Angela H. France

What Types of Damages are Available in a Business Case

If you are heading down the path towards litigation, an important issue to consider and analyze are the types of damages available in your business law case.

The news frequently reports on large verdicts obtained in court cases. But in order to understand the amount of any verdict, you really have to view the types of damages which were awarded.

A case in point is the matter of Dupont v. Kolon Industries, which produced one of the largest verdicts ever in Virginia. This case involved an intellectual property dispute and the jury awarded damages of over $900 Million. Dupont kept the argument for damages straightforward and requested damages for unjust enrichment. This type of damage seeks to deprive the defendant of whatever gain or benefit was obtained from the wrongful act and award it to the plaintiff. It seems clear that the jury found that Kolon Industries greatly benefited from its wrongful act.

But each business litigation case is unique, and the damages flowing from the defendant's wrongful conduct and the types of damages available will vary.

I. Breach of Contract.
One of the most common claims in a business case is breach of contract.
Depending on the nature of the breach, you may have several different
remedies available to you.

First are the compensatory damages: These damages focus on nature and
extent of your business' injuries with the aim of making your business whole
again.

There are two types of compensatory damages:
•Expectation Damages: Expectation damages are exactly what they sound like -- damages covering what you expected to receive from the contract. For example, your business provided services and expected to receive the payment set forth in your contract. But, defendant has failed to pay.

•Consequential or Special Damages: Special damages cover losses besides the contractual losses. Such as, loss of business profits or business opportunities. Even damage to your business' reputation.

I. Equitable Remedies: Money damages may not always remedy your business' situation, however. If not, equitable remedies may be available for a breach of contract. This could include requesting that the Court require the other party to specifically perform their end of the contractual bargain or allowing you to rescind or cancel the contract.

II. Business Torts and Statutory Violations.

Other business law claims include torts or statutory violations.

Business Tort Damages: A business tort is a civil wrong, such as fraud or interference with a contract. A powerful type of damage allowed in a tort case is punitive damages. A punitive damage awards is not connected to your injury but is awarded to your business in order to punish the other party and deter them from future wrongful conduct.

Damages for Statutory Violations: The defendant's wrongful conduct may be a violation of a statute. If so, the statute at issue may specifically provide for certain types of damages. In Virginia, for example, computer trespass statutory violations specifically allow for the recovery of loss profits.

As you can see, considering the damages available in connection with your claims against the other party is important from the outset of litigation. This determination should be made along with your overall development of a trial strategy.