damages

Question 1

what are the three types of damages

Answer 1

expectancy, reliance and restitution

Question 2

what are expectancy damages

Answer 2

looks foward, and puts party in postion the would have been in had the k not been breached, you get the higest amount for these damages

Question 3

what are relinace damages

Answer 3

looks backward
What they reasonably relied on
Putting them back to where they were
Does Not include lost wages

Question 4

what are restitution damages

Answer 4

deals with unjust enrichment on the breaching parties end

Question 5

Hawkins v Mcgee - the messed up hand case; D Dr persuaded the patient to let him perform the operation and the paten trusted him; the doctor claimed he had done it before, the surgery went left and the patient was left disabled, issue of what the appropriate damages should be

Answer 5

Rule- if one party breaches a contract, the non breaching party may recover damages based on the diff between the value of the k as it would have been if fully performed and the value of the non breaching party’s present condition, plus any incidental damages that were reasonably foreseeable

Question 6

Mcgee v US (the appeal from the case before with the hand) - after the doctor settles with the patient, he sues his insurance company to reimburse him

Answer 6

Rule- an insurance company’s policy of malpractice covering a physician does not extend to a ‘special contract’

Question 7

JO hooker v roberts cabinets - the defendant entered into a k with a company to do renovations, and d entered into a subcontract with p for them to remove the old cabinets and supply and install the new cabinets, but the pirates disputed over who was required to get rid of the old cabinets, and because they couldn’t agree the defendant said he considered the k null and void, p sued for damages as d had breached the sub k after performance had begun; issue of which law governs in a mixed ucc common law case and what damages should be allowed

Answer 7

Rule- The law for determining the appropriate award for mixed services and goods is based upon the primary subject of the contract and, when the primary subject is services, the appropriate award is that which would place the non-breaching party in a position that is as good as if there had been no breach

Question 8

KGM Harvesting v fresh network (the lettuce case) the parties entered into a k to buy and sell lettuce, but when the price of lettuce rose the seller refused to sell lettuce to the buyer, and the buyer refused to pay for the lettuce it already got and also had to go to a more expensive seller to het the lettuce it needed, and then they sued for breach of k, the tc court gave damages in the amount of the difference between the purchase price an k price, minus the value of the lettuce delivered under the k, and the other party appealed; issue over whether the damage award was excessive/ and whether a party that covers in good faith can recover the damages for the cost of the cover

Answer 8

rule= where a buyer covers by making in good faith and without unreasonable delay any reasonable purchase of goods in substitution for those due from the seller, that buyer may recover from the seller as damages the difference between the cost of cover and the contract price

Question 9

what is a cover

Answer 9

ie having to go to a different source to get the goods you originally contracted for after the og k failed or the party breached

Question 10

according to the ucc, what remeides are availbe to a buyer who’s goods were not delivered/or repudiation via the seller

Answer 10

the difference btwn the market price at the time when the buyer learned of the breach and the contract price with any incidental and consequential damages

Question 11

according to the ucc what are incdidental and conseqtal damages

Answer 11

incidnetal damages= expesnes reasonbky incurred in relation to the goods

consequental= results from the breach

Question 12

Hadley v Baxendale- the mill case; the P owned a mill and needed a new part so he contracted with the d to deliver the part by a certain day and that the mill was stopped until he got the part and that delivery should be asap, but the shipping by d was delayed and as a result the P lost days worth of profits, p sued for damages including lost profits; issue of whether damages can be awarded for one party’s breach includes damages reasonably foreseeable AND damages from special circumstances not communicated

Answer 12

an award of damages is appropriate for the damages that were reasonably foreseeable and special circumstances, provided that the circumstances were communicated to the breaching party

Question 13

Hector martinez and co v southern pacific transportation, the parties had an agrement for the d to ship a machine to p, but the machine was shipped late and was damaged in transit, p sued for loss of use,ie a special circumstance damage, but d alleged that they were not put on notice

