Also known as: actual losses · actual damages
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An amount of financial detriment caused by an insured person's death or an insured property's damage, for which the insurer becomes liable. It results from the real and substantial destruction of insured property.
An amount of financial detriment caused by an insured person's death or an insured property's damage, for which the insurer becomes liable. It results from the real and substantial destruction of insured property.
Select any source to read its text and confirm it supports the definition.
The reasonably foreseeable pecuniary harm that resulted from the offense or breach. It measures compensation for direct, consequential, or incidental injuries or losses actually suffered, as distinguished from presumed or punitive damages.
Select any source to read its text and confirm it supports the definition.
The reasonably foreseeable pecuniary harm that resulted from the offense or breach. It measures compensation for direct, consequential, or incidental injuries or losses actually suffered, as distinguished from presumed or punitive damages.
Each sense below has its own examples, sources, and questions.
Azure Solutions contracted with Artemis Logistics for software implementation. The agreement included a clause requiring payment of $500,000 upon early termination. After Artemis terminated early, Azure proved its actual expenditures and lost profits totaled only $120,000. The court refused to enforce the full clause amount.
Adrian Aguilar and Amelia Amari became engaged and incurred wedding preparation costs. After the engagement ended, Amelia sought recovery for those expenditures plus reputational harm. The court permitted recovery only for the documented preparation expenses.
Anthony Arnold published statements harming Albert Allen's professional reputation. Allen presented evidence of lost consulting contracts but no presumed harm. The jury awarded only the amount supported by the documented contract losses.
Audrey Ashton sold shares to a buyer who later proved the price was inflated by undisclosed fraud. The court measured recovery as the difference between the fair value received and the value that would have been received absent the fraud.
Astra Aerospace was found liable for bad-faith denial of an insurance claim. The jury awarded compensatory damages based on the insured's proven medical bills and lost wages plus a large punitive sum. The court scrutinized the punitive portion separately from the actual loss award.
Argonaut Shipping sued a reviewer for a critical product report. The court examined whether the record contained sufficient evidence of actual lost sales before upholding the compensatory award.
Actual loss is the reasonably foreseeable pecuniary harm that resulted from the offense. Intended loss is the pecuniary harm the defendant purposely sought to inflict even if impossible or unlikely to occur. Courts use the greater of the two amounts.
Supporting sources
A clause is enforceable only when the amount is reasonable in light of the anticipated or actual loss caused by the breach and the difficulties of proof of loss. An unreasonably large amount is unenforceable as a penalty.
Recovery may include actual damages such as expenditures made in preparation for marriage, loss to reputation, mental anguish, and injury to health. Recovery is not allowed for loss of expected benefits such as social or financial position.
States may not permit recovery of presumed or punitive damages when liability is not based on a showing of knowledge of falsity or reckless disregard for the truth. Compensation is limited to actual injury shown by the plaintiff.
Supporting sources
The correct measure is the difference between the fair value of what the seller received and the fair value of what the seller would have received absent the fraudulent conduct. When the defendant received more than the seller's actual loss, damages equal the defendant's profit.
Supporting sources
…need not be alleged or proved but are presumed," and "punitive damages may be awarded by the jury even though the amount of actual damages is neither found nor shown." An award of punitive damagesas distinguished from "general" damages, which are compensatory in natureapparently requires proof of actual malice under Alabama…