{"id":1093,"date":"2021-10-25T03:50:08","date_gmt":"2021-10-25T03:50:08","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1093"},"modified":"2022-05-05T15:37:00","modified_gmt":"2022-05-05T15:37:00","slug":"caci-1923-damages-out-of-pocket-rule","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-1923-damages-out-of-pocket-rule\/","title":{"rendered":"CACI 1923 Damages\u2014\u201cOut of Pocket\u201d Rule"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-ku81r6bq-5d5ef659c1bc1ebb1262f008df1991c5\">\n#top .av-special-heading.av-ku81r6bq-5d5ef659c1bc1ebb1262f008df1991c5{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-ku81r6bq-5d5ef659c1bc1ebb1262f008df1991c5 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-ku81r6bq-5d5ef659c1bc1ebb1262f008df1991c5 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-ku81r6bq-5d5ef659c1bc1ebb1262f008df1991c5 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 1923 Damages\u2014<span class='special_amp'>\u201c<\/span>Out of Pocket<span class='special_amp'>\u201d<\/span> Rule<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" 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action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-ku81sars-7d293d3be4bd9f54ac8a3e4752120637\">\n#top .av_textblock_section.av-ku81sars-7d293d3be4bd9f54ac8a3e4752120637 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-ku81sars-7d293d3be4bd9f54ac8a3e4752120637 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">1923\u00a0Damages\u2014\u201cOut of Pocket\u201d Rule<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">If you decide that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] has proved [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] claim against [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">], you also must decide how much money will reasonably compensate [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] for the harm. This compensation is called \u201cdamages.\u201d<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The amount of damages must include an award for all harm that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was a substantial factor in causing, even if the particular harm could not have been anticipated.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove the amount of [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] damages. However, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] does not have to prove the exact amount of damages that will provide reasonable compensation for the harm. You must not speculate or guess in awarding damages.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">To decide the amount of damages you must determine the [fair market] value of what [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] gave and subtract from that amount the [fair market] value of what [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] received.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[\u201cFair market value\u201d is the highest price that a willing buyer would have paid on the date of the transaction to a willing seller, assuming:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That there is no pressure on either one to buy or sell; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That the buyer and seller know all the uses and purposes for which the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert item<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is reasonably capable of being used.]<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] may also recover amounts that [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] reasonably spent in reliance on [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s [false representation\/failure to disclose\/false promise] if those amounts would not otherwise have been spent. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New September 2003; Revised December 2009 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>For discussion of damages if there is both a breach of fiduciary duty and intentional misrepresentation, see the Directions for Use to\u00a0CACI No. 1924,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Damages\u2014\u201cBenefit of the Bargain\u201d Rule. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Damages for Fraud.\u00a0Civil Code section 1709.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Measure of Damages in Tort.\u00a0Civil Code section 3333.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Damages for Fraud in Sale of Property.\u00a0Civil Code section 3343.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">This instruction should be modified in cases involving promissory fraud: \u201cIn cases of promissory fraud, the damages are measured by market value as of the date the promise was breached because that is the date when the damage occurred.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Glendale Fed. Sav. &amp; Loan Assn. v. Marina View Heights Dev. Co.<\/span>\u00a0(1977) 66 Cal.App.3d 101, 145\u2013146 [135 Cal.Rptr. 802].