White v. Benkowski

Nature of the Case

This was a breach of contract action for damages.

Facts

The Whites (P) entered into a 10-year contract with Benkowski (D) to use Benkowski’s well for water. White paid $400 for a new pump and an additional tank and promised to pay $3 a month and half the cost of any future repairs or maintenance. The contract was in writing. Within two years, the situation had become hostile and Benkowski shut the water supply off on several occasions, ostensibly to clear the pipes and to remind the plaintiffs that they were using too much water.

The plaintiffs brought suit and the jury awarded them $10 in exemplary damages and $2,000 in punitive damages. The court reduced the exemplary damages to $1 since no pecuniary loss was shown and disallowed the punitive damages. The Whites appealed.

Issues

  1. May exemplary damages include compensation for inconvenience?
  2. May punitive damages be awarded for a contract breach?

Holding and Rule of Law

  1. Yes. Exemplary damages may include compensation for inconvenience.
  2. No. Punitive damages may not be awarded for a mere breach of contract.

The award of $10 is nominal and clearly sustained by the evidence presented at trial. Punitive damages are not allowed in contract actions and it is immaterial whether the breach was intentional or malicious. No penalties may be imposed for the mere breach of a contract. A breach of contractual duty may lie in tort, but no tort was pleaded here.

Disposition

Reversed and affirmed in part.


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