Question

Modern Railways Co. operates a cargo railroad service between New York and Boston. A train owned by Modern Railways derails due to a rare maintenance problem and collides with a delivery truck owned by CraftCo, shattering $100,000 worth of porcelain inside. If CraftCo sues Modern Railways Co. for negligence, CraftCo may be able to recover:

a. punitive damages.
b. special damages.
c. general damages.
d. singular damages.

Answer 1

Answer:

b. Special damages

Explanation:

Damages are remedies paid to claimants or plaintiffs as compensation for loss or injury caused by the defendant.

Special damages compensate the claimant for quantifiable monetary losses which can be either direct losses or consequential damages. For example the cost of replacement of damaged property is categorized as a direct loss and lost earnings relates to consequential damages.

The $100,000 worth of porcelain that was damaged is a direct loss which may be recovered by CraftCo under special damages.