General damages

How BC law treats it

In BC courts, damages are usually divided into general and special damages. Special damages are specific past losses that can be calculated, such as repair invoices or lost revenue to the date of trial, and must be specifically pleaded and proved. General damages cover losses that are presumed or cannot be precisely calculated, and are assessed by the judge. In contract, damages aim to put the innocent party in the position it would have been in had the contract been performed. Recoverable loss is limited by remoteness: losses arising naturally from the breach, or that both parties reasonably contemplated when contracting, can be recovered (Hadley v Baxendale (1854), 9 Exch 341). Mental distress damages in contract are available only where peace of mind was an object of the contract (Fidler v Sun Life Assurance Co of Canada, 2006 SCC 30). A corporation cannot recover for pain and suffering, although it can recover general damages for injury to its reputation in a defamation claim. The plaintiff must take reasonable steps to mitigate its loss, and cannot recover losses it could reasonably have avoided. In personal injury cases, non-pecuniary general damages are subject to the ceiling set by the Supreme Court of Canada's 1978 trilogy, including Andrews v Grand & Toy Alberta Ltd, [1978] 2 SCR 229. Since May 1, 2021, BC's no-fault vehicle insurance model has largely removed the right to sue for vehicle injuries. Workplace injuries are generally not a source of damages claims against employers. Under section 127 of the Workers Compensation Act, RSBC 2019, c 1, a covered worker has no right of action against their employer or other covered employers and workers for injuries arising out of and in the course of employment; compensation is paid by WorkSafeBC instead.

What it means for your business

In commercial disputes, the general and special damages distinction shapes how a claim is pleaded and proved. Businesses claiming lost profits, damage to goodwill or loss of opportunity need evidence of what would have happened without the breach. Defendants can challenge remoteness and mitigation to reduce awards significantly. Understanding these limits early helps a business decide whether a claim is worth pursuing and how to value settlement offers. Example: A Delta food distributor sues a refrigeration contractor after a faulty install spoils a shipment. It claims special damages for the spoiled inventory and general damages for lost future orders from a customer who left, which the court assesses on the evidence.

Risks and common mistakes

Failing to plead and document special damages, such as invoices and calculations, before trial. Claiming pain and suffering or mental distress on behalf of a corporation. Ignoring the duty to mitigate, which can reduce or eliminate a damages award. Claiming losses that were not reasonably foreseeable when the contract was made. Assuming an injured employee can sue the employer instead of claiming through WorkSafeBC.