When a business dispute turns into a legal battle, one of the first questions that business owners and executives often ask is: what can we actually recover if we win? Commercial litigation cases in New York can involve a variety of claims, from breach of contract to fraud to business torts. The type of damages you may be entitled to recover depends on the facts of your case, the specific claims involved, and the evidence you can present in court. Continue reading and reach out to a dedicated business litigation lawyer from 59Law.com to learn more. Here are some of the questions you may have:
What types of compensatory damages are available in commercial litigation?
In most commercial litigation cases, compensatory damages are designed to make the injured party “whole” again. That means the goal is to place you in the position you would have been in had the wrongdoing not occurred. These damages typically fall into two broad categories: actual damages and consequential damages.
Actual damages refer to direct losses, such as unpaid invoices or the value of goods or services that were not delivered as promised.
Consequential damages, on the other hand, are losses that occur as a result of the breach but are not directly tied to the contract itself.
For example, if a supplier fails to deliver essential materials on time and your company loses a major client because of the delay, those lost profits could be considered consequential damages. However, in order to recover consequential damages in New York, they must have been reasonably foreseeable at the time the contract was formed.
Can I recover punitive damages in a commercial litigation case?
Punitive damages are not commonly awarded in commercial litigation, but they are possible in certain cases involving egregious misconduct. These damages are not meant to compensate the injured party. Instead, they serve to punish the wrongdoer and deter similar conduct in the future. In New York, courts generally require clear and convincing evidence of fraud, malice, or other morally reprehensible behavior before awarding punitive damages. Simply breaching a contract, even if the breach caused significant harm, is usually not enough. If your case involves intentional fraud or another form of willful wrongdoing, your attorney can advise you on whether seeking punitive damages is appropriate.
What about attorneys’ fees and costs—can I recover those?
Business owners are often surprised to learn that, in most commercial litigation cases, each party is responsible for its own legal fees. There are exceptions, of course. If your contract specifically provides for the recovery of attorneys’ fees, or if a particular statute applies to your case, you may be able to seek reimbursement for some or all of your legal expenses. Additionally, courts may sometimes award costs, such as filing fees or expenses related to expert witnesses, to the prevailing party. This is one reason why it is so important to have contracts carefully drafted at the outset of a business relationship. A well-crafted contract can help protect your rights and provide clearer remedies in the event of a dispute.
If your business is involved in a dispute that could lead to litigation, speaking with an experienced Rockland County commercial litigation attorney can help you understand your options and build a strategy aimed at achieving the best possible outcome. Contact 59law.com for your initial consultation today.