Introduction/Compensatory Damages Flashcards
What is a remedy?
What a court can do for a litigant.
What are usually compensatory remedies?
Damages.
What do punitive remedies do?
Punish and Deter
What are usually classified as reparative remedies?
Injunctions
What are preventative remedies?
Injunctions to stop someone or something from doing something.
What is a declaratory remedy?
A declaration by the court of some kind.
What are ancillary remedies?
Remedies to enforce. Usually how a damage or an injunction is enforced, can also be attorneys’ fees.
What is a substitution remedy ?
When money will substitute performance.
What is a specific remedy?
A remedy that typically occurs before the harm (injunction probably).
What are legal remedies?
Damages.
What are equitable remedies?
Injunctions.
When can someone get an injunction?
When damages are inadequate.
What is the goal of compensatory damages?
The goal is to reset the plaintiff to her rightful position, or as close as possible.
What is the rule of remedies for property damages?
“The Lesser of—” RULE
- Fair Market value of the property
OR
- Replacement costs.
What is true of deprecation?
Things have less depreciation if they are not new property.
How to know which “Lesser of—” to use?
Use whatever is less money, that is what will be awarded as a remedy.
Is pain and suffering on top of property damages normal?
It is not normal.
Why use the “Lesser of—”?
There is a concern with over-compensating plaintiffs.
The “Lesser of—” rule is much ___________ to institute with older properties.
HARDER
Does someone being put in their rightful position end up with more or less money than what was damaged?
They shouldn’t end up with more or less, it should be an amount equal to the damage.
What is the rule on remedies for special property?
“The Lesser of—” RULE
- Fair Market value (FMV) of the property
OR
- Repair costs
What are some types of special property?
Hospitals
Churches
Things that do not have a lot of value (people not looking to purchase)
What is someone’s Rightful Position?
The position a person would have been in if there was no breach or If the contract was never made.
What is expectancy interest?
(Present in Contract Claims)
Position plaintiff would have occupied if the defendant had performed (meaning there was no breach).
What is reliance interest?
(Present in Contract Claims)
Position plaintiff would have occupied if the defendant never made a deal.
This would be an out of pocket loss or damage.
When to use expectancy interest or reliance interest in TORT LAW?
Fraudulent misrepresentation: use the benefit of the bargain (expectancy).
Negligent misrepresentation : use the out of pocket loss or damage (reliance).
What are consequential damages?
Damages which flow from the consequence of the breach.
Determining consequential damages is ______________.
Speculative.
Are consequential damages recoverable?
They are recoverable (awarded) for things that would be in the parties’ reasonable contemplation at the time the contract was validated.
Consequential damages simplified:
Parties must know the consequence of the breach.
What are General Damages?
Damages which arise naturally from the contract.
Examples of General Damages: (the interests)
Expectation interest
Reliance interest
What are special damages?
Damages that are the probable result of the breach
Consequential Damages.
Which are more important/real between general or special damages?
General are legit, special are less legit and the importance of distinguishing these damages are decreased.
$50 in primary contract damage is [general/specific]?
General
Lost sales or profits from 5 days being closed are [general/specific]?
Specific (example of consequential damages).
If the breach is failure to pay money, then there are ___ _____________ ___________.
no consequential damages
Exception to no consequential damages for breach based of failure to pay money:
If an insurance company breaches in this way, consequential damages are added on.
Where do main (general) damages come from?
The wrong, or the breach.