One of the more misunderstood concepts by persons or entities that wish to pursue a lawsuit against someone who has breached an agreement is damages.
This blog has one point. That point is: when do you have actual economic damages resulting from a breached agreement?
Damages in contracts are analogous to in-laws. If you are not married, you do not have in-laws. These wonderful people may act like in-laws, criticize your dreams, contest your right to carve the Thanksgiving Turkey and give unsolicited advice on child raising, or even provide presents on your birthday as “Mom and Dad,” but under law, if you aren’t married to their child, they are NOT your in-laws. Period. Period. Period.
Much like the in-law situation, damages are the same type of thing in a lawsuit. If you haven’t incurred a financial loss, if you have not paid any amount to heal a loss caused by another’s agreement breach, you pretty much do not have damages.
Let’s Look at a Definition: What Are Economic Damages?
Economic damages refer to measurable, quantifiable financial losses that a plaintiff incurs due to a defendant’s wrongful actions. Economic damages in a contract dispute refer to monetary losses directly resulting from a breach of contract. These damages are also known as compensatory damages because they aim to reimburse the plaintiff for tangible losses. And these economic damages must be supported by objective evidence, such as receipts, bills, and financial statements.
You've Got to Prove It: Challenges Proving Economic Damages
Even when a breach is clear, and everyone in your Facebook Group hearing your story believes you have been wronged, you not only have to be damaged (see above), you have to provide evidence that you were damaged. It’s like seeing Bigfoot. You can describe the encounter, but providing a grainy photograph will not win you supporters. Your evidence needs to be documented with actual documentation, such as receipts for costs you have already paid for, not estimates. These have to be real. In essence you paid $XXX for replacement of the Inferadon Tralfaz tube that your neighbor’s kid broke and to replace it, you had to pay and DID pay $YYY. The amount cannot be speculative, a.k.a. “I guess it would be about ZZZ to fix the tube.”
Look, it hurts to be wronged. Lawsuits are sometimes the answer if, after trying to communicate with the agreement breacher, they won’t compensate you for your loss. But being prepared, actually paying for the loss, and documenting it goes a good way towards proving an essential element of an agreement breach.
Call Sprigg-Novak Law
If you’re involved in a contract dispute, consulting with Sprigg-Novak Law Firm is a good way to review your matter and evidence. Call us at 214-216-1667.
We are dedicated to protecting our clients’ interests, and always maintaining ethical and legal counsel. With decades of experience at all levels of the Courts, the team at Sprigg-Novak Law is ready to get to work for you.
