1.) When something is of or has the characteristics of a situation wherein a person might be caused to use the word "damn".
2.) Exactly like 'damn' and can be used accordingly.
darB: I was double-charged for a tank of gas, and my bank denied my dispute.
derF: Damnage. I'd be pissed.
darB: Apparently the email I wrote when I got the letter was pretty good, though. I ended up getting a phone call from someone in executive escalations. They fixed it, but I'm still changing banks. You don't mess with my money.
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What you sue for when the use of profanity has caused harm and/or distress.
People were reluctant to allow swear-words to be used in motion pictures, but once Clark Gable famously used one in "Gone With The Wind", the damnages were done, and now movies are full of the foulest of language.