California First-Year Law Students' Exam (Baby Bar) — MCTortsMedium
A disgruntled former employee, seeking revenge against their previous employer, published a false statement on a popular online forum claiming the employer was secretly selling customer data to third parties. The statement was seen by thousands and caused several customers to cancel their contracts, resulting in significant financial loss for the employer. The employer sued the former employee for defamation. Which type of damages would the employer primarily seek for the loss of customer contracts?
- AGeneral damages
- BSpecial damages
- CNominal damages
- DPunitive damages
Show answer & explanationAnswer & explanation
Correct answer: B. Special damages
Special damages (also called 'pecuniary damages') are specific, quantifiable financial losses that result directly from the defamation, such as lost profits, lost contracts, or lost employment. The loss of customer contracts clearly falls into this category.
Why the other options are wrong
- A. General damages (also called 'presumed damages' or 'non-pecuniary damages') compensate for non-economic harm like reputational injury, humiliation, or emotional distress, which are often inferred rather than strictly proven.
- C. Nominal damages are a token sum awarded when a right has been violated but no actual loss is proven.
- D. Punitive damages are awarded to punish the defendant and deter similar conduct, not to compensate for direct losses.
Special Damages (Defamation)
Specific, quantifiable pecuniary losses suffered by the plaintiff as a direct result of the defamatory statement.
- Must be proven with specificity (e.g., lost contracts, lost employment).
- Required for slander that is not slander per se.
- Can be recovered in addition to general damages.
- Aims to compensate for economic harm.
Memory trick: General feelings, Special facts, Punish for bad acts, Nominal for principle.