Compensatory Damages

Compensatory damages include direct damages and consequential damages.  An example of direct damages would be in a situation where the plaintiff has paid $10,000.00 for a truck, but the defendant refuses to deliver the truck.  The direct damages would be $10,000.00. Consequential damages would arise in a situation where the failure to deliver the truck harmed the business of the plaintiff (e.g., the plaintiff lost a delivery contract).  In this situation, the plaintiff could possibly get consequential damages for loss of the delivery contract.

Inside Compensatory Damages