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Avoidable Consequence Rule
Plaintiff must take reasonable steps to mitigate losses
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Collateral Source Rule
If P is compensated for losses by a source independent of D(such as insurance), D's liability is not reduced by this amount.
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General Damages-Tort
- Those damages inherent with the injury.
- Pain and suffering
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Special Damages
- Incidental to the injury
- Loss wages, economic losses and medial bills
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Measure of damages-Destruction of personal property/conversion
- Market value at time/place of destruction
- less salvage
- plus interest computed from time of valuation
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Replevin
Regain possession
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Assumpsit
Recover D's gains
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Measure of Damages-Damage of personal property
- Diminished value, or cost of repair (special measure-actual cost).
- Difference between before and after
- Must give both on exam and award whichever is less
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Punitive Damage-Tort
A sum of money may be awarded by the court to punish the defendant for willful, wanton or malicious conduct
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Constructive Trust
- If D used P property to get title to another item of property
- P can have a constructive trust on the newly acquired property.
**P is entitle to any appreciation value.
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Equitable Lien
If D uses P's property to improve property which D already owns, P may have an equitable lien on D's property.
*No interest to appreciation of the property
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Commingled Bank Accounts
- Rule in Claytons Case: “first in, first out”
- Rule in Halletts Case: Wrongdoer uses his own money first, timing of deposits is not determinative.
- Restatement or Modern Rule: D is not conscious or bad faith wrongdoer, P can have an equitable lien over the lowest intermediate balance in the account and on property traceable from account funds.
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Lowest Intermediate Balance
P's Constructive Trust or Equitable Lien is limited ot the lowest intermediate balance in the account
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Injunction
- An injunction is a personal order issued by a court of equity whereby the court orders a defendant to do or to refrain from doing certain conduct.
- Elements: TAEIPHTH
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Type of Injunction
- The type of injunction that an equity court will issue depends on whether or not it believes the plaintiff is faced with a serious emergency.
- The court may issue a TRO in an emergency situation.
- Otherwise, it may wait until after preliminary injunction or permanent injunction hearing before issues the order.
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Temporary Restraining Order (TRO)
- A temporary restraining order is an emergency order
- by an equity court
- mandating that a defendant do or no do something
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TRO Substantive Requirements
- The purpose of a TRO is to presevere the status quo pending the issuance or denial of a preliminary injunction.
- The plaintiff must prove that he will suffer irreparable harm if the TRO is not granted.
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TRO procedural Requirements
- The equity court may issue the TRO exparte (with out notive to the other party)
- if P can establish by affidavit that he attempted to give D notive of the hearing.
- TRO's remain in effect for up to 10 days, the courts may extend the order for an additional 10 days on a showing of good cause.
- P is required to post a bond to cover any losses the defendant may suffer if the court later rules in defendants favor.
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Preliminary Injunction
- Equitable remedy designed to preserve the status qui pending a trial on the merits of the plaintiffs claim.
- Diff between Prelim inj and TRO=D given notice of opportunity to be hear prior to being issued
- Elements of prelim injunction: irreparable harm, likelihood of success on the merits, balance of hardships in his faovr and granting the order will be in the publics interest
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Inadequacy of legal remedies
Goods are unique, land is unique, unique will prove that there is not adequate remedy at law.
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Enforceability
Court can enforce its order because D is in the jurisdiction and it has IN PERSONAM jurisdiction over him/her
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Irreparable Harm
Irreparable harm is serious harm for which money damages are not adequate compensation
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Property Right
- At common law, equity courts used injunctive relief to protect property rights only.
- Modernly, the use injunctions to protect personal rights as well.
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Balancing of Hardships
- Where there is no evidence of bad faith on the part of the defendant, the court will balance the hardships of parties when deciding whether to issues an injunction.
- The court will compare the hardships the plaintiff will sustain if the injunction is not granted against the hardship defendant will suffer if the injunction issues.
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Defenses-Laches
- Where a plaintiff has unreasonable delayed seeking equitable relief and the delay results in prejudice to the defendant
- the doctrine of laches provides that the court may deny the injunction
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Defense-Unclean Hands
- Unclean hands is a defense which may prevent a plaintiff form obtaining specific performance.
- An equity court will deny specific performance when the plaintiff has acted in an inequitable way with respect to a matter that is directly related to the parties dispute.
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Restitution-Assumpsit
Assumpsit is a restitution remedy used to prevent unjust enrichment by defendant.
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General Damages-K
- The protects a party's expectancy interest in a contract by allowing a damages suit for breach of contract.
- The expectancy is usually measured by comparing the contract price of a good to the reasonable price of a good to the reasonable price of a replacement good in the marketplace. A court will award the non-breaching party the difference between these two figures to protect the innocent parties benefit of the bargain.
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Consequential Damages-K
- HADLEY v. BAXENDALE
- P may recover damages within the contemplation of the parties at the time contract was made.
- Foreceeable, reasonably certain and unavoidable
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Liquidated Damages
Fair approximation of the anticipated harm cause by the breach
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Reliance Damages
When general and special damages are inapplicable, P may recover under reliance damages which is the cost incurred by P's reliance on the contract
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Specific Performance
- Equitable remedy whereby the equity court orders the breaching party to perform the contract
- If D ignores court order, the nonbreaching party can seek civil contempt sanction to enforce judgement.
- Court will review the validity of K as to sufficiency of consideration when determining the appropriateness of SP.
Elements: Contract, Adequacy of legal remedy/Enforceability/Mutuality/Conditions/Defenses/Equitable Conversion
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Mutuality
- At common law, the remedy of specific performance had to be available to both parties.
- Modernly mutuality of performance will suffice.
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Replevin
Under UCC, where good have been 'specially identifies" under a contract and the buyer is unable to cover by purchasing other goods, buyer has a right to replevy the goods in sellers possession even through title to those goods have not yet passed.
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