Legal Definitions - due compensation

Due compensation refers to the appropriate, fair, and legally mandated payment or remedy provided to an individual or entity for a loss, injury, or the taking of property or rights. It aims to restore the affected party to the position they would have been in had the event not occurred, or to provide them with what they are legally entitled to receive under the law.

Here are some examples illustrating the concept of due compensation:

• Government Acquisition of Property: Imagine a state government decides to build a new highway that requires acquiring a portion of a private farm. Under the principle of eminent domain, the government has the right to take private property for public use, but it must provide the landowner with due compensation. This compensation would typically include the fair market value of the land taken, any damages to the remaining property, and potentially relocation assistance, ensuring the farmer is not financially harmed by the government's action.

• Breach of Contract: Consider a situation where a catering company is hired to provide food for a large corporate event, but on the day of the event, they fail to show up, leaving the corporation without food for its guests. The corporation would likely seek due compensation from the catering company. This could include the cost of finding an emergency replacement caterer, any additional expenses incurred, and potentially compensation for damage to the corporation's reputation or goodwill due to the incident.

• Unpaid Wages: Suppose an employee works overtime hours for several weeks, but their employer intentionally fails to pay them for those additional hours, violating labor laws. The employee would be entitled to due compensation for the unpaid wages. This would involve receiving the full amount of overtime pay they are legally owed, and in some jurisdictions, could also include additional penalties or damages to ensure the employer complies with wage laws.