Damages

Question 1

Assume land was exploited and then it was supposed to be restored. The party obligated to restore breached the contract. When the cost of restoration far exceeds the difference between fair market value and the value the land would have had upon completion, what is the right measure of damages?

Answer 1

Courts are split.

If the land is fungible and the land is not intended for a specific purpose requiring completion, the difference in value might be awarded.

If the land is unique, has sentimental value, or is designed for a specialized purpose requiring completion, then performance will be required.

Question 2

Do contract damages have to be foreseeable to be recoverable?

Answer 2

Yes.

Question 3

Run through a damages analysis?

Answer 3

• what was the party’s expectation?
• Did the party incur consequential damages?
• If yes, were those damages foreseeable and ascertainable?