Difference between revisions of "Do You Have a Small Claim? (20:III)"

Although the Small Claims Court has the jurisdiction to award $25,000 (''BC Reg'' 179/2005), the awards in most cases are significantly less.    There must be a principled basis for an award of damages and it is helpful to separate a claim into the following types of damages. Ensuring that there is a legal basis for a claim is a critical step as there are penalties for proceeding through a trial in Small Claims Court on a claim that has no reasonable basis for success (''Rule'' 20(5)).  

General damages are those that are not easy to quantify and for which a judge must assess the amount of money that, in the circumstances, will compensate for the loss. A common example of general damages is “pain and suffering”. The purpose of general damages is to compensate and not  to punish; a party should not expect to profit or realise a windfall through an award of general damages. A person planning to claim general damages should provide evidence of the loss and research the case law to determine how the courts have assessed damages in cases with similar  losses and circumstances.   Resources include CanLII.org, the courthouse library, and a practising lawyer.

Special damages are those that are not presumed as a direct consequence of the act (See ''Stroms Bruks Aktie Bolag v Hutchison'', [1905] AC 515, at p 525). Special Damages are generally quantifiable out-of-pocket expenses. For example, if a person has been put to expense and has receipts showing the amounts spent, these expenses would be classified as special damages. In a personal injury action, this could be medical bills, or in an action involving faulty equipment, repair bills could be classified as special damages. Each and every expense must be strictly proved with documents or other satisfactory evidence.  

Nominal damages are those where a wrong has been committed but there has been no, or insignificant, damages suffered as a result of the wrong.  Certain torts, such as trespass, allow claims for nominal damages however there is little reward and much to be lost.   A person who has suffered no damages yet still brings a claim may not recover the costs for bringing a claim that wastes the court’s and the parties’   time and money. Note that cost awards are limited in small claims cases (''Rule'' 20(2)).  

“A liquidated demand in the nature of a debt, i.e., a specific sum of money due and payable under or by virtue of a contract. Its amount must either be already ascertained or capable of being ascertained as a mere matter of arithmetic. If the ascertainment of a sum of money, even though it be specified or named as a definite figure, requires investigation, beyond mere calculation, then the sum is not a ‘ debt or liquidated demand,’ but constitutes ‘ damages.’”

Some contracts provide for a genuine pre-estimate of damages in the event of a breach and allow the non-breaching party to claim for that estimate without having to prove the amount they have actually lost. This amount can be recovered as a debt. If the amount of liquidated damages is not a genuine pre-estimate of damages or is manifestly inappropriate in the circumstances, a court may decline to award them.  

Statutory damages are those that arise from a breach by the defendant of an obligation found in a statute.   The statute and relevant case law  should be examined carefully to determine what damages may be claimed and the principles for assessing damages.  

Punitive damages, also called “exemplary damages”, are reserved for conduct that is so abhorrent that the court must impose an additional  penalty to punish the wrongdoer and discourage others from engaging in similar conduct.   Punitive damages are '''rarely''' awarded. Punitive damages are not compensatory and the amount, if any, is in the complete discretion of the judge.  

A claimant who seeks punitive damages must ask for punitive damages in the Notice of Claim. Punitive damages '''cannot''' be awarded in addition to the $25,000 monetary limit.

Aggravated damages provide additional compensation where  the wrongdoer’s  actions  have caused mental distress, injury to dignity or injury to pride9.  Awards of aggravated damages are  rare  and  depend  heavily  on  the  actions  of  the  wrongdoer and  the  circumstances.  Aggravated damages have previously been awarded in cases of aggravated assault and sexual assault10. The claimant must provide actual evidence of mental distress that results from the wrongdoing of the defendant. A claimant who seeks aggravated damages must ask for aggravated damages in the Notice of Claim.  Aggravated damages '''cannot''' be awarded in addition to the $25,000 monetary limit.