What kind of damages can be sought in a business litigation case?
In a business litigation case in California, damages are typically pursued in an effort to allow the plaintiff to recover financial losses from another party. Generally, damages may include compensatory damages, which make the plaintiff whole for their losses; consequential damages, which compensate a plaintiff for any anticipated losses that were a result of the defendant’s actions; punitive damages, which punish the defendant for their wrongful conduct; and, in some cases, nominal damages, which is a small sum of money awarded to recognize that the defendant’s actions were wrong even if the plaintiff lost no money from the conduct. Compensatory damages are the most common and may include reimbursement for out of pocket expenses, lost profits, mental anguish, and pain and suffering. Consequential damages, on the other hand, may include expenses incurred due to the defendant’s actions, such as a loss of business opportunities; expenses related to the cost of doing business, such as the cost to hire a replacement worker; and future damages, such as lost wages due to future medical bills. Punitive damages are meant to punish the defendant, not necessarily to compensate the plaintiff, and are only awarded in rare cases where the defendant’s behavior was especially nefarious. Nominal damages, the least common type of damage awarded, are typically only awarded if no other damages are considered appropriate.
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