Also known as: measures of damages · quantum of damages
Written by attorneys · grounded in primary & secondary sources — see below
The standard or formula used to calculate the compensation recoverable for a legal injury or breach. The formula identifies the components of loss that may be included and any required offsets or limitations.
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Matthew Martinez paid an architect and obtained permits for a new warehouse before the general contractor repudiated the construction contract. Martinez sued and elected to recover his out-of-pocket preparation costs rather than lost profits. The court awarded those expenditures because the contractor could not prove with reasonable certainty that Martinez would have lost money on the completed project.
Musa Mensah leased a downtown storefront for a five-year term. After repeated failures to repair the HVAC system, Mensah lawfully terminated and relocated. The court allowed recovery of the fair market value of the remaining lease term measured on the termination date, together with foreseeable build-out costs, without double counting.
Miguel Mendoza's estate sued after a defective product caused his death. The court instructed the jury that the amount recoverable depended on the wording of the state wrongful death statute and its judicial interpretation rather than a uniform common-law formula.
Meridian Motors contracted to buy 200 engines at a fixed price. When the seller repudiated, Meridian purchased replacements on the open market two weeks later. The court measured damages by the difference between the market price on the date Meridian learned of the breach and the contract price, plus incidental costs.
Maria Morales sought an injunction to stop a neighbor's ongoing noise nuisance. The court weighed the adequacy of a damages award by considering the nature of the interest harmed, the difficulty of proving the amount of loss, and the cost of repeated suits before denying injunctive relief.
Metro Bank purchased specialized software under an agreement that limited remedies to repair or replacement. When the software failed, the court enforced the limitation and measured damages solely by the cost of repair rather than allowing broader consequential recovery.
A party may recover reliance damages, including preparation expenditures, as an alternative when expectation damages are difficult to prove. The breaching party may reduce the award by proving any loss the injured party would have suffered even if the contract had been performed.
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A tenant may recover the fair market value of the leasehold at termination, reasonably foreseeable pre-default expenditures, and relocation costs, provided there is no double recovery.
…of damages is to render compensation to the injured party. Authorities and treatises were cited, including Sedgwick on the Measure of Damages, where the rule is stated that in contract cases damages may be those which both parties might fairly be supposed to have contemplated at the time of contracting. It was argued that fraud…
…of a default on premiums, resulting in lapse of the policy); see also Restatement (Second) of Contracts § 90(1) (1981). The measure of damages also appears to be more flexible than for breach of contract. ("The remedy granted for breach may be limited as justice requires." Id. ) [^maj-6]: New York Times v. Sullivan , 376 U.S.…
…work. In such cases, the usual rule of damages for breach of warranty in the sale of chattels is applied and it is held that the measure of damages
…acceptance of independent consideration to support such a promise. [^maj-24]: We need not here resolve questions concerning the measure of damages
…hereinbefore noted, judgment was thereupon entered for the respondents in that amount. The appellants concede that the measure of damages
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The measure depends on the wording of the statute creating the right of action and the courts' interpretation of that statute.
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Damages equal the difference between the market price at the time the buyer learned of the breach and the contract price, plus incidental and consequential damages, less expenses saved.
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Parties may agree to limit or alter the measure of damages, such as by restricting recovery to repair or replacement, unless the limitation fails of its essential purpose or is unconscionable.
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Courts consider the nature of the interest harmed, the difficulty of proving damages, the cost of assessing them, the collectibility of a judgment, and the burden of multiple suits.
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