McTeer will join the show as a series regular on the fifth and final season. She will play Kate Franklin, a former colleague of Patty Hewes, played by Tony winner Glenn Close (Sunset Boulevard). When her character joins the series, she will work for Hewes' rival, Ellen Parsons (Rose Byrne).
McTeer won a Tony Award in 1997 for her performance in Henrik Ibsen's A Doll's House and was nominated for her performance in Mary Stuart. She has also been seen on Broadway in God of Carnage.
"Damages" will return for its final season on DirecTV in summer 2012.