Card Set Information
1. Money damages
2. Restitution (money, replevin, ejectment)
1. Restitution (a. constructive trust, b. equitable lien)
What is a Constructive trust?
court imposed obligation on defendant to convey specific property to the plaintiff
what is a equitable lien?
court-imposed security interest in specific property owned by the defendant
"forced sale" + deficiency judgment, if the FMV has dropped
what is an injunction?
negative or mandatory order by the court
Tort Damages available?
1. actual damages
2. Nominal damages (small amount awarded when actual damages cannot be proven)
3. Punitive damages
Actual damages in tort?
1. Compensatory damages seek to put P back where he was before the tort. Actual damages in tort look to the past
2. General damages
: compensate for foreseeable losses, e.g., P&S. these are presumed
3. Special damages
: compensate for losses not necessarily foreseeable, e.g., lost wages. must be specially pleaded
Punitive damages purpose & requirements?
1. Punitive damages purpose is to punish and deter. They do not compensate for actual injury.
2. Must establish actual/nominal damages.
3. Must be some proportionality between actual/nominal damages and punitive damages. Rule of thumb < 10x
4. Wealthy defendants pay more than poor defendants.
What is restitution in tort?
Benefit unjustly retained by the defendant. Does not need to be any injury to the plaintiff.
: look for benefit to the defendant
: recovery of specific PERSONAL property
: recovery of specific REAL property
Elements for replevin?
1. P has right to possession
2. D is wrongfully withholding the property
3. Sheriff always repossess, no self-help.
*P may recover property before trial by posting a bond, but D may defeat it with a redelivery bond.
*always couple with compensatory damages for lost use or benefit to D (restitution) during the time of wrongful detention
Can P recover his property by replevin from a BFP after a theft?
Yes. Equity cuts off once a BFP has legal title.
But, if the goods were stolen, then legal title was never available to transfer.
Thus, P can recovery goods from a BFP who purchased stolen goods, even unknowingly.
Elements for Ejectment?
1. P has right to possession
2. D is wrongfully withholding the property
3. Sheriff ejects (no self-help)
*Only available against a D who has *possession* (holdover tenant or AP)
Always couple ejectment with damages for lost use (compensatory) or benefit to D (restitutionary) during the time of wrongful withholding.
No punitive damages for holdover tenants.
What equitable Remedies available in tort?
1. Constructive trust
2. Equitable lien
Constructive trust in Tort, requirements?
a) D has title to property
b) acquisition of title was because of D's wrongdoing
c) D's retention of property would be unjust enrichment
d) inadequate legal remedy
*P gets benefit of any increased value
*cannot be used when D has improved property on P's land
Equitable lien in tort, requirements?
a) D has title
b) wrongful acquisition of property can be traced to D
c) D's retention would result in unjust enrichment
*enforced only up to the value of P's claim (appreciation in value not recoverable)
*can be imposed on property that was merely improved with the P's property, or the proceeds thereof
*remedy is cut off by a transfer of title to a BFP
If P's property is not used to acquire title of the wrongful property, which remedy can be used?
Only equitable lien is available, not constructive trust
order to D to refrain from doing something
order to D to do something
TRO in tort:
Order sought at the first stage in P's request for injunctive relief.
1) may be issued after a notice and a hearing
2) or, ex parte on a sufficient showing of urgency
Preliminary Injunction in tort, what requirements:
Provisional remedy designed to maintain the status quo pending a trial
issued after notice and an adversary hearing
1) Irreparable injury
2) Likelihood of success
3) Balance of hardships (must weigh in favor of P)
4) Public Interest
Permanent Injunction in tort, what requirements?
1) Inadequate Legal Remedy
3) (no) Defenses
When are legal remedies for damages/money restitution inadequate in tort?
1) too speculative
2) too small to compensate fully for actual injury
3) multiplicity of suits
4) injury may be irreparable
5) may be injury to land
When are legal remedies for replevin inadequate in tort?
1) D can keep the property by posting a bond
2) sheriff may be unable to find the property
When are legal remedies for ejectment inadequate in tort?
1) adequate remedy if P only wants a trespassing D off his land.
2) inadequate remedy if P wants removal of an encroaching structure
When is an injunctive decree feasible?
1) court must exercise too much supervision
2) negative or mandatory injunction appropriate?
Hardships balanced when D encroaches on P's land?
1. Intentional encroachment
: no balancing, P always wins.
2. Innocent encroachment
: court will balance, but lean strongly in favor of P seeking removal of encroachment
Hardships balanced in a nuisance case?
always balance hardships in a private nuisance case
Defenses to an injunction?
1. Latches (passing of time)
: has P's inaction encouraged D to act to his detriment?
2. Unclean hands
: P has unclean hands, must be related to the transaction in the suit
3. Freedom of speech
: 1st Am rule against prior restraints [national security, trade libel exceptions]
4. Criminal act
: equity will not enjoin a crime [try to characterize it as a tort]
Contract damages available?
Damages arise out of a breach of contract by the defendant.
1. Expectation damages
: benefit P expected to get out of the contract. Look to the future.
2. Consequential damages
: damages to P in addition to the lost expectation. Must be foreseeable and known by D at the time K was entered into
3. Liquidated Damages
: damages specified by contract
What requirements for liquidated damages?
1) actual damages difficult to calculate
2) amount specified in K is a reasonable approximation
*LD cannot be a penalty
Restitution in contract?
1) benefits unjustly retained by the D when there is a void or unenforceable K
2) benefits unjustly retained by D if P does not choose to sue under the K [quasi-contract, or quantum meruit]
*breaching party may sometimes recover in restitution even though she breached.
Specific performance of a K?
order the D to perform the K
1) definite and certain terms in a valid K [may need to be more definite than just a valid K requires!]
2) satisfaction of conditions/performance by P
3) inadequate legal remedy
5) (no) defenses
: K is void or voidable, deal is called off
*GD -> good dog
: K is valid and enforceable, but the written form of the K is wrong. K is rewritten correctly and is then enforced.
*VGD -> very good dog [Reformation requires a valid K!]
When is recission of a K proper?
a) mutual mistake of material fact (but not if it's a collateral fact re quality or desirability)
b) unilateral mistake (if the non-mistaken party knew or should have known)
c) misrepresentation (granted if D actually relied on the misrepresentation)
Defenses to recission?
1) unclean hands
3) election of remedies (P sues for damages first, recission is NOT allowed!)
Fraud in the inducement - non-disclosure of principal
When an agent has frauduently concealed the identity of his P, the contract will not be specifically enforceable.
Third party has a right to recission.
Must be an affirmative misrepresentation by the agent for htis exception to apply.
When is Reformation of a K proper?
a) mutual mistake
b) unilateral mistake (only if the non-mistaken party knew or should have known)
c) intentional misrepresentation
defenses to reformation?
2) sale to BFP (cuts off remedy)
3) parol evidence rule, SOF, negligence are not defenses!