Computing Value Of Plaintiff's Expectation Damage

Front 1

Turner v. Brown

What is the G/R and proper measure of damages available to a vendor as against a breaching vendee in a real estate transaction?

Back 1

The vendor is entitled to the difference between the K price and the fair market value of the property at the time of breach.

Front 2

What else may the vendor recover?

Back 2

Special damages, if any, that arise out of the breach of K in order to compensate the vendor for any loss or injury actually sustained by reason of the vendee's breach.

Front 3

What is a stipulation of these special damages?

Back 3

They must be w/in the reasonable contemplation of both parties at the time the contract was made.

Front 4

What damages under the G/R is the P entitled to if at the time of the breach, the actual value of the P's residence equals or exceeds the K price?

Back 4

Only nominal damages

Front 5

How are damages for the loss of the bargain calculated if the seller has breached?

Back 5

The difference between the K price and the market value of the property at the time of breach....but the purchaser must prove that the property's market value was MORE than the K price at the time of breach

Front 6

When the K price and market value are approx equal, what requirements and limitations are the "consequential" or "incidental" damages subject to?

Back 6

1) the "rule" of Hadley v. Baxendale - damages are recoverable only if they were reasonably foreseeable at the time of the K
2) the prohibition on speculative damages - damages must be proven with reasonable certainty
3) the duty to mitigate damages - damages may not be recovered to the extent that they could have been avoided or minimized with reasonable efforts.

Front 7

Is the general formula set forth in REST sect. 347 the only way courts measure expectation damages?

Back 7

NO. They often used alternative measures.

Front 8

In proof of market value, is showing that similar homes were "listed" at a certain price sufficient evidence?

Back 8

No, b/c the "listing" price often overstates value.

Front 9

What do courts allow in the requirement of proof of market value?

Back 9

1) expert testimony - appraiser
2) owner of property
3) resale price of property at the time of the breach, provided the resale takes place w/in a reasonable period of time in an arm's length transaction.

Front 10

What is the "English Rule" in breach by the seller?

Back 10

this restricts the P purchaser to restitution of any payment made by her on the purchase price, unless she can demonstrate that the D seller has breached in "bad faith."

Front 11

What is the "American Rule" in breach by the seller?

Back 11

this generally awarded expectation damages for any unexcused failure to convey, regardless of the good faith or bad faith of the seller.

Front 12

Which rule is more in line with traditional G/R of K law? Why?

Back 12

the "American Rule" b/c unless the cause of nonperformance falls within one of the recognized categories of legal excuse, an expectation-based remedy will normally be available.

Front 13

What is the potentially "attractive feature" of the "English Rule"?

Back 13

adjusting the remedy for breach in light of the willfulness of the breaching party

Front 14

What is the UCC damages rule?

Back 14

Damages for breach of a K to buy or sell goods may also be measured by the differenc btwn the market price and the K price of the goods.

Front 15

What does UCC SEC 2-708(1) determine seller's damages to be?

Back 15

the measure of the seller's damages for nonaccpetance or repudiation by buyer is "the difference between the market price at the time and place for tender and the unpaid K price together w/any incidental damages provided in this article (sec2-710), but less expenses saved in consequence of the buyer's breach.

Front 16

What does UCC SEC 2-713 determine buyer's damages to be?

Back 16

the measure of the buyer's damages for nondelivery or repudiation by the seller is the "difference between the market price at the time when
the buyer learned of the breach and the K price together with any incidental and consequential damages provided in this Article(sec2-715), but less expenses saved in consequence of the seller's breach.

Front 17

What does UCC SEC 2-706 provide for?

Back 17

"seller's resale" - allows the seller who complies with its provisions to recover from a breaching buyer damages measured by the difference btwn the K price and the seller's resale price.

Front 18

What does UCC SEC 2-712(1) provide for?

Back 18

"buyer's cover" - allows the buyer to "cover" her loss by purchasing substitute goods and to measure her damages by the difference between the cost of the goods and the K price.

Front 19

When does "postjudgment interest" begin to accrue under local law?

Back 19

from its date of entry, perhaps from the date of the verdict with respect to the amount of that judgment

Front 20

When will "prejudgment interest" be awarded?

Back 20

in agreements that call for the payment of a sum of money on or before a fixed date or on the happening of a specific event (e.g. a promissory note) commonly provide that this sum will bear interest at some state rate if timely payment is not made. Such a provision will be given effect in the judgment unless it violates some "usury" statute.

Front 21

Can a P gain "prejudgment interest" in the absence of specific K language?

Back 21

sometimes, but usually only awarded in cases where at the time of the breach the P's claim was for a "liquidated" sum.

Front 22

When does a claim become "liquidated"?

Back 22

when both the amount due and the date on which such amount is due are fixed and certain or when the same become definitely ascertainable by mathematical calculation.