Benefit-of-the-bargain vs. out-of-pocket – Calculating damages in fraudulent misrepresentation cases

Description

Abstract: In fraudulent misrepresentation cases, courts generally use either the benefit-of-the-bargain or out-of-pocket measure of damages, but the two measures can lead to dramatically different results. This brief article discusses the differences between them and illustrates these distinctions with a recent case, Lewis v. Citizens Agency of Madelia Inc.