Legal Definitions - Special damages

In legal terms, special damages refer to specific, quantifiable financial losses that a party suffers due to another's wrongful act or breach of contract. The precise meaning can vary slightly depending on whether the case involves a tort (a civil wrong) or a breach of contract.

In Tort Law

In tort law, special damages are the actual, measurable financial losses that can be precisely calculated and documented. These are often out-of-pocket expenses or lost income directly resulting from the harm caused. They are distinct from "general damages," which cover non-economic losses like pain and suffering, which are harder to assign an exact monetary value.

• Example 1: A pedestrian is hit by a negligent driver and breaks their leg. The pedestrian incurs ambulance fees, hospital bills, physical therapy costs, and loses two months of wages from their job.

  Explanation: The ambulance fees, hospital bills, physical therapy costs, and lost wages are all special damages because they are specific, documented expenses and income losses that can be precisely added up. They represent direct financial harm caused by the driver's negligence.

• Example 2: A homeowner's property is damaged when a neighbor's poorly maintained tree falls onto their garage, destroying the structure and a valuable antique car inside.

  Explanation: The cost to repair the garage and the market value of replacing the antique car are both special damages. These are specific, calculable financial losses directly attributable to the neighbor's negligence in maintaining their tree.

In Contract Law

In contract law, special damages (often called consequential damages) are losses that do not flow directly and immediately from the breach of contract but are a foreseeable consequence of the breach. For these damages to be recoverable, the breaching party must have known or reasonably should have known about the potential for these specific losses at the time the contract was made. They are distinct from "general damages," which are the direct and expected losses from a breach (e.g., the difference in cost to buy goods elsewhere).

• Example: A bakery contracts with a specific flour supplier for a special type of flour needed for a large, pre-ordered wedding cake. The supplier breaches the contract by failing to deliver the flour on time, and no other supplier has that specific type of flour readily available. As a result, the bakery cannot bake the wedding cake, loses the payment for the cake, and also loses the deposit for a future catering contract with the same client who is now dissatisfied.

  Explanation: The lost payment for the wedding cake is a direct loss. However, the loss of the deposit for the future catering contract is a special damage. It's a foreseeable consequence of the flour supplier's breach, assuming the supplier was aware that the bakery had specific, time-sensitive orders dependent on their delivery and that failure could impact future business relationships. It's not a direct cost of the flour itself, but a secondary financial impact.