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThere are two measures of damages for fraud: out of pocket and benefit of the bargain. The \u2018out-of-pocket\u2019 measure of damages \u2018is directed to restoring the plaintiff to the financial position enjoyed by him prior to the fraudulent transaction, and thus awards the difference in actual value at the time of the transaction between what the plaintiff gave and what he received. The \u201cbenefit-of-the-bargain\u201d measure, on the other hand, is concerned with satisfying the expectancy interest of the defrauded plaintiff by putting him in the position he would have enjoyed if the false representation relied upon had been true; it awards the difference in value between what the plaintiff actually received and what he was fraudulently led to believe he would receive.\u2019 \u2018In California, a defrauded party is ordinarily limited to recovering his \u201cout-of-pocket\u201d loss \u2026\u2009.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Alliance Mortgage Co. v. Rothwell<\/span>\u00a0(1995) 10 Cal.4th 1226, 1240 [44 Cal.Rptr.2d 352, 900 P.2d 601], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cOf the two measures the \u2018out-of-pocket\u2019 rule has been termed more consistent with the logic and purpose of the tort form of action (i.e., compensation for loss sustained rather than satisfaction of contractual expectations) while the \u2018benefit-of-the-bargain\u2019 rule has been observed to be a more effective deterrent (in that it contemplates an award even when the property received has a value equal to what was given for it).\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Stout v. Turney<\/span>\u00a0(1978) 22 Cal.3d 718, 725 [150 Cal.Rptr. 637, 586 P.2d 1228].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn fraud cases involving the \u2018purchase, sale or exchange of property,\u2019 the Legislature has expressly provided that the \u2018out-of-pocket\u2019 rather than the \u2018benefit-of-the-bargain\u2019 measure of damages should apply.\u00a0Civil Code section 3343\u00a0provides the exclusive measure of damages for fraud in such cases.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fragale v. Faulkner<\/span>\u00a0(2003) 110 Cal.App.4th 229, 236 [1 Cal.Rptr.3d 616].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cCivil Code section 3343\u00a0does not apply, however, \u2018when a victim is defrauded by its fiduciaries.\u2019 Instead, in the case of fraud by a fiduciary, \u2018the \u201cbroader\u201d measure of damages provided by sections 1709 and 3333 applies.\u2019 \u2026 [\u00b6] In the case of a negligent misrepresentation by a fiduciary, \u2018a plaintiff is only entitled to its actual or \u201cout-of-pocket\u201d losses suffered because of [the] fiduciary\u2019s negligent misrepresentation under section 3333.\u2019 [\u00b6] The Supreme Court has not decided whether \u2018the measure of damages under section 3333 might be greater for a fiduciary\u2019s\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">intentional<\/span>\u00a0misrepresentation \u2026\u2009.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fragale, supra,<\/span>\u00a0110 Cal.App.4th at pp. 236\u2013237, original italics, internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWe have previously held that a plaintiff is only entitled to its actual or \u2018out-of-pocket\u2019 losses suffered because of fiduciary\u2019s negligent misrepresentation under section 3333. While the measure of damages under section 3333 might be greater for a fiduciary\u2019s intentional misrepresentation, we need not address that issue here.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Alliance Mortgage Co., supra,<\/span>\u00a010 Cal.4th at pp. 1249\u20131250.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTo recover damages for fraud, a plaintiff must have sustained damages proximately caused by the misrepresentation. A damage award for fraud will be reversed where the injury is not related to the misrepresentation.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Las Palmas Associates v. Las Palmas Center Associates<\/span>\u00a0(1991) 235 Cal.App.3d 1220, 1252 [1 Cal.Rptr.2d 301], internal citations omitted.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>6 Witkin, Summary of California Law (11th ed. 2017) Torts, \u00a7\u00a7\u20091893\u20131900<\/div>\n<div>3 Levy et al.,\u00a0California Torts, Ch. 40,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit and Other Business Torts<\/span>, \u00a7\u200940.23\u00a0(Matthew Bender)<\/div>\n<div>23\u00a0California Forms of Pleading and Practice, Ch. 269,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit<\/span>\u00a0\u00a7\u2009269.27\u00a0(Matthew Bender)<\/div>\n<div>10\u00a0California Points and Authorities, Ch. 105,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit<\/span>\u00a0\u00a7\u2009105.252\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-73nk05-c38e62b44818789d266a8d0ecbd0be92 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5varfp-32ad459b941ae08d8ab33e4e841cc1c4\">\n#top .av_textblock_section.av-5varfp-32ad459b941ae08d8ab33e4e841cc1c4 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5varfp-32ad459b941ae08d8ab33e4e841cc1c4 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1093","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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