Damages Principles II
General
The law on damages is almost entirely judge made. There is very little statutory law which is of relevance. Accordingly, the principles are found in various cases. The principles on which damages are assessed and awarded have evolved over time.
In civil claims, damages which are monetary compensation for loss or injury are the principal remedy. The law does not punish breaches of civil obligations. If it is not economic to pursue breach of a civil obligation, then legal action and a judgment may be taken in vain. Indeed, the claimant may be penalised in costs.
In most cases, the law does not grant damages / compensation where there has been no measurable financial loss. This is economically justifiable, as civil law seeks to compensate, and but not to punish. In many cases, the defendant will not have the means to the pay damages and costs. An order compelling a course of action will not be awarded in place of damages, merely because the defendant does not have the means to pay.
Bases of Compensation
In general terms, the extent of compensation available for civil wrongs is significantly greater than for breach of contract. In contract law, the extent of recovery is narrower and is limited to loss that arises the natural course of events.
Traditionally, the courts did not award compensation for mental distress, loss or enjoyment or displeasure. The Irish courts have been relatively willing to allow a head or category of compensation for stress and anxiety, in a number of circumstances, including employment and domestic building contract cases.
Where there have been serious defects in residential accommodation, compensation has been awarded for inconvenience where remedial works have been required. Even in commercial agreements, exceptionally a high handed breach may lead to awards of compensation for anxiety and distress thereby occasioned.
The availability of damages for mental distress may be rationalised on the basis of foreseeability of loss. In the cases of some kinds of contract, mental suffering, anxiety and distress is foreseeable and predictable such.
Restitutionary Damages
Restitutionary damages seek to unwind unjust enrichment.
An account of profits it commonly granted under statutory powers in relation to the breach of intellectual property rights. In the case of trustees or fiduciaries who have committed a wrong restitutionary damages may be allowed by way of an account of profits.
Exemplary & Aggravated Damages
Exemplary damages or punitive damages are broadly the same things. They may be awarded where the court shows its displeasure at the defendants’ actions.
Aggravated damages lie between ordinary damages and punitive damages. Aggravated damages may be awarded as additional compensation, where the injury has been caused or exacerbated by the conduct of the defendant. There may be an element of punishment involved. They may recognise the added hurt or insult to a claimant who has been wronged and/or may condemn the cavalier and outrageous conduct of the defendant.
Aggravated damages may arise by reason of the manner in which the wrong was perpetrated. There may be elements of oppressive behaviour, arrogance or outrage in his conduct.
The misconduct may occur after the commission of the wrong such, in some cases where it is warranted, by refusal to apologise or ameliorate the harm done. The wrongdoer may have made threats, repeated the wrong or engaged in like the conduct up to and including in the defence of a claim and the conduct of the trial.
Contemptuous Damages
Contemptuous damages refer to damages awarded where a claimant wins what his behaviour is so disproved by the court but nominal damages only are granted. They have been sometimes awarded in defamation cases, there has been a technical defamation, but where the jury has concluded that the defendant’s reputation.is such that it does not merit substantial compensation.