Consequential Damages

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Consequential 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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

consequential damages

n. damages claimed and/or awarded in a lawsuit which were caused as a direct foreseeable result of wrongdoing. (See: damages)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

CONSEQUENTIAL DAMAGES, torts. Those damages or those losses which arise not from the immediate act of the party, but in consequence of such act; as if a man throw a log into the public streets, and another fall upon it and become injured by the fall or if a man should erect a dam over his own ground, and by that means overflow his neighbor's, to his injury.
     2. The form of action to be instituted for consequential damages caused without force, is by action on the case. 3 East, 602; 1 Stran. 636; 5 T. R. 649; 5 Vin. Ab. 403; 1 Chit. Pl. 127 Kames on Eq. 71; 3 Bouv. Inst. n. 3484, et seq. Vide Immediate.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in classic literature ?
If A, is the penny sufficient, or may he claim consequential damages in the form of additional money to represent the possible profit which might have inured from the dog, and classifiable as earned incre- ment, that is to say, usufruct?"
These cases permit an insured to seek consequential damages that were within the contemplation of the parties at the time of contracting when an insurer acts in bad faith in disavowing coverage.
The Supreme Court of Georgia ruled in a partial condemnation that it was error to exclude evidence of consequential damages to the remainder of the landowners' property.
Oops--we goofed by failing to ascribe to the authors of the article on "Consequential Damages" their proper due.
Consequential damages is the term usually applied when an injury occurs to a property not actually taken or entered as the natural result of an act lawfully done by another.(26) It is sometimes used to denote damages recoverable by law to distinguish them from the compensation allowed for property actually taken, and arising from injury to other property not actually taken.
One of the more significant developments in New York insurance law this year came courtesy of two companion decisions by the state's highest court holding that policyholders may recoup not only policy proceeds when their insurer breaches the policy, but may also be eligible to recover consequential damages resulting from the breach where the insurer is alleged to have breached its duty of good faith and fair dealing.
With regard to the questions as to whether business losses and other consequential damages are covered under a CGL policy, there is no clear answer.
could assert a claim for consequential damages against Harleyville Insurance Company in a breach of commercial property insurance contract.