Answer 13

Rule- a breaching party can be put on notice for special damages via the nature of the transaction or because of knowledge of being in a certain business

Rule- damages from the loss of a machine’s use are a reasonably foreseeable result of delayed transport

Question 14

Morrow v first national bank of hot springs - the case with the bank vault; p had a coin collection and wanted to put them in a safety deposit box at the bank, no boxes were available, but then the bank moved buildings and P reserved boxes and paid 25 for each box and they would be available in 30-60 days. The employees promised to tell p when the boxes were ready, but before he was notified he was robbed. He later found out that the boxes had been ready but wasn’t notified, and he sued the bank for breach of k

Answer 14

Rule: The tacit-agreement test says that one agrees to all terms of a contract that can reasonably be assumed to be part of the agreement, but one cannot be liable for special circumstances of which one did not have actual notice.

Question 15

Chicago coliseum club v dempsey - the boxing case; the club entered into an agreement with the defendant boxer, they sent a letter to the boxer asking him to submit some paper work and the boxer responded that he was training for a different fight, the club brought suit seeking to enjoin him from fighting the other person, and also sought damages for loss of profits, expenses incurred before the agreement, expenses incurred in trying to stop the boxer from fighting the other person, and expenses incurred after the contract was signed but before it was breached; issue of whether there was enough certainty for the damages

Answer 15

Rule- in an action for breach of k, a party can recover only on damages which naturally flow from and are a result of the breach (ie were certain to happen as a result of the breach)

Question 16

Winston cigarette machine co v wells whitehead – were not given fact pattern but lots of good rules

Answer 16

A party who has broken his contract cant escape liability because of the difficulty there may be in finding a perfect measure of damages

Sometimes it will hurt one party in doing justice to another, but the court will choose to help the one party every time

Question 17

Anglia television ltd v reed - the parties contracted together for reed to star in a movie, and a lot of expenses were spent in preparation of the flim, then the actor reputed; the tv company tried to find a replacement but couldn’t find one; they sue for damages via claim of loss expenses issue of whether a non breaching party can recover for expenses before and after the breach

Answer 17

Rule: A nonbreaching party may recover expenditures in lieu of lost profits, including those expenditures incurred both before and after the agreement was made.

Question 18

Security stove and manufacturing v american railway – the plaintiff contracted with the d to ship its stove to a convention, when he got to the convention it was discovered that the most important part was not shipped, eve though d had full knowledge of the importance of the circumstances, and he had to close his exhibit at the convention, and he sued for damages in reliance; issue of whether those damages in reliance were properly awarded.

Answer 18

they apply an exception to the general rule that where there is a breach of k the suffering party can only recover that which he would have had the K not been broken

Exception to the rule: the injured party may recover expenses incurred in relying upon the contract, although such expenses would have been incurred had the k not been breached

Question 19

Rockingham county v luten bridge - (avoidability of harm)the one with the bridge; the parties contracted to build a bridge but d repurdated on the agreement, despite this, P continued to build the bridge and then sued for damages ; issue of whether, after receiving notice of a party’s breach of a K for services, the non breaching party may continue to perform the contract to complete and recover the full contract price

Answer 19

Rule :When a non-breaching party in a contract for services receives notice of another party’s breach, the non-breaching party must treat the contract as broken when notice is received, cease performance, and sue for any losses sustained from the breach as well as profits that would have been realized upon performance.

Question 20

Shirley mclaine – d offered P a role in one movie, they breached that k but offered her another role in a different movie , p declined and sued for breach of the first K: issue of whether Ps refusal was reasonable and wheter a non breaching parties damages be mitigated if D offered an equal k

Answer 20

the employeer must show that the other employment was comparable or substantially similar, to that of which the employee has been deprived; the employee’s rejection of or failure to seek other available employment of a differnt or inferior kind may not be resorted to in order to mitigate damages