-pocket losses restore the difference between what was paid and received. Additional damages go further by awarding the benefit of the bargain when that amount can be proved with reasonable certainty.
Supporting sources
Can lost profits qualify as additional damages in a business fraud claim?+
Yes. When the plaintiff proves with reasonable certainty the profits that would have been earned if the fraudulent representation had been true, those lost profits are recoverable as additional damages.
Supporting sources
480 U.S. 1, 4–5 (1987)Civil Procedure
…interposed for delay, Montgomery Light & Water Power Co. v. Thombs , 204 Ala. 678, 684, 87 So. 205, 211 (1920), and to provide “additional damages” as compensation to the appellees for having to suffer the ordeal of defending the judgments on appeal. Birmingham v. Bowen , 254 Ala. 41, 46-47, 47 So. 2d 174, 179-180 (1950). Petitioner…