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QUESTIONS REMEDIES
Intro
A. Remedies questions will use words such as: “remedy,” “relief,” or state a specific
remedy.
B. Remedies questions will typically include other substantive law like torts or K’s.
C. Approach:
1. What’s the substantive area of law?
2. What’s the subtopic area of law?
3. Tip: the fact pattern may be susceptible to more than one substantive law
interpretation, ie torts and K’s—discuss both sets of remedies on the essay.
4. Make sure that P has a case.
5. What remedies require discussion?
a. Do substantive law first
b. P will always win the lawsuit in order to get remedies.
6. Order of Remedy Analysis:
a. Legal Restitutionary Remedies
b. Restitutionary Remedies
c. Equitable Remedies
D. Tip: essays will have 3-4 remedies at issue generally
TORT REMEDIES
A. Legal: Damages
What are the subfactors in B. Restitution:
balancing hardship to the public? 1. Legal:
a. Restitutionary Damages
b. Replevin
When is balancing of hardships c. Ejectment
particularly prevalent? 2. Equitable Restitution
a. Constructive trusts
b. Equitable Liens
C. Equitable remedies
1. Specific Performance
What are the 4 defenses? 2. Rescission
3. Reformation
Legal Damages
A. Compensatory
What is required for unclean 1. Based on injuries to P
hands? 2. Requirements:
a. Causation
b. Foreseeability and proximate cause
c. Certainty
d. Mitigation
3. Consequential Damages
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CA Bar 2009: Remedies
a. Availabe for related damages foreseeable at the time of formation
b. Covers non-standard or special circumstances damages
What is required for laches?
c. Often tested: the reputation fact pattern: breach caused a foreseeable hit to the
reputation
1) Remedy: compensatory damages—discuss the std measure of damages
If D wins on laches, can P get 2) Sub Remedy: consequential damages
anything?
B. Nominal: allowed
C. Punitive
1. Not allowed
2. Tip: but see if the conduct can be re-characterized as a torts case to get PD
D. Liquidated Damages Clause Fact Patterns
1. Test for validity of a liquidated damages clause:
a. Damages are very difficult to ascertain of formation
b. This was a reasonable forecast of what they would be
2. If valid P gets only liquidated amount available
3. If invalid P doesn’t get the liquidated amount but will get compensatory
damages
4. Tip: if bar question says that either actual damages or liquidated damages are
Can you enjoin crime? available invalid clause
5. When a valid liquidated damages award prevents P from getting actual damages, P
can nonetheless still get specific performance unless the K specifically provides
that this damages amount is to be the only remedy
Who is bound by an injunction?
A. Checklist:
1. K is valid
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CA Bar 2009: Remedies
2. K conditions of P must be satisfied
3. Inadequate legal remedy alternative
4. Mutuality of remedy
5. Feasibility of Enforcement
6. Defenses
B. K is valid: P must be able to show that K is valid
1. NB: to get SP, P must show the contract terms w/ more certainty and
definitenessthan would be the case in an action for money damages at law.
Otherwise it would be too difficult to enforce “according to the K’s terms.”
C. K conditions of P must be satisfied
1. P must show that he already fulfilled or is ready and able to perform or is excused
from performing.
2. Fact patterns on K conditions:
a. Deficiencies and Land Sale K’s: seller doesn’t deliver agreed-upon
consideration
1) Seller as P:
A) Can enforce K if the defect is minor
B) Cannot enforce if the defect is major, unless seller can cure the
defect before or at closing.
2) Buyer as P
A) Can enforce K even if defect is major
B) NB: court will not enforce the K if the defect is extraordinarily large
(ie half the land is missing). Ct will simply refuse to act.
3) Bar Exam Imperative: if you decide that SP should be granted under
rules above even though a defect remains, you must note that a court will
reduce the purchase price.
A) NB: buzzword-abatement in the purchase price
b. Time of the essence fact pattern: B doesn’t meet K condition of timely
performance
1) Facts:
A) There will be a land sale K w/ an express time is of the essence
clause.
B) Clause will contain a forfeiture provision saying that if performance
isn’t timely, Buyer forfeits all performance rendered to date
C) There will have been partial performance which is now potentially
subject to forfeiture.
2) Buyer will make a late payment triggering the time is of the essence
clause, thus Seller wants to keep land and all the payments to date.
3) Result:
A) “Equity abhors forfeitures.” don’t void B’s rights for mere late
tender of payment if:
What damages are allowed for
(1) Loss to S is small
personal injury torts?
