Jurisdiction(s):
United Kingdom

Key definition

Compensatory damages definition

What does Compensatory damages mean? Compensatory damages are a monetary award to make good loss caused by breach of contract or a civil wrong, putting the claimant (or pursuer) in the position they would have been in absent the breach or wrong, so far as money can do it. In contract, the principal measures are: (a) expectation (performance) interest (often called loss of bargain), giving the value of the promised performance; and (b) reliance interest, reimbursing reasonably incurred expenditure wasted in reliance on the contract. In tort (delict in Scotland), damages aim to restore the pre‑wrong position, covering pecuniary loss and, where...

Compensatory damages in private competition claims under English law: principles, quantification, passing-on, umbrella pricing, EU Damages Directive, and leading cases

Published by a LexisNexis Competition expert

Practice notes

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Most private competition claims in England proceed on a tortious footing, commonly pleading Breach of statutory duty, and the discussion below centres on tort-based claims. Nonetheless, it should be acknowledged at the outset that English law does, in certain circumstances, allow Damages linked to anti-competitive behaviour to be recovered on a non-tortious basis. For example, a contract may stipulate payment of a liquidated amount if a counterparty is found to have committed a relevant infringement of competition law. Indeed, some companies now incorporate such terms within their standard supplier agreements. It is also, of course, possible to seek remedies other than Compensatory damages. Brief mention is made below of Exemplary damages, which are awarded not to make the claimant whole but to punish the defendant. Likewise, restitutionary damages aim to remove part or all of the benefits obtained by the tortfeasor through the wrong, rather than to recompense the claimant for loss. These additional or alternative remedies are not addressed further below (see further, Damages in tort and negligence claims).

A recap: assessment of compensatory damages in

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Richard Pike

Fieldfisher

Richard is a Partner at Fieldfisher, specialising in antitrust litigation. He has acted for defendants but is usually instructed by claimants, both in standalone and follow-on actions relating to cartels and other forms of competition infringement in the UK and EU. He acts for individual clients and for large groups (whether through the collective action regime or otherwise). As a litigator, he has many years of experience in the Competition Appeal Tribunal as well as in the High Court. His notable cases include the successful defence of Shell in OFT infringement proceedings brought in relation to tobacco retailing as well as a series of cases for Hutchison. His competition damages experience includes acting for defendants in claims based on the paraffin wax and refrigeration compressors cartels. He has also had some involvement with class actions in the United States, where he studied and was...

Web page updated on 21/05/2026

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