What kind of damages are NOT included in claims against bonds?

In the context of claims against bonds, punitive damages and attorney fees are typically not included in the damages that can be claimed.

Bonds serve as a financial guarantee of performance or compliance with regulations and are primarily designed to cover actual damages suffered by a claimant due to the failure of a contractor or dealer to fulfill their obligations. Actual damages refer to the quantifiable losses directly resulting from the breach of contract or violation of law and are generally covered by the bond.

Punitive damages, on the other hand, are intended to punish the wrongdoer and deter others from similar behavior, rather than to compensate the victim for their losses. Because bonds are determined based on actual damages suffered, they do not typically account for this form of compensation.

Attorney fees often arise in legal claims as a separate cost incurred in the process of pursuing a case. However, such fees are also not generally covered by bonds as they are not considered a direct damage resulting from a breach. Instead, they are costs associated with legal representation, which are typically borne by the party bringing the claim.

This understanding emphasizes that bonds focus on making the claimant whole through actual damages, excluding claims for punitive damages and attorney fees.