Danny Cerrone, Jr. and Andrew Giel | Clark Hill When entering into a construction contract, it is important to understand and account for the differences between direct damages and consequential damages, as these differences can determine what damages may be recoverable. Direct damages, sometimes referred to as general or proximate damages, follow from the type… Continue reading Direct vs. Consequential: Why Precise Contract Language Matters
Tag: Direct Damages
Consequential vs. Direct Damages
John Mark Goodman | BuildSmart Many construction contracts include a provision that prohibits the parties from recovering “consequential” damages in the event of a breach. Sometimes parties will negotiate and agree to a waiver of consequential damages that identifies and describes what damages are considered consequential damages. For example, the parties may agree that prohibited consequential… Continue reading Consequential vs. Direct Damages
Building Design Disputes – New Analysis of Direct v. Consequential Damages in Florida
Stephanie Eaton | Spilman Thomas & Battle Are design professionals involved in your Florida project? If so, then you need to be aware of this newly decided case. The U.S. District Court for the Middle District of Florida, in Orlando, issued an Order on July 11, 2025, confirming that in Florida, remediation costs for defective… Continue reading Building Design Disputes – New Analysis of Direct v. Consequential Damages in Florida
Toolbox Talk Series: Direct Versus Consequential Damages–Is There a Clear Demarcation?
Brendan J. Witry | The Dispute Resolver In Hadley v Baxendale, 9 Ex. 341 [1854], of 1L Contracts lore, the Court of Exchequer set out the dichotomy of direct damages and consequential (or indirect) damages. In the 170 years that have followed, lawyers on both sides of the Atlantic have sought to parse out what are… Continue reading Toolbox Talk Series: Direct Versus Consequential Damages–Is There a Clear Demarcation?
Direct vs. Consequential Damages – What is the Difference, Really?
Stan Martin | Commonsense Construction Law LLC | November 3, 2016 Many people, even while negotiating the terms of a contract “mutual waiver of consequential damages” clause, fail to appreciate the distinction between direct and consequential damages. A federal district court judge in Pennsylvania has penned a thoughtful decision on this issue, worth noting. The… Continue reading Direct vs. Consequential Damages – What is the Difference, Really?