Consequential damages

Loss in value of a property caused by the taking of a nearby property or development on another property.
Example: See Severance Damages.

Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. Detriment that arises from the interposition of special, unpredictable circumstances. Harm to a person or property directly resulting from any breach of warranty or from a false factual statement, concerning the quality or nature of goods sold, made by the seller to induce the sale and relied on by the buyer.

In terms of the Uniform Commercial Code (UCC) — a body of law governing commercial transactions adopted by every state except for a few articles that were not adopted in Louisiana — consequential damages are injuries that result from a seller's breach of contract.

Such damages include any loss from general or particular requirements and needs of the buyer that the seller at the time of contracting had reason to know and that could not reasonably be prevented by cover, the purchase of substitute goods or other alternatives.

Judicial remedies

Legal remedies (Damages)

Compensatory damages Punitive damages Incidental damages Consequential damages Liquidated damages Reliance damages Nominal damages Statutory damages Treble damages Legal costs

Equitable remedies

Specific performance Account of profits Constructive trust Injunction · Restitution Rescission · Rectification Tracing · Declaratory relief

Related issues

Adequate remedy Election of remedies Provisional remedy

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Consequential damages, otherwise known as special damages, is one of the damages, the other being direct damages, that may be awarded to plaintiff in a civil action who claims that terms of an agreement were not honored.

When a contract is breached, the recognized remedy for an owner is recovery of damages that result directly from the breach, such as the cost to repair or complete the work in accordance with the contract documents, the loss of value of lost or damaged work. Consequential damages (also sometimes referred to as indirect or “special” damages), include loss of product and loss of profit or revenue and may be recovered if it is determined such damages were reasonably foreseeable or "within the contemplation of the parties" at the time of the contract. This is a factual determination that could lead to the contractor's liability for an enormous loss. For example, the cost to complete unfinished work on time may pale in comparison to the loss of operating revenue an owner might claim as a result of late completion.

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