Negligent Breach of Contract Blurs the Issue of Damages

December 5th, 2008

The law makes a distinction between contracts and torts, or civil wrongs. Contract actions are created to enforce the intentions of the parties to the agreement, while tort law is primarily designed to vindicate “social policy”.

There is also a difference in the measure of damages for breach of contract actions and actions in tort like a lawsuit seeking damages for negligence. Contract damages are generally limited to those within the contemplation of the parties when the contract was entered into or at least reasonably foreseeable by them at that time; consequential damages beyond the expectation of the parties are not recoverable.  By contrast, tort damages allow for compensation for all injuries flowing and as a direct result of the negligence or other tort.  Consequently tort damages are far broader and more extensive than contract damages.

Because tort damages exceed what is allowed under a breach of contract, we often see parties filing lawsuits seeking damages for a negligent breach of contract.  One case noted that “if every negligent breach of a contract gives rise to tort damages the limitation would be meaningless, as would the statutory distinction between tort and contract remedies.”

That does not mean that one can never recover tort damages that arise from a contractual relationship.  The courts have held that contractual obligation may create a legal duty and the breach of that duty may support an action in tort. Conduct amounting to a breach of contract becomes tortious only when it also violates a duty independent of the contract arising from principles of tort law.  An omission to perform a contract obligation is never a tort, unless that omission is also an omission of a legal duty.

Robert G. Klein, Esq. is a Los Angeles trademark attorney and a Los Angeles business lawyer who specializes in trademark infringement, copyright infringement, and unfair competition.  He feels it is important to hire a Los Angeles trademark lawyer and a Los Angeles business lawyer if one is involved in litigation in that locale.  Robert G. Klein is a prominent Los Angeles business attorney and is available for consultation on matters involving trademark infringement, copyright infringement, and business law matters.  He has successfully obtained many multi-million dollar jury verdicts. Many of Mr. Klein’s court decisions have been published as case authority and he has appeared before the United States Supreme Court for oral argument. Mr. Klein has also published “Consumer List: Trade Secret or Fair Game?”, which is an article published in the Los Angeles Lawyer Magazine. Los Angeles trademark infringement attorney Robert G. Klein can be reached at (213) 996-8508 or visit our web site at http://www.kleinlitigation.com

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