During the Battle of Spotsylvania Court House on May 12, 1864, Daniel led his brigade in a fierce counterattack on the "Mule Shoe" (also known as the "Bloody Angle"), trying to recapture the important position from elements of the Army of the Potomac, which had captured it at dawn. He was struck in the abdomen by a Minié ball, inflicting a mortal wound. He died the next day in a field hospital. His body was taken to Halifax and buried in the old colonial cemetery. Unknown to Daniel, Robert E. Lee had recommended his promotion to major general just prior to his death.