California Civil Jury Instructions (CACI)

3243. Consequential Damages

[Name of plaintiff] also claims additional amounts for [list claimed consequential damages].

To recover these damages, [name of plaintiff] must prove all of the following:

1. That [name of defendant]'s [describe violation of Song-Beverly Consumer Warranty Act] was a substantial factor in causing damages to [name of plaintiff];

2. That the damages resulted from [name of plaintiff]'s requirements and needs;

3. That [name of defendant] had reason to know of those requirements and needs at the time of the [sale/lease] to [name of plaintiff];

4. That [name of plaintiff] could not reasonably have prevented the damages; and

5. The amount of the damages.

Directions for Use

This instruction is intended for use where the plaintiff claims consequential damages pursuant to Commercial Code section 2715(2)(a) based on the plaintiff's foreseeable needs or requirements.

Sources and Authority

Civil Code section 1794(b) provides, in part: The measure of the buyer's damages in an action under this section shall include the rights of replacement or reimbursement as set forth in subdivision (d) of Section 1793.2, and the following:

(1) Where the buyer has rightfully rejected or justifiably revoked acceptance of the goods or has exercised any right to cancel the sale, Sections 2711, 2712, and 2713 of the Commercial Code shall apply.

(2) Where the buyer has accepted the goods, Sections 2714 and 2715 of the Commercial Code shall apply.

Commercial Code section 2712(2) provides, in part: "The buyer may recover from the seller as damages the difference between the cost of cover and the contract price together with any incidental or consequential damages as hereinafter defined (Section 2715), but less expenses saved in consequence of the seller's breach."

Commercial Code section 2715 provides, in part:

(2) Consequential damages resulting from the seller's breach include

(a) Any loss resulting from general or particular requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and

(b) Injury to person or property proximately resulting from any breach of warranty.

"In light of the relevant legislative history and express language in the Act, we conclude California Uniform Commercial Code section 2715's reference to losses must be construed and applied in the context of monetary losses actually incurred." (Bishop v. Hyundai Motor America (1996) 44 Cal.App.4th 750, 756 [52 Cal.Rptr.2d 134], emphasis in original.)

Secondary Sources

44 California Forms of Pleading and Practice, Ch. 502, Sales: Warranties, § 502.160 (Matthew Bender)

20 California Points and Authorities, Ch. 206, Sales (Matthew Bender)

5 Bancroft-Whitney's California Civil Practice: Business Litigation (1993) Consumer Warranties, § 53:31, pp. 38-39; id. (2001 supp.) at § 53:31, pp. 41-43

(New September 2003)