Remedies Flashcards
Damages must be considered first followed by ________.
Restitution
Compensatory damages aim to give each party __________.
The benefit of her bargain
Recovery for compensatory damages is the amount necessary to ___________.
Put the party in the place she would have been in had the contract been performed
The measure of compensatory damages is __________ - __________.
Market price - contract price
What are the requirements of compensatory damages?
- Contract breach caused damages
- Damages were foreseeable at formation
- Damages must be established with certainty
- P had duty to mitigate
Mitigation expenses can be recovered even if __________.
Those particular expenses are not connected to a successful mitigation attempt
What are consequential damages?
Related damages foreseeable at contract formation
What are the elements of consequential damages?
- Naturally arose from breach AND
- Reasonable foreseeable
P is only entitled to nominal damages when __________.
There is a breach but no actual proof of damages
Punitive damages are not available for breach of contract unless __________.
P characterizes D’s conduct as a tort as well as a breach of contract
What is a liquidated damages clause?
Damages for breach are specified directly in the contract
What are the two requirements for a valid liquidated damages clause?
- Actual damages difficult to estimate AND
- Figure is a reasonable forecast of fair compensation
Liquidated damages are invalid if interpreted as _______.
A penalty
If a liquidated damages clause is interpreted as a penalty, then:
- It will be invalidated AND
- Actual damages will be awarded
A liquidated damages clause that gives an option of either _____ or _____ is invalid.
Actual damages
Liquidated damages
Under contract law, quasi-contract is used to prevent _________.
Unjust enrichment of D
What must P and D do before quasi-contract arises?
- P has rendered performance AND
- D breaches
When a contract is unenforceable, P can recover _________.
The value of the benefit conferred to D
P may recover the value of the benefit conferred even if its value is higher than _________.
The rate stipulated in the contract
Under quasi-contract may recover specific property conferred to D only if:
- Property is unique OR
- D was insolvent
If there is a material breach, the nonbreaching party can recover ____________.
The value of the benefit conferred to D even if the value is greater than the contract rule
Unjust enrichment cannot exceed the contract price when:
- All the work giving rise to the claim has been completed AND
- The only remaining obligation is the payment of the contract price
If there is a material breach, under quasi-contract, P may recover specific property conferred to D only if:
- Property is unique OR
- D insolvent
Under modern law, may a materially breaching party recover?
Only the value of the benefit conferred to the nonbreaching party; reduces by damages
What is required for compensatory damages in tort law?
- Causation
- Certainty
- Unavoidable
What is the but-for test for causation for compensatory damages in tort law?
But for D’s breach of duty, P wouldn’t have been injured
Damages must be proven with reasonable _________.
Certainty
Between future and past damages, which has a higher certainty threshold?
Past damages
Future damages must be shown to be ________.
More likely to happen than not
Between special damages and general damages, which require certainty?
Special damages
What is the duty to mitigate?
P has an affirmative duty to take reasonable steps to mitigate damages
Can you split up compensatory damages for torts?
No; must be a lump sum
Special future damages must be discounted to _________.
Present value
How does inflation play into calculating compensatory damages?
It doesn’t
What are nominal damages?
Very small damages awarded to show that the loss/harm suffered by P was technical rather than actual
Why are punitive damages awarded?
To punish D in an effort to reform/deter D and similar persons from pursuing similar action in the future
What are the requirements for punitive damages?
- Attached to compensatory, nominal, or restitutionary damages AND
- Wanton, willful, or malicious conduct
What are the constitutional limitations on punitive damages?
Must be relatively proportionate to actual damages
Few awards exceeding ________________ between punitive and compensatory damages will satisfy due process.
Single-digit ratio
Few awards exceeding single-digit ratio between __________ and _________ damages will satisfy due process.
Punitive
Compensatory
Restitutionary damages are designed to __________.
Prevent unjust enrichment
Restitutionary damages are calculated by ____________.
Looking at the value of the benefit conferred to D
What is replevin?
Restitutionary remedy that allows P to recover chattel wrongfully taken
When replevin occurs, ________ repossesses P’s personal property.
Sheriff
What are the elements of replevin?
- P has a right to possession AND
- D is wrongfully withholding P’s chattel
When is replevin available?
Available before trial
P must _______ for replevin to be permitted before trial
Post bond
D can defeat P’s right to replevin before trial by ___________.
Posting a redelivery bond
What damages are available under replevin?
- Recovery of property
- Compensatory damages
- Restitutionary damages
A subsequent __________ cuts off the right to replevin.
Bona fide purchaser
What is ejectment?
Legal remedy that allows P to recover possession of real property
What are the elements of ejectment?
- P has right to possession AND
- D is in wrongful withholding and possession
What damages are available under ejectment?
- Recovery of possession
- Compensatory damages
- Restitutionary damages
Equitable remedies are addressed after _____ and _____.
