Legal Definitions - pecuniary loss

Pecuniary loss refers to a loss that can be calculated and compensated with money. It represents a financial detriment or damage that has a quantifiable monetary value. This term is often used in legal contexts, such as personal injury claims, contract disputes, or property damage cases, to describe the specific financial harm suffered by an individual or entity.

Here are some examples illustrating pecuniary loss:

• Example 1: Car Accident Damages

  Imagine a situation where a driver negligently crashes into another person's car. The victim's car sustains significant damage, requiring expensive repairs. Additionally, the victim suffers whiplash injuries, leading to medical bills for doctor visits, physical therapy, and prescription medication. Because of the injuries, the victim also has to miss several weeks of work, resulting in lost wages.

  How it illustrates pecuniary loss: The cost of repairing the damaged car, the medical expenses for treating the injuries, and the income lost due to being unable to work are all direct financial losses that can be precisely calculated in monetary terms. These are all examples of pecuniary loss.

• Example 2: Breach of Business Contract

  A small bakery signs a contract with a flour supplier for a specific type and quantity of flour to be delivered by a certain date for a large holiday order. The supplier fails to deliver the flour on time, causing the bakery to miss its deadline for baking and selling the holiday goods. As a result, the bakery loses the revenue it would have earned from those sales and also incurs penalties for failing to fulfill its own customer orders.

  How it illustrates pecuniary loss: The lost profits from the unbaked holiday goods and the penalties paid for not fulfilling customer orders are direct financial consequences of the supplier's breach of contract. These are measurable financial losses that the bakery suffered.

• Example 3: Wrongful Termination

  An employee is unjustly fired from their job without proper cause, violating their employment contract. After the termination, the employee struggles to find comparable employment for several months. During this period, they lose out on their regular salary, health insurance benefits, and contributions to their retirement fund that their employer would have made.

  How it illustrates pecuniary loss: The lost wages from the date of termination until new employment is secured, the value of the lost health insurance coverage, and the missed retirement contributions all represent financial losses that can be quantified. These are direct monetary impacts on the employee's financial well-being due to the wrongful termination.