Remedies Flashcards
What are compensatory damages?
Compensate the plaintiff (P) for legally recognized harm.
Purpose: Restore P to the position they would have been in absent the defendant’s (D’s) wrongful act.
Purpose: Restore P to the position they would have been in absent the defendant’s (D’s) wrongful act.
What are the two types of compensatory damages?
- Tort Damages (Retrospective): Puts P in the same position as before the tort.
- Contract Damages (Prospective): Puts P in the same position as if D had performed.
What damages are available in a contract action?
- Expectation damages (benefit of the bargain).
- Consequential & incidental damages (foreseeable damages).
- Mitigation required to avoid excessive recovery.
What is reliance damages?
P’s expenditures in reliance on a contract.
Limited to contract price to prevent windfall.
Limited to contract price to prevent windfall.
What is restitutionary damages?
Prevents unjust enrichment by D.
Measured by the benefit conferred on D.
Measured by the benefit conferred on D.
What are nominal damages?
Symbolic damages when P proves liability but no significant harm.
What are punitive damages?
Punish D for serious misconduct.
Usually tied to compensatory damages (rarely exceeds 10x compensatory).
Usually tied to compensatory damages (rarely exceeds 10x compensatory).
What are liquidated damages?
Pre-agreed damages in a contract.
Must be reasonable at contract formation.
Cannot be a penalty.
Must be reasonable at contract formation and cannot be a penalty.
What are incidental damages?
Costs incurred due to breach (e.g., finding replacement goods/services).
E.g., finding replacement goods/services.
What are the limitations on recovering damages?
- Causation (But-for D’s actions, P would not suffer injury).
- Foreseeability (Only damages foreseeable at breach are recoverable).
- Certainty (Damages must be reasonably certain).
- Mitigation (P must take reasonable steps to avoid further harm).
Can P recover for emotional distress in a contract case?
No, unless the breach caused foreseeable emotional distress.
What is the collateral source rule?
P’s recovery is NOT reduced by third-party benefits.
What is a Temporary Restraining Order (TRO)?
Short-term order to maintain the status quo.
Lasts up to 14 days (CA: 15 days if no notice to D).
Can be granted ex parte (without notice).
Lasts up to 14 days (CA: 15 days if no notice to D) and can be granted ex parte (without notice).
What is a Preliminary Injunction?
Issued before/during trial to prevent harm.
Requires notice to D.
Lasts until final judgment.
Requires notice to D and lasts until final judgment.
What must P show to obtain a TRO or preliminary injunction?
- Irreparable harm absent the injunction.
- P’s hardship > D’s hardship.
- Likelihood of success on the merits.
- Feasibility of enforcement.
What must P show for a permanent injunction?
Same elements as a preliminary injunction, but final.
What are the defenses to an injunction?
- Laches: Unreasonable delay prejudicing D.
- Unclean Hands: P engaged in misconduct related to the claim.
When is specific performance available?
- Valid contract exists.
- P has met or excused conditions precedent.
- Legal remedies (money damages) are inadequate.
- Court can enforce the order feasibly.
- Relief is equitable.
When is specific performance typically granted?
Unique goods (e.g., real estate).
Rarely for personal service contracts (due to involuntary servitude concerns).
Rarely for personal service contracts (due to involuntary servitude concerns).
What is rescission?
Cancels a contract due to fraud, mistake, duress, or undue influence.
What must P do before seeking rescission?
Give notice to D and return benefits received.
What is reformation?
Corrects a written contract to reflect actual intent.
Allowed for mutual mistake or unilateral mistake + fraud.
Allowed for mutual mistake or unilateral mistake + fraud.
When is restitution available?
When D has been unjustly enriched at P’s expense.
What remedies are available in restitution?
- Money judgment (based on D’s unjust enrichment).
- Constructive trust (when D holds title to property).
- Equitable lien (security interest in D’s property).
- Subrogation (P stands in creditor’s place).
