Compensation and damages

In a civil claim for compensation, damages are normally awarded by the court. In a contractual claim for compensation, damages are assessed on the following basis.

Contractual damages

The aim of contractual damages is to put the claimant in the position they would have been had the contract been upheld properly. In addition to this, in a contractual claim for compensation damages can be awarded for consequential loss (see the case of Hadley v Baxendale). Consequential loss is all losses that the claimant has incurred which have naturally arisen out of the defendant’s breach of contract. In contractual claims for compensation, damages for consequential loss can be notoriously difficult to quantify. It is recommended that you instruct a specialist legal expert to help assess the level of compensation you may be entitled to in a breach of contract claim.

Tortious damages

In a tortious claim for compensation, damages are assessed on the following basis:

The aim of damages is to put the claimant, so far as is possible, in the position they would have been had the damage not occurred. As in a contractual claim, damages can be awarded for consequential loss.

It should be noted that in all claims for damages, the claimant is under a duty to mitigate their losses. This means that claimants are obliged to minimise the damage/loss they suffer. If a claimant fails to mitigate their loss, the compensation or damages awarded by a court may be reduced.

If you would like to obtain legal advice and information on bringing or defending a claim for compensation, Contact Law can put you in touch with a local specialist civil litigation solicitor free of charge. So, if you have any questions or would like our help in finding local civil litigation solicitors please call us on 0800 1777 162 or complete the web-form above.