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- Chapter 11 Common Business Litigation Damages Models
Chapter 11-9 Other Pecuniary and Intangible Damages
Jurisdiction | United States |
11-9 Other Pecuniary and Intangible Damages
11-9:1 Loss of Credit or Injury to Credit Reputation
"[A]ctual damages for loss of credit or injury to credit reputation in an action for breach of contract may be recovered when there is evidence that loss of credit was a natural, probable, and foreseeable consequence of the defendant's breach."203 Loss of credit or injury to credit reputation can also be a compensable injury in tort cases, such as for defamation204 and fraud.205
11-9:2 Reputation Damages to a Corporation
A corporation may recover general damages for loss of reputation, which constitute noneconomic rather than economic damages.206 "[t]hese non-pecuniary damages do not require certainty of actual monetized loss. Instead, they are measured by an amount that 'a reasonable person could possibly estimate as fair compensation.'"207
11-9:3 Reputation and Mental Anguish Damages to an Individual
these noneconomic damages "cannot be determined by mathematical precision; by their nature, they can be determined only by the exercise of sound judgment."208 Compensation for mental anguish can only be assessed for evidence of "substantial disruption in . . . daily routine" or "a high degree of mental pain and distress."209 Mental anguish is recoverable for fraud,210 but is rarely compensable in a breach of contract case or a tortious interference with contract case.211 Damages for mental anguish resulting from the breach of a "special relationship" between the plaintiff and defendant can be compensable when the mental anguish is the necessary and foreseeable result of the defendant's conduct.212
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Notes:
[203] Mead v. Johnson Grp., Inc., 615 S.W.2d 685, 688 (tex. 1981).
[204] Blanche v. First Nationwide Mortg. Corp., 74 S.W.3d 444, 456 (tex. App.—Dallas 2002, no pet.).
[205] Duval Cty. Ranch Co. v. Wooldridge, 674 S.W.2d 332, 336 (tex. App.—Austin 1984, no writ).
[206] Waste Mgmt. of Tex., Inc. v. Tex. Disposal Sys. Landfill, Inc., 434 S.W.3d 142, 149-51 (tex. 2014).
[207] Waste Mgmt. of Tex., Inc. v. Tex. Disposal Sys. Landfill, Inc., 434 S.W.3d 142, 153 (tex. 2014).
[208] Bentley v. Bunton, 94 S.W.3d 561, 605 (tex. 2002).
[209] Parkway Co. v. Woodruff, 901 S.W.2d 434, 444 (tex. 1995).
[210] Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299, 304 (tex. 2006).
[211] Soukup v. Sedgwick Claims Mgmt. Servs., Inc., No. 01-11-00871-CV, 2012 WL 3134223, at *6-7 (tex. App.—Houston [1st Dist.] Aug. 2, 2012, pet. dism'd).
[212] City of Tyler v. Likes, 962 S.W.2d...
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- Chapter 11 Common Business Litigation Damages Models
- Chapter 11-1 Choosing the Right Damage Model
- Chapter 11-2 Benefit-of-the-Bargain Damages
- Chapter 11-3 Out-of-Pocket Damages
- Chapter 11-4 Restitution (Misappropriation)-Damages
- Chapter 11-5 Contractual Damages and Remedies
- Chapter 11-6 Lost Profit
- Chapter 11-7 Loss of Value of a Business
- Chapter 11-8 Property Valuation and Damages
- Chapter 11-9 Other Pecuniary and Intangible Damages
- Chapter 11-10 Statutory Damages Specific to the Cause of Action
- Chapter 11-11 Equitable Remedies for Recovery of Monetary Funds
- Chapter 11-12 Exemplary Damages
- Chapter 11-13 Interest, Costs and Attorney's fees
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