Legal Definitions - Money Damages

Money Damages refers to the financial compensation a court orders one party to pay another to make up for a loss or injury they have suffered.

Unlike a simple debt where the amount owed is clear and predetermined, the exact sum for money damages is not immediately obvious from the situation itself. Instead, a judge or jury (often called the "trier of fact") must carefully evaluate the evidence presented in a case to determine a fair and appropriate monetary value for the harm caused.

Here are some examples:

• Breach of Contract: A small business, "Custom Creations," contracts with a marketing agency, "Brand Boost," to design and launch a new advertising campaign by a specific date. Brand Boost fails to deliver the campaign on time, causing Custom Creations to miss out on a crucial sales period and lose potential revenue.

  If Custom Creations sues Brand Boost, the court would award Money Damages. The exact amount wouldn't be a fixed sum but would be calculated by the court based on evidence of Custom Creations' lost profits, additional costs incurred due to the delay, and any other financial harm Custom Creations can prove it suffered because of Brand Boost's failure to meet the deadline.

• Personal Injury: A pedestrian is severely injured when a delivery truck driver, distracted by their phone, runs a red light and hits them. The pedestrian suffers multiple broken bones, requires extensive surgery, prolonged physical therapy, and is unable to work for over a year.

  If the pedestrian sues the truck driver and their employer, the court would award the pedestrian Money Damages. This would include compensation for medical bills, lost wages, pain and suffering, and potentially future medical care or lost earning capacity. These amounts are not pre-set but are determined by a judge or jury after reviewing medical records, expert testimony, and other evidence to assess the full extent of the injury and its financial and personal impact.

• Property Damage: A homeowner hires a landscaping company to install a new sprinkler system. Due to negligent installation, a main water line is ruptured, causing significant flooding in the homeowner's basement, damaging furniture, electronics, and requiring extensive mold remediation.

  If the homeowner sues the landscaping company, the court would award Money Damages to cover the cost of repairing the basement, replacing damaged items, and the expense of mold remediation. The specific amount would be determined by the court based on repair estimates, replacement costs, and any other demonstrable losses the homeowner incurred due to the faulty work.