(2) Tardiness is de minimis
(3) Waiver (S has accepted late payments in past)
(4) B would suffer undue hardship
B) B’s material breach: grant restitution B less S’s damages to prevent
unjust enrichment to S
c. If time is not of the essence and B breaches by tendering late payment, a court
would most likely not allow forfeiture and instead allow the later tender as
satisfaction of B’s obligations as long as made w/in a reasonable time and not
What damages are allowed for prejudicial to S.
fraud? D. Inadequate legal remedy alternative
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CA Bar 2009: Remedies
1.
Compensatory damages = basic alternative
2.
Why would they be inadequate:
a. Speculative damages
b. D is insolvent
c. Multiple suits are necessary
d. Thing bargained for is unique
3. Tip: the uniqueness prob:
a. If property is “unique,” then P can’t go out and buy another.
What are the Kremedies? Legal? b. Rule: land is unique
Restitutionary? Equitable? 1) NB: sellers of land can get specific performance even though all they
have coming in is money
c. Rule: personal property is not unique. Exceptions:
1) One of a kind or very rare
2) Personal significance to buyer
3) Circumstances make chattel unique
4) Rule: “uniqueness” is tested at time of litigation
E. Mutuality of Remedy
1. Fact pattern: B, at 17 years of age, enters into K to buy land from S, an adult. S
refuses to convey and B sues for specific performance.
2. Analysis:
a. This is a mutuality fact pattern where D would argue that P shouldn’t be
allowed to enforce the K against D b/c D could not similarly enforce the K
against P. (here b/c of lack of capacity.)
b. Judge will reject the mutuality argument if it feels secure that P will perform.
c. Grant SP and have the decree provide for simultaneous performance.
F. Feasibility of Enforcement
1. Fact pattern: SP of a service
a. Rule: Services are not specifically enforceable
b. Enforcement probs
c. Involuntary servitude
What are compensatory damages
G. Defenses
based on?
1. Equitable Defenses
a. Unclea hands
b. Laches
What are the requirements? (4) c. Unconsionability
1) Tested at the time of K formation
2) More than a bad deal, must also have some “smell factor” facts
What are consequential damages 2. K Defenses
available for? a. Mistake
b. Misrepresentation
c. SoF
3. Bar exam fav: SoF/Partial performance
What are the requirements for
consequential damages? a. Prob will involve a land sale; K will have been an oral K.
b. Analysis:
1) P will sue for specific performance.
2) D will argue SoF.
Can consequential damages be a
3) P will argue that he has 1) rendered valuable partial performance and 2)
remedy for reputation injury?
in reliance on the K, then P can get SP b/c it’s out of SoF
c. “Valuable part performance”
1) Payment in whole or part
Are nominal damages allowed? 2) Possession
3) Valuable improvements
4) Valuable services (modern trend)
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CA Bar 2009: Remedies
Are punitive damages allowed? 5) Any 2 of the top 3 will be good enough.
4. Bar exam fav: Specific Performance
a. Equitable Conversion
When is a liquidated damages 1) Where a valid land sale K is entered into, an equitable conversion occurs
clause valid? (2) upon execution thus after K is signed but before title is conveyed:
2) Seller: retains a personal property interest, ie a specifically enforceable
right to the money
What does P get if it is valid? 3) Buyer: retains a real property interest, ie the specifically enforceable
right to land
4) Thus if S transfers title to a BFP, S cuts off B’s right to specific
performance but B can still sue for breach of K.
What does P get if its invalid?
b. Rights
1) Majority view: B is liable for purchase price even if there’s property
damage before closing
How do you treat a clause that says 2) Minority and modern trend: risk of loss shifts to B only when he gets
actual damages or liquidated possession or legal title
damages are allowed? c. Death of a party to a K
1) S’s death after entering into a specifically enforceable K
A) Legal title passes to heir or devisee who’s entitled to “real property”
Can P get SP and liquidated B) Right to purchase price passes to person who’s entitled to “personal
damages? property”
C) B must join administrator of estate and heir to sue for specific
performance.
What situations can you use 2) B’s death after entering into specifically enforceable K
restitution to prevent unjust A) Interest in land goes to person entitled to his real property
enrichment? B) S must join B’s administrator and heir to sue for SP
d. Covenants not to compete
1) Covenant must protect a legitimate interest of the person in whose favor
it runs services must be unique
2) Covenant must be reasonable in both geographic scope and durational
scope.
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CA Bar 2009: Remedies
What is mutuality?
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