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Simple English definitions for legal terms
consequential damages
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A quick definition of consequential damages:
Consequential damages, also known as special damages, are a type of compensation that a person can ask for when someone else's actions cause harm that leads to additional losses or expenses. These damages may not be a direct result of the initial wrongdoing, but they are a natural consequence of it. For example, if a car accident caused a person to miss work and lose income, the lost wages would be considered consequential damages. Consequential damages are different from general damages, which are compensation for more direct harm like physical injuries or emotional distress.
A more thorough explanation:
Consequential damages
Consequential damages, also known as special damages, are a type of compensation that a plaintiff can seek from a defendant for harm caused as a result of the defendant's actions. These damages may not necessarily be a direct result of the defendant's wrongful action, but rather a natural consequence of the act.
- A construction company fails to complete a project on time, causing the owner of the building to lose out on potential rental income. The owner can seek consequential damages for the lost income.
- A car manufacturer produces a faulty vehicle that causes an accident, resulting in the driver's medical bills and lost wages. The driver can seek consequential damages for the financial losses incurred as a result of the accident.
These examples illustrate how consequential damages are a form of compensation for losses that are a direct result of the defendant's actions, but not necessarily a direct result of the wrongful act itself.