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Damages
As contrasted with the many different types of equitable remedies that
may be awarded in favor of a prevailing litigant, the plaintiff's primary
legal remedy is the recovery of a money judgment for damages. Money
damages are assessed against litigants for a variety of different reasons.
o Without question the most important reason for awarding money
damages in any litigated case is to compensate the injured party for
legally recognized actual harm or loss caused by the offending party.
These damages are known as compensatory damages.
o Damages can serve other purposes as well.
o For example, sometimes the actual monetary amount of a party's
damages cannot be determined or computed with any degree of
certainty, or the amount of the damages actually sustained may simply
be insignificant. Nevertheless, in these situations damages may still be
assessed in an appropriate case, if only to identify which party has
"prevailed" in the litigation. These damages are often referred to as
"nominal" damages, or damages in name only.
Actual Damages
Use of the term actual damages with reference to specific damages
terminology is somewhat unfortunate, because it is often applied
indiscriminately to many different damages and damage-related contexts,
resulting in unnecessary confusion.
o For example, sometimes the term actual damages is used merely as a
reference to whatever harm results from a particular incident or
transaction.
When used in this sense, the phrase actual damages really doesn't
have anything to do with the concept of damages at all. Instead, it
is simply a way of indicating the existence of the requisite causal
relationship between the claimed injury and the defendant's alleged
conduct.
Stated differently, this use of the term actual damages is really
more akin to the notion of " cause in fact" than to anything related
to the question of money damages.
Another use of the term actual damages refers to all those types of
damages that can be proven with monetary specificity. When used in this
manner, actual damages is really just synonymous with the term
pecuniary damages. Again, this usage is unfortunate, because it fails to
include the various non-pecuniary damage components (for example,
"pain and suffering" damages or disability damages) that may also be
actually recoverable in many types of actions.