We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Contingent Damages: A Comprehensive Guide to Their Legal Meaning
Definition & Meaning
Contingent damages refer to the monetary compensation awarded in a legal case when certain conditions are met. Specifically, these damages arise when a court postpones the consideration of a demurrer"a legal objection to a complaint"while allowing other parts of the complaint to proceed to trial. If the court finds in favor of the plaintiff on those other counts, the damages awarded are termed contingent damages, as they depend on the outcome of the unresolved issues.
Table of content
Legal Use & context
Contingent damages are primarily used in civil litigation, particularly in cases involving torts or breaches of contract. They are relevant in situations where a plaintiff seeks compensation for harm or loss, but some aspects of their claim are still under dispute. Legal templates and forms related to contingent damages can often be found through resources like US Legal Forms, which provide users with the necessary tools to manage their claims effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(hypothetical example) A plaintiff sues a defendant for breach of contract and also claims damages for emotional distress. The defendant files a demurrer against the emotional distress claim, which the court postpones. The court proceeds with the breach of contract claim and awards the plaintiff $10,000 in damages. These damages are considered contingent damages because they were awarded while the emotional distress claim remains unresolved.
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Contingent damages may be awarded in cases involving emotional distress claims.
New York
Contingent damages are often limited to economic losses unless specified otherwise.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Actual Damages
Compensation for proven losses.
Contingent damages depend on unresolved claims.
Punitive Damages
Compensation awarded to punish the defendant.
Contingent damages are not punitive in nature.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation involving contingent damages, consider the following steps:
Review the details of your case and identify any pending demurrers.
Consult with a legal professional to understand your rights and options.
Explore US Legal Forms for templates that may help you file necessary documents or claims.
If the matter is complex, seek professional legal assistance to navigate the process effectively.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.