Equity & Remedies Outline à Trinity 2010 J
COMPENSATORY DAMAGES
COMPENSATORY DAMAGES – money serves as a SUBSTITUTE – designed to restore P to his/her rightful position, recognizing that money is an imperfect substitute.
– EXAMPLE: money for a lost arm.
– TORT: make the P whole by providing an award of money to compensate for loss or injury.
– CONTRACT: make the P whole by compensating for loss and protecting the P’s expectation interest.
– * EXAMàNEVER SAY that compensatories are intended to make P whole OR to put them in the position they were in before the tort.
PROBLEMS IN EVALUATION
– 1) AGGREGATE LITIGATION – where you have a number of Ps, you categorize the harm and fix a price to EACH category; NOT individualized.
o Note 3, pg. 16: money is the remedy for pain and suffering or injury.
§ For those Ds who do not settle, what credit for they get from those who did? – the P must look and see if the jurisdiction follows the Pro Tonto or Pro Rata rule.
§ GENERAL RULE: Where you have 2 Ds, both 50% at fault à You settle w/ D1, but not D2. D1 pays you $25K and is released…
· PRO RATA – MAJORITY: D2 gets a PERCENTAGE set-off. D2 only pays his % share.
o EXAMPLE: D2 pays $50K. P basically got $75K for a case worth $100K.
o BETTER FOR DEFENDANTS.
o PLAINTIFF’S PROBLEM à Empty Chair Defense: in trial, D will just blame the whole thing on the D not there. Jury will artificially inflate the value of the empty chair D’s participation, and apportion more to the empty chair than the facts really allow.
· PRO TONTO – MINORITY: D2 gets credited dollar-for-dollar. D2 would be liable for the remaining amount of the judgment.
o EXAMPLE: D2 pays $75K.
o Subtract any settlement from the total award and apportion that between the non-settling Ds.
o BETTER FOR PLAINTIFFS. They’ll always receive full judgment.
– 2) TAKINGS CASES
o Under the 5th Amendment (eminent domain), private property can be condemned for public use as long as condemnee is provided just compensation – synonymous with FMV.
§ KEY: Fair Market Value – nothing more, nothing less.
o Where the P is asking for:
§ COMPENSATORIES: D has the right to a jury trial.
§ EQUITABLE RELIEF: The judge will decide.
o GENERAL RULE: NO subjective loss or compensation for sentimental value.
§ EXCEPTION: If you own 50 acres and the government condemns 25 and the condemnation of the 25 leads to a diminution of the value of your land, that may lead to a compensatory damages award.
o Public Use Doctrine has historically allowed for:
§ 1) Interstate highways, public parks, etc.; AND
§ 2) Restoration of blighted areas.
– 3) SPECIAL PURPOSE/UNIQUE PROPERTY
o TRINITY CHURCH: if you have a piece of property that has no FMV (such as special purpose property, historic landmark, etc.) then you have to suggest to the court what an appropriate value would be.
§ Personal Injury Analogy – Should a person be able to recover NOW for a disease that they have a great likelihood of getting later due to something specific that experts will testify to?
· Court should create a fund to make sure that the money is spent ONLY on injuries.
§ Medical Monitoring Analogy – People are exposed to something, but they are not sick yet.
· Court should impose a court-administered fund where all of the Ps can draw from the fund for the cost of medical exams as a prophylactic measure.
– 4) FLUCTUATING VALUES
o DECATUR: “Time of Loss” in the case of damaged crops is determined by the time of harvest.
o Note 3, pg. 35: SECURITIES
§ A minority of states value the loss at the time of the wrong.
§ A MAJORITY of states resolve doubts against D by awarding the highest value between the time of the wrong and the time of the trial, the filing of the suit, or some similar date.
§ Federal Courts – give Ps the highest value between the time she learned of the loss and a reasonable time thereafter in which she could have replaced the securities.
– 5) WRONGFUL DEATH
o Wrongful Death Action – statutorily based cause of action brought by a person who qualifies as a beneficiary under the state’s wrongful death statute to recover for pecuniary loss.
§ Pecuniary loss in wrongful death cases means not only the % of the decedent’s income that would have gone to the maintenance of their family – it ALSO entails a subjective measure of loss: comfort/companionship/consortium/guidance, etc.
§ ALL Jurisdictions à compensation of funeral and burial expenses.
§ MINORITY of jurisdictions will extend and give emotional distress.
§ Tort must be A PROXIMATE CAUSE of the wrongful death.
§ This is all about dependency.
o Difficult Categories:
§ Children: part of the decedent’s income that would have gone to the maintenance of the family unit.
· VERY ELASTIC – damages can be very high.
· Intangibles are easier – comfort, companionship, etc.
· Very rarely will courts allow testimony on the
slow to develop.
§ Most successful cases are sudden traumatic accidents.
§ In order to recover, must meet The THING Test à
· 1) Bystander must be physically present and in close proximity.
· 2) Contemporaneous realization of tortious misconduct (some negligence) by D.
· 3) Close familial tie between P and victim.
o Spouse or child.
· 4) Emotional distress.
– 8) DEFAMATION: exclusive relationship between harm suffered and damages received.
o What is your reputation/good name worth?
o Defamatory statement made concerning the P, published by the D.
o Actual Malice – publishing with knowledge of falsity or a reckless disregard for the truth.
§ If P can show this, compensatories are PRESUMED and punitives are available.
o Common Law Malice – in addition to the statement being false, the speaker said it/wrote it with an intent to destroy.
§ Must have intent to injure with reckless disregard for whether or not injury will occur.
§ Not only do I know it’s false, I’m out to get you!
o 3 Types of Defamationà
§ Public Person/Public Concern – P must prove ACTUAL MALICE by CLEAR AND CONVINCING evidence in which case they will be entitled to presumed compensatory damages.
· Can recover punitive damages if P can show common law malice.
§ Private Person/Public Concern – P must show NEGLIGENCE and FALSITY AND they must show some sort of ACTUAL INJURY for compensatory damages.
· MINORITY – P must prove ACTUAL MALICE.
· P must show ACTUAL HARM to receive compensatory damages.
· COMMON LAW MALICE for punitives.
· “Actual Injury” is very broad – includes shame.
§ Private Person/Private Matter – AT MOST, the person would have to show NEGLIGENCE and FALSITY and all the elements of defamation.
· P does NOT need to prove actual malice.
· SO at most, the P must show negligence and ALL of the elements of defamation for the 1st Am. concern to get presumed damages.
· COMMON LAW MALICE for punitives.