Chapter 8: Judicial Remedies Flashcards
Remedies at Law
Developed in common law; You are after money
Remedies in Equity
Remedies at law inadequate (money doesn’t suffice); Court can fashion remedy; Clean Hands Doctrine
Clean Hands Doctrine
In order to get remedies in equity, you can’t have done anything wrong yourself
US v. Parlavecchio
Fight over custody of frozen sperm of mobster; Court ruled that in order for the court to use its equitable powers, a party must come into court with clean hands; Wife was not entitled to husband’s sperm
Compensatory
Money awarded to compensate a person for losses resulting from another’s wrongs; Restoring a person to status quo through money
Compensatory Expenses from Tort (car accident)
Out of pocket expenses (money you lost between yesterday and day of accident), Medical, Lost wages, Property Damage, Pain & Suffering
Contract Damages
Put injured person in the same position as if the contract had not been breaches
What happens if a person has a store order a computer and then the buyer changes their mind?
No contract damages because the seller still has the computer and can sell it to someone else
Is there ever a time when a seller can collect the full contract price?
Only after the goods are sold; Specially made goods
Seller’s Damages
Difference between contract price and resale price
What happens if the store sells the computer for the same price that the original customer was going to buy it for?
Person who breached the contract owes nothing
What happens if the store sells the computer for the less that the original customer was going to buy it for?
Person who breached the contract owes the difference in the price
Buyer’s Damages
Difference between the contract price and what you pay when going somewhere else; Cover v. Contract price; Market Value v. Contract price
Buyer’s Special Damages
When a buyer loses more than the difference in the contract price
What are the limitations to buyer’s special damages?
Limited to when damages are foreseeable, certain, and unavoidable; Dealer must know plans for product
Example of Buyer’s Special Damages
Seller fails to sell boat for charter fishing business; Can collect difference you pay for the boat from other seller in addition to the loss of profits from lost time not fishing
Punitive
Sum of money with purpose to punish person for outrageous conduct
Example of Punitive Damages
Jury awarding large sum of money from Phillip Morris is cigarette case because they hid health facts
How are punitive damages determined?
Net worth of defendant; Big companies such as McDonald’s pay much more in damages
Nominal
Technically, a wrong has been committed, but so what?; Award of $1
Example of Nominal Damages
Rear ending a junker car; USFL and NFL monopoly case
Tribial Damages
If you can prove something is a monopoly, multiply the amount awarded by 3
Liquidated
Damages awarded by agreement
Example of Liquidated
You rent an apartment but change your mind, your liquidated damages are your security deposit that held your lease
Mandatory Injunction
A court order directing a person to do something
Example of Mandatory Injunction
Court ordering for striking employees to go back to work (school employees)
Prohibitory Injunction
A court order directing a person to refrain from doing something
Example of Prohibitory Inunction
Restraining order
Restitution
Prevent unjust enrichment
Example of Restitution
Property B pumping oil from oil reserve that is mostly on Property A; Someone getting rich at your expense
How are restitution damages determined?
Determined by the defendant’s gain
Reformation
When written agreements fail to express real agreement of parties
Example of Reformation
Mistake in price of real estate agreement
Rescission
Asking the court to tear up the contract and return the parties to status quo
Example of Rescission: Stambovsky v. Ackley
Case of haunted house sold to unknowing people; Court allowed family to rescind contract
Declaratory Judgment
Determination of a person’s legal rights; Court reluctant to hear
Example of Declaratory Judgment
Proceeds of a life insurance policy left to “my life” instead of a specific person
Specific Performance
Forcing a party to go through with a contract; Goods must be unique; Can’t force someone to work
What happens if there is a special painting being used for an exhibit but the owner backs out on deal?
Museum can sue for specific performance because there is no adequate remedy at law; Plaintiff stated valid cause of action
What happens if Lady Gaga backs out of a performance?
Can’t force a person to work, so could only sue her for monetary damages
