Claims for liquidated and unliquidated damages

Liquidated damages are damages that are fixed or may be calculated according to a known formula, such as amounts owing under a loan agreement to a lender.  Contracts such as building contracts also often contain clauses by which the parties agree to a method of calculating damages in the event of a breach, such as how to calculate damages on a per day basis if completion of a project is delayed.

Unliquidated damages are damages that are sought by a party (calculated without a known formula) and need to be proven in court if not accepted by the other party. Often in unliquidated damages will arise in cases involving allegations of a negligent act/omission or misleading and deceptive conduct.  Unliquidated damages can be different depending on the circumstances of each case, such as whether a property’s value increased or decreased as a result of delay.

Particularly in the case of unliquidated damages, it is important to consider all aspects of a dispute to be able to calculate the maximum amount of damages claimable.  Conversely, a defendant will often require advice in relation to disputing heads of damages or quantum of damages claimed by a plaintiff.

It may also be necessary at times to obtain the services of an expert witness that would be able to provide the court with expert evidence as to how damages should be calculated, such as damages caused by delay in putting a property to market or exercise of a builder’s technical expertise.

Rowe Bristol Lawyers is experienced at providing legal advice and services in relation to the calculation of both liquidated and unliquidated damages in a variety of disputes, including:

  • general contractual disputes;
  • sale of business and valuation disputes;
  • building and construction contracts disputes;
  • disputes involving misleading and deceptive conduct;
  • disputes involving inappropriate or negligent financial advice;
  • disputes involving breaches of the (Corporations Act 2001); and
  • employment contracts disputes.

If you require legal advice in relation to liquidated and unliquidated damages, please contact us to arrange a meeting so that we may consider your specific circumstances.

The above information is provided as general information only and should not be relied upon as legal advice.  The accuracy of this information may have changed from the date when it was published.