PREVIOUS |TABLE OF CONTENTS | NEXT

VI. BREACH OF CONTRACT MEASURE OF DAMAGES
  A. Time of Breach is Critical
    1. The breach of contract damage theory calculates damages by taking the difference between a stock option exercise price and the market price of the same stock at the time of the breach. Hermanowski v. Action Corporation, 580 F.Supp. 140, 146 (E.D.N.Y. 1983)(rejecting conversion loss measure of damages because the defendant, in refusing to allow exercise of options, did not exercise dominion and control over stock and was therefore not guilty of conversion), aff'd in relevant part, 729 F.2d 921 (2d Cir. 1984).
    2. This measure of damages calculates damages as of the date of breach and determines damages based upon the "loss sustained or the gain prevented at the time and place of breach." Simon v. Electrospace Corporation, 28 N.Y.2d 136, 145, 269 N.E.2d 21, 26 (1971)(breach of contract action to recover finder's fee in the form of stock; court characterizes wrongful act as a nondelivery of stock and not a conversion).
  B. Goal is to Make Plaintiff Whole
    1. In a breach of contract case, the verdict should make the plaintiff whole, i.e., "put him in as good a condition as if the contract had been performed." Buford v. Wilmington Trust Company, 841 F.2d 51, 56 (3d Cir. 1988)(applying Pennsylvania law and holding that breach of contract to deliver securities having a market value is the market value on the date the securities should have been delivered plus pre-judgment interest; reversing and remanding for a redetermination of damages based on value of stock on date it should have been delivered rather than date of the judgment).

PREVIOUS |TABLE OF CONTENTS | NEXT

© 2001 Law Offices of Sharon M. Erwin, L.L.C.


HOME | PRACTICE AREAS | ATTORNEY PROFILES | ARTICLES | LINKS | CONTACT US
Copyright © 2001-2016 The Law Offices of Sharon M. Erwin, L.L.C. All rights reserved.
Legal Disclaimer, Privacy Notice and Copyright Notice