What Are Special Damages? Definition & Examples (2024)

Table of Contents

Show more

Most people who file civil lawsuits seek compensation for damages. The purpose of their claim is to recover monetary payment for economic losses the defendant caused them to experience, as well as to recover payment for non-financial losses in certain circ*mstances.

In personal injury claims, special damages refer to damages with costs that can be clearly determined. For example, special damages may include:

• Repairs of a vehicle made necessary by a car accident
• Actual medical expenses incurred by a plaintiff as a result of someone causing them injury
• Property damage caused by a defendant’s negligence or intentional wrongdoing

In personal injury claims, special damages are an alternative or addition to general damages.

While it is easy to determine a dollar amount for special damages because the actual financial loss a plaintiff experienced can be proved with bills and receipts, it’s more difficult to estimate general damages. General damages refer to things like pain and suffering and emotional distress, which is not very easy to put a price on.

In contract law, special damages have an entirely different meaning. Also known as consequential damages, special damages are irregular damages that are triggered as a result of the contract being breached.

Special losses are actual losses incurred and a plaintiff may be required to show the defendant knew of the special circ*mstances in order to be awarded special damages.

For example, say a plaintiff entered into a contract to order a part from a defendant. And, say the plaintiff told the defendant the part was needed to produce an item for a consumer’s wedding on a specific date. If the part was late and the plaintiff couldn’t produce the item before the wedding, the plaintiff would lose the sale.

In this circ*mstance, the plaintiff could seek compensation for loss of the profits from the delayed shipment of the item if the contract terms required timely shipment. The lost profit is an example of special damages and the defendant is liable for the loss as long as the defendant was aware of the importance of timely delivery.

Other possible types of special damages include lost time; damage to a company’s reputation or lost operating revenue as a result of a contractual breach.

In any case, whether it is a tort claim or a contract case, it is important for a plaintiff to be able to provide proof of their losses.

In a breach of contract claim, for example, a plaintiff is awarded special damages only if they showed that the losses were reasonably foreseeable, the losses can be calculated and the losses were caused by the breach. In a tort claim, on the other hand, the plaintiff is awarded special damages if they prove actual financial loss happened because of a defendant’s negligence or wrongdoing.

It can sometimes be difficult to provide sufficient proof of special damages in both tort and contract claims. Plaintiffs may need to hire expert witnesses, provide documentation and offer other evidence necessary to show the court that the defendant should compensate them for these types of losses.

An experienced attorney can help plaintiffs go beyond answering the question, what are special damages. An attorney can help a plaintiff to provide the proof necessary to be awarded monetary payment for these types of damages.

It is important to find a lawyer with experience handling similar claim types. For example, you would want a tort lawyer to help you in a personal injury claim but a contract lawyer to provide you with representation in a breach of contract case.

Your attorney may also be able to help you negotiate an out-of-court settlement with a defendant that includes compensation for special damages if the defendant accepts responsibility. Or your lawyer may be able to assist in proving every element of your case –including the extent of special damages– so the court awards the compensation you deserve.