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Punitive Damages California courts do not recognize a right to punitive or exemplary damages for breach of contract, unless the breach occurs in connection with an intentional tort.
A breach of contract is not considered a crime or even a tort, and punitive damages are rarely awarded for failing to perform promised obligations.
Punitive damages are awarded in addition to compensatory damages. Punitive damages are rarely awarded for breach of contract.
The general remedy for breach of contract is a monetary sum amounting to the financial loss suffered as a result of the breach. The common law position is to place the innocent party in the same position as if the contract had been performed, such as accounting for a loss of sales.
Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against ?whole again,? as it is commonly phrased.
Four Types of Damages Available in a Breach of Contract Compensatory damages. Compensatory damages aim to restore the party who did NOT breach the contract back to the position they would have been in if the other party had held up their end of the deal as promised. Punitive damages. ... Nominal damages. ... Liquidated damages.
In a contract case, punitive damages are generally not awarded. This is because the law generally recognizes that parties should be allowed to breach a contract where it would be more economically efficient to do so.
The majority of American jurisdictions do not allow punitive dam- ages for breach of contract unless the breach constitutes an independ- ent tort. Increasingly, courts and commentators have relied on the the- ory of "efficient breach" to explain the rule against punitive damages in contracts.
These general compensatory damages include: Mental anguish. Disfigurement. Future medical expenses. Future lost wages. Long-term physical pain and suffering. Loss of consortium. Inconvenience. Loss of enjoyment of life.