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Question 1

Types of Damages

Answer 1

1. Compensatory
2. Reliance
3. Restitutionary
4. Nominal
5. Punitive
6. Liquidated
7. Incidental
8. Litigation

Question 2

Compensatory Damages - Rule

Answer 2

Compensatory damages are intended to compensate the plaintiff for a legally recognized harm or injury. The award seeks to place the plaintiff in the same position they would have achieved had they not been harmed by the defendant’s tortious behavior.

Question 3

Compensatory Damages -Tort

Answer 3

Returns the plaintiff to their position prior to the tort action, including past, present, and future harms. Includes pain and suffering noneconomic damages and loss of enjoyment

Question 4

Compensatory Damages - Contract

Answer 4

Returns the plaintiff to their position had the defendant actually performed their contractual obligations (expectation) PLUS consequential and incidental damages, less any mitigation

Question 5

Revocation Damages

Answer 5

Plaintiffs can recover expenditures related to performance of contract, but the damages recovered may not exceed the contract price

Question 6

Restitutionary Damages

Answer 6

Following a total breach of contact by the defendant, the plaintiff can collect damages measured by the benefit conferred upon the defendant by the plaintiff

Question 7

Nominal Damages

Answer 7

Plaintiff’s award when there is an established cause of action but little to no harm or loss.

Question 8

Punitive Damages

Answer 8

When a defendant engages in serious misconduct with an improper state of mind, the plaintiff may pursue punitive damages that serve to punish the defendant’s ill will. Usually not awarded in excess of compensatory damages.

Question 9

Liquidated Damages

Answer 9

When the plaintiff and defendant had previously agreed in contract to enforce a certain measure of damages at breach, liquidated damages as contracted are proper. Enforceable if the amount is reasonable in light of the anticipated loss at contract formation OR actual loss caused by breach

Question 10

Incidental Damages

Answer 10

Reasonable expenses incurred in a transaction by reliance on the defendant’s performance - generally recoverable without special proof.

Question 11

Limitations on Damages

Answer 11

Causation
Foreseeability
Consequential Damages
Certainty
Lost profits/earnings
Avoidable Consequences
Reduction for benefits from Defendant’s conduct
Special Damages

Question 12

Prejudgment Injunctions

Answer 12

TRO
Preliminary Injunction

Question 13

Temporary Restraining Order (TRO)

Answer 13

Proper when there is a need to preserve the status quo until a preliminary injunction hearing can take place. Must not exceed 14 days, and can be obtained without notice to the defendant. Becomes effective upon notice to the defendant

Question 14

Preliminary Injunction

Answer 14

A hearing is held on the propriety of preserving the status quo, and can be effective until there is a final judgment. Cannot be issued unless the defendant has been given notice of the hearing.

Question 15

Factors to consider for a TRO or Preliminary Injunction

Answer 15

Inadequate remedy at law (P suffers irreparable harm w/o injunction)
Balancing of equities (P’s significantly greater hardship than D’s)
Likelihood that P will succeed on merits
Feasibility of enforcement

Question 16

Permanent Injunction

Answer 16

When a plaintiff can demonstrate they will suffer irreparable harm without an injunction and that their hardships will be significantly greater than the defendant’s a permanent injunction may be issued. Defendant may raise defenses of laches and unclean hands.

Question 17

Specific Performance