Can Emotional Distress From A Breached Contract Be Compensated?

Compensation for emotional distress resulting from a breach of contract is generally limited and challenging to obtain. However, there are specific circumstances where such claims may be considered valid under contract law.

Circumstances for Compensation

Foreseeability:

Emotional distress damages must be a foreseeable result of the breach. If both parties understood that a breach could lead to significant emotional harm, this could support a claim.

Intentional or Negligent Infliction:

If the breach involves intentional or negligent actions that cause emotional distress, the injured party may seek compensation. This situation is more common in tort claims than in breach of contract claims.

Special Relationships:

In cases where a special relationship exists (e.g., therapist-client, family members), and the breach directly impacts that relationship, emotional distress damages may be more likely awarded.

Contracts with Personal or Emotional Value:

Contracts involving significant personal or emotional stakes—such as marriage, adoption, or family arrangements—might allow for claims for emotional distress due to the nature of the relationship.

Legal Principles

Damages Must Be Proven:

Claimants must provide clear evidence of emotional distress, such as medical records, testimonies, or expert evaluations. General claims without substantiation are typically insufficient.

Limits on Recovery:

Courts often limit the types of damages available in breach of contract cases, focusing primarily on economic damages unless the above conditions are met.

Separate Tort Claims:

Parties may pursue separate tort claims (e.g., negligence or intentional infliction of emotional distress) alongside breach of contract claims, providing a pathway to recover damages for emotional distress.

Example

If a wedding planner breaches a contract by failing to secure a venue, leading to significant emotional distress for the couple due to the impact on their wedding plans, the couple might claim emotional distress damages. They would need to demonstrate that the planner was aware the breach would likely cause significant emotional harm and provide evidence to support their claims.