White v. Benkowski

Supreme Court of Wisconsin · 1967 · Contracts

Contractsbreach of contractpunitive damagesexemplary damagescompensatory damagesnominal damagesactual injuryinconvenience damages

Facts

The evidence showed that the defendants shut off the plaintiffs' water supply during several short periods. Mrs. White testified that one shutoff caused an odor in the bathroom and that on two other occasions she had to take her children to a neighbor's home to bathe them. The trial court instructed the jury that compensatory damages in contract include pecuniary loss and inconvenience, but also stated that plaintiffs had proved no pecuniary damages and could recover nominal damages if they proved no actual damages. The jury awarded $10 in actual damages, but the trial court reduced that amount to $1.

Issue

Was the trial court correct in reducing the jury's compensatory-damages award from $10 to $1 where there was evidence of inconvenience from the breach? Are punitive damages recoverable in an action for breach of contract, including a wilful breach, when no tort was pleaded or proved?

Rule

In a breach-of-contract action, compensatory damages include pecuniary loss and inconvenience suffered as a natural result of the breach, and damages need not be proved with mathematical precision so long as the trier of fact sets a reasonable amount based on credible evidence of actual injury. Punitive damages are not recoverable for breach of contract, even if the breach is wilful, unless the plaintiff pleads and proves a tort arising from a duty independent of mere nonperformance of the contract.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Madison, Nora Feldman contracted with Lakeview Utility Services, a private supplier, to provide water to her small duplex for three summer months while a municipal line was under repair. The supplier repeatedly stopped service for short periods, and Nora testified that she had to carry buckets from her sister's house two blocks away and postpone bathing her children, but she could not calculate any dollar loss.

If Nora proves only those facts in a breach-of-contract action, which is the most accurate measure of recovery?

Explanation. Compensatory damages for breach of contract include not only pecuniary loss but also inconvenience suffered as a natural result of the breach. The plaintiff need not prove damages with mathematical precision; the factfinder may set a reasonable amount based on credible evidence of actual injury. Punitive damages are not available for mere breach of contract.