Rescissory Damages Law and Legal Definition

Rescissory damages are damages measured by the fair value of the stock at the time of judgment. It is awarded to restore a plaintiff to the position occupied before the defendant’s wrongful acts. Recissory damages award includes either returning the property to the original owner or if that is not possible then to pay the monetary value of the property to the owner. Rescissory damages are most appropriate where it is shown that defendant’s fiduciaries unjustly enriched themselves by exercising their fiduciary authority deliberately to extract a personal financial benefit at the expense of the corporation's shareholders. Hence, rescissory damages may only be considered if they are susceptible of proof and a remedy appropriate to all the issues of fairness.