Understanding Causes of Action for Damages in Maryland

What are Damages?

“Damages…are designed to compensate the plaintiff for the injury suffered.” (See Billing v. Moulsdale, No. 3287, at *10 n.4 (Md. Ct. Spec. App. Aug. 6, 2020); Owens-Illinois, Inc. v. Zenobia (1992) 325 Md. 420, 451.)

Damages include compensatory or actual damages, putative damages, and nominal damages.

“Actual damages are defined as [a]n amount awarded to a complainant to compensate for a proven injury or loss; damages that repay actual losses.” (See BLACK'S LAW DICTIONARY 418 (8th ed. 2004); AGV Sports Group, Inc. v. Protus IP Solutions, Inc. (2010) 417 Md. 386, 399 n.14.)

“Compensatory damages are in contrast to nominal damages, which are defined as a trivial sum of money awarded to a litigant who has established a cause of action but has not established that he is entitled to compensatory damages, Restatement (Second) of Torts § 907, and punitive damages, which are defined as damages, other than compensatory or nominal damages, awarded against a person to punish him for his outrageous conduct and to deter him and others like him from similar conduct in the future.” (See E. Shore Title Co. v. Ochse (2017) 453 Md. 303, 334 n.23; Restatement (Second) of Torts § 908.)

Compensatory Damages

“The Restatement (Second) of Torts defines ‘compensatory damages’ as the damages awarded to a person as compensation, indemnity or restitution for harm sustained by him.” (See E. Shore Title Co. v. Ochse (2017) 453 Md. 303, 334; Restatement (Second) of Torts § 903 (Am. Law Inst. 1979).)

“Compensatory damages can be divided into ‘economic’ and ‘noneconomic damages.’ The Restatement notes that [c]ompensatory damages that will not be awarded without proof of pecuniary loss [, i.e. economic damages,] include compensation for (a) harm to property, (b) harm to earning capacity, and (c) the creation of liabilities.” (See id. at § 906.)

“In contrast, [c]ompensatory damages that may be awarded without proof of pecuniary loss [, i.e. noneconomic damages,] include compensation (a) for bodily harm, and (b) for emotional distress.” (See id. at § 905.)

Awarding Punitive Damages

“It is a well settled proposition in Maryland law that a cause of action does not exist for punitive damages alone.” (See Shabazz v. Bob Evans (2005) 163 Md. App. 602, 639-40 (Md. Ct. Spec. App.; Philip Morris Inc. v. Angeletti (2000) 358 Md. 689, 773, 752 A.2d 200; Shell Oil Co. v. Parker (1972) 265 Md. 631, 644, 291 A.2d 64.)

“In Schloss v. Silverman, 172 Md. 632, 642, 192 A. 343 (1937), the Court observed, [c]ompensation and punishment are different things, and it is generally held that punitive or exemplary damages cannot be recovered without proof of actual loss.” (See Shabazz v. Bob Evans (2005) 163 Md. App. 602, 639-40.)

“Hence, a necessary condition for the recovery of punitive damages is an underlying award of compensatory damages.” (See id; Philip Morris Incorporated v. Angeletti (2000) 358 Md. 689, 773; Caldor v. Bowden (1993) 330 Md. 632, 662; Rite Aid Corp. v. Lake Shore Investors (1984) 298 Md. 611, 626, 471 A.2d 735; Carter v. Aramark Sports and Entertainment Services, Inc. (2003) 153 Md.App. 210, 253, 835 A.2d 262.)

“More specifically, there must be a compensatory damages award foundation for each count of a complaint that provides a basis for punitive damages.” (See id; Thorne v. Contee (1989) 80 Md.App. 481, 502, 565 A.2d 102.)

Nominal Damages

“In a proper case, a nominal damages award will support a punitive damages award.” (See Shabazz v. Bob Evans (2005) 163 Md. App. 602, 639-40; Heinze v. Murphy (1942) 180 Md. 423, 429, 24 A.2d 917.)

“Nominal compensatory damages are damages awarded when a compensable injury has been proven but it is impossible to calculate the actual loss that has been suffered. In that situation, the plaintiff has sustained actual harm.” (See id.)

“By contrast, an award of nominal damages that is not compensatory, i.e., is made only upon a finding of a technical invasion of the plaintiff's rights, when in fact, no compensable injury was proved, will not support an award of punitive damages.” (See id.)

Attorney Fees as Damages

“Consistent with the ‘American rule,’ Maryland's approach to attorney's fees is that such fees are ordinarily not recoverable by the prevailing party in an action for compensatory damages.” (See Monarc Construction, Inc. v. Aris Corp. (2009) 188 Md. App. 377, 392-93; Hess Construction Co. v. Board of Education of Prince George's County (1996) 341 Md. 155, 160, 669 A.2d 1352; Long v. Burson (2008) 182 Md.App. 1, 25-26, 957 A.2d 173; Chang v. Brethren Mutual Insurance Co. (2006) 168 Md. App. 534, 551-52, 897 A.2d 854.)

“There are exceptions to that general rule, allowing recovery of such fees if, inter alia, they are authorized by statute or agreed-upon by the parties to a contract.” (See id.)

“However, where no exception applies, then each party to a case is responsible for the fees of its own attorneys, regardless of the outcome.” (See id; Friolo v. Frankel (2008) 403 Md. 443, 456, 942 A.2d 1242.)

Current as of April 01, 2024 | Updated by Trellis Law Content Team

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information and is subject to change without notice.