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1 George Mason School of Law Contracts II Specific Performance F.H. Buckley [email protected]

1 George Mason School of Law Contracts II Specific Performance F.H. Buckley [email protected]

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Page 1: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

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George Mason School of Law

Contracts II

Specific Performance

F.H. Buckley

[email protected]

Page 2: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When might damages not suffice?

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Page 3: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When might damages not suffice?

Things of idiosyncratic value to a purchaser

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Page 4: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Things of idiosyncratic value to a purchaser Land: Lucy v. Zehmer

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“Tis the only thing worth fighting for, worth dying for”

Page 5: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Things of idiosyncratic value to a purchaser Heirlooms

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The Pusey Horn

Page 6: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Things of idiosyncratic value to a purchaser Beyond that? Sedmak 880

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1978 Corvette Pace Car

Page 7: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Things of idiosyncratic value to a purchaser Beyond that? Sedmak

Deposit paid, sale at MSRP with options After the changes, dealer to provide a

“contract”

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Page 8: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Things of idiosyncratic value to a purchaser Beyond that? Sedmak

Was there a contract? Statute of Frauds?

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Page 9: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Things of idiosyncratic value to a purchaser Beyond that? Sedmak

Specific Performance UCC § 2-716(1): “unique goods or in other proper

circumstances” Comment 1

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Page 10: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Why “proper circumstances” in Sedmak? Limited production and availability

problems Rise in price?

Why not monetary damages for this?

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Page 11: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico 107

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The Law School’s Gulfstream G-II“The Efficient Breach”

Page 12: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico

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Donald Kendall pours Nikita Krushschev a Pepsias Richard Nixon observes, 1959

Page 13: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico Was the plane unique? What about the price increase?

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Page 14: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico Was the plane unique? What about the price increase?

Could money damages make the Π whole with respect to the price increase?

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Page 15: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico Was the plane unique? What about the price increase?

Could money damages make the Π whole with respect to the price increase?

Would they make him whole under UCC §§ 2-712, 2-715?

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Page 16: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico Was the plane unique? What about the price increase?

Who bears the risk of a cover? Is it solely the buyer? Does the seller have an incentive to “cover”?

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Page 17: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico Was the plane unique? What about the price increase?

Who bears the risk of a cover? Is it solely the buyer? Does the seller have an incentive to “cover”? Do damages systematically undercompensate?

The American rule of costs

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Page 18: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Klein v. Pepsico Was the plane unique? What about the price increase?

Who bears the risk of a cover? Is it solely the buyer? Does the seller have an incentive to “cover”? Do damages systematically undercompensate? Does that explain why SP is sought?

Or denied?

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Page 19: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Triple A Baseball Club 883

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The Maine Phillies

Page 20: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Triple A Baseball Club

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Doug Jones, 303 saves in the majors

Page 21: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Monetary Specific Performance: Bander v. Grossman 884

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Aston Martin DB-5

Page 22: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Monetary Specific Performance: Bander v. Grossman Purchase price of $40,000 Price at breach of $60,000 Resale for $225,000 Price at trial of $80,000

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Page 23: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Monetary Specific Performance: Bander v. Grossman Purchase price of $40,000 Price at breach of $60,000 Resale for $225,000 Price at trial of $80,000 Damages of $20,000 awarded

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Page 24: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Marketing Contracts: Playgirl 886

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Centerfold Winner Sen. Scott Brown (R. MA)

Page 25: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Marketing Contracts: Playgirl Is it indeed the case that “Playgirl alone and

uniquely provides an advertising audience composed of young, malleable and affluent females”?

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Page 26: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Marketing Contracts: Playgirl Is it indeed the case that “Playgirl alone and

uniquely provides an advertising audience composed of young, malleable and affluent females”?

The Court: We think there are a lot of other magazines that cater to this market

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Page 27: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When might damages suffice?

When damages are wholly compensatory, might SP overcompensate?

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Page 28: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When might damages suffice?

When damages are wholly compensatory, SP might overcompensate Jacob and Youngs v. Kent: what result if SP

had been available?

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Page 29: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When might damages suffice?

When damages as wholly compensatory, SP might overcompensate

Costs of judicial supervision of performance

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Page 30: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When might damages suffice?

When damages as wholly compensatory, SP might overcompensate

Costs of judicial supervision of performance

Interference with liberty interests

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Page 31: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice?

Personal Services

http://www.youtube.com/watch?v=iXw9olWJ0Ak

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Anita Baker

Page 32: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

When do damages not suffice? Personal Services

No SP, no injunction Damages remedy against Warner

http://www.youtube.com/watch?v=iXw9olWJ0Ak

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Page 33: 1 George Mason School of Law Contracts II Specific Performance F.H. Buckley fbuckley@gmu.edu

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George Mason School of Law

Contracts II

Reliance Damages

F.H. Buckley

[email protected]