Legal remedies
Legal restitutionary remedies
Equitable remedies are available only if _______ are insufficient
Legal remedies
Equitable restitutionary remedies are available when:
- Legal remedies are inadequate AND
- D has wrongfully acquired title to property
What is a constructive trust?
Passive, temporary arrangement in which trustee (D)’s sole duty is to transfer title/possession to P
The court imposes a constructive trust on ______.
P’s property
In a constructive trust, _______ serves as trustee
D
When is a constructive trust used?
- When property appreciates after wrongful taking
- D’s property can be solely traced back to P’s property
What is an equitable lien?
Lien imposed on P’s property by the court that subjects the property to an immediate court-ordered sale of property
Who receives the proceeds of a sale stemming from an equitable lien?
P
When will an equitable lien be used?
- Property depreciates
- D’s property improved with P’s property
- Property not solely traceable to P
If a sale from equitable lien provides proceeds that are less than FMV of the property when it was taken by D, then _________.
P will be entitled to a deficiency judgment for the remainder
If D sells wrongfully-acquired property under an equitable restitutionary remedy, P may __________.
Trace the proceeds of the sale
Where there is an equitable restitutionary remedy, P will prevail over _______.
Other unsecured creditors
In regards to equitable restitutionary remedies, P is an unsecured creditor for the purpose of any deficiency judgment if _____________.
The sale proceeds are less than the properpty’s FMV
In the sale of an equitable restitutionary remedy, a __________ will prevail over P.
Bona fide purchaser
Who is a bona fide purchaser in connection to an equitable restitutionary remedy?
An innocent party who purchases property w/o notice of any other party’s claim to the property’s title
What is an injunction?
A pure equitable remedy that a party may use to stop another party from acting (or force another party to act in a certain manner)
When is a permanent injunction awarded?
After a full trial on the merits
What makes an injunction different from a permanent injunction?
It’s not provisional
When deciding whether to award a permanent injunction, a court will not balance hardships unless ________.
The injunction pertains to a nuisance/trespass on the land
What are the required elements for a permanent injunction?
- Inadequate legal remedy
- Property right/protectable personal interest
- Feasibility of enforcement
- Balance of hardship
When will monetary damages be inadequate, thus warranting a permanent injunction?
- Too speculative
- D is insolvent
- Irreparable injury OR
- Multiplicity of litigation
What three remedies must be inadequate in order for legal remedy to be inadequate, thus justifying the use of a permanent injunction?
- Monetary damages
- Replevin
- Ejectment
What is the modern rule regarding the “property right or protectable personal interest requirement” for permanent injunction?
Court will award injunctions to enforce any protectable personal interests
An injunction is either mandatory or ________.
Prohibitory
What is a mandatory injunction?
Requires a party to act
What is a prohibitory injunction?
Prevents a party from doing certain acts
Prohibitory injunctions are easier for the court to enforce because _______.
D will be required only to stop acting in a certain manner as opposed to being required to do something in an affirmative matter
The court will use its powers of _______ to enforce injunction.
Contempt
Enforcement of mandatory injunctions is problematic because of:
- Difficulty of supervising D AND
- Difficulty of ensuring D’s compliance
Injunctions requiring D to act with great ______, ______, or ________ are unenforceable.
Taste
Skill
Judgment
Injunctions for series of acts ___________ will be denied.
Over a period of time
For whom is an injunction for an out-of-state action enforceable?
D who is resident of a state
Under the minority view, courts will not balance hardships unless:
Injunction pertains to:
1. Nuisance
2. Trespass to land
Courts will deny an injunction if the hardships to ______ substantially outweigh those to _______.
D
P
When hardships to D substantially outweigh those to P, the court will award P _______.
Monetary damages
When considering a permanent injunction, courts will typically balance the hardship to P and D unless _________.
D’s conduct was intentional
In addition to hardship to P and D, courts will also consider hardship to ______ before granting an injunction.
The public
If P is denied an injunction on the balancing of hardship, the court will award ______.
Monetary damages
What is laches?
Unreasonable delay by P, causing undue prejudice to D
The laches period may be shorter than _______.
The statute of limitations
Under laches, ______ will be denied, but P may be awarded _______.
Equitable relief
Monetary damages
Under the laches defense, equitable relief will be denied, but P may be awarded monetary damages unless _______.
The statute of limitations has tolled
In regards to laches, the statute of limitations begins to run when _________.
P has knowledge of injury
What is the unclean hands defense?
P isn’t entitled to obtain equitable remedy because P acted….
1. Unethically OR
2. In bad faith
…with respect to the subject of P’s action against D
What are the maxims of equity?
One who comes into equity must come with clean hands
P’s “unclean hands” must be related to ________ to be a valid defense.
the subject of the suit
How is the freedom of speech a defense to injunctions?
Prevents injunctions against:
1. Defamation
2. False light
3. Private life
How is freedom of association a defense against injunctions?
Injunction won’t be granted if it interferes with the internal management of an association