[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.44,0:00:04.21,Default,,0000,0000,0000,,>> We now turn to the last\Nlimitation on the recovery of
Dialogue: 0,0:00:04.21,0:00:08.76,Default,,0000,0000,0000,,contract damages that we will\Nconsider, reasonable certainty.
Dialogue: 0,0:00:08.76,0:00:14.71,Default,,0000,0000,0000,,Reasonable certainty is generally viewed\Nas limitation on expectation damages.
Dialogue: 0,0:00:14.71,0:00:16.72,Default,,0000,0000,0000,,It grows out of the basic principles
Dialogue: 0,0:00:16.72,0:00:18.97,Default,,0000,0000,0000,,related to the burden of\Nproof in a civil case,
Dialogue: 0,0:00:18.97,0:00:21.64,Default,,0000,0000,0000,,the requirement that a\Nplaintiff prove each element of
Dialogue: 0,0:00:21.64,0:00:25.42,Default,,0000,0000,0000,,a claim for relief by a\Npreponderance of the evidence.
Dialogue: 0,0:00:25.42,0:00:29.72,Default,,0000,0000,0000,,This burden applies with equal force\Nto a plaintiff's proving damages.
Dialogue: 0,0:00:29.72,0:00:32.95,Default,,0000,0000,0000,,The plaintiff must prove to the\Nfactfinder not only that she
Dialogue: 0,0:00:32.95,0:00:36.14,Default,,0000,0000,0000,,was damaged as a result of the\Ndefendant's breach of contract,
Dialogue: 0,0:00:36.14,0:00:39.19,Default,,0000,0000,0000,,she must also prove the\Nextent of those damages,
Dialogue: 0,0:00:39.19,0:00:43.80,Default,,0000,0000,0000,,giving the factfinder a basis for\Ndetermining the amount of her loss.
Dialogue: 0,0:00:43.80,0:00:46.63,Default,,0000,0000,0000,,The requirement that the\Ninjured party establish
Dialogue: 0,0:00:46.63,0:00:49.45,Default,,0000,0000,0000,,the fact of damages and the\Namount of those damages with
Dialogue: 0,0:00:49.45,0:00:51.67,Default,,0000,0000,0000,,reasonable certainty is set forth in
Dialogue: 0,0:00:51.67,0:00:56.21,Default,,0000,0000,0000,,Section 352 of the Restatement\NSecond of Contracts.
Dialogue: 0,0:01:03.78,0:01:07.24,Default,,0000,0000,0000,,In general, once a party\Nestablishes that it
Dialogue: 0,0:01:07.24,0:01:10.13,Default,,0000,0000,0000,,was damages by the defendant's\Nbreach of contract,
Dialogue: 0,0:01:10.13,0:01:12.64,Default,,0000,0000,0000,,courts favor the injured\Nparty by doing its
Dialogue: 0,0:01:12.64,0:01:15.85,Default,,0000,0000,0000,,best to come up with a figure\Nfor the amount of damages.
Dialogue: 0,0:01:15.85,0:01:18.76,Default,,0000,0000,0000,,The law does not require\Nthat the injured party
Dialogue: 0,0:01:18.76,0:01:22.03,Default,,0000,0000,0000,,prove the amount of damages\Nwith mathematical certainty.
Dialogue: 0,0:01:22.03,0:01:26.26,Default,,0000,0000,0000,,This is made clear in\Ncomment a to Section 352.
Dialogue: 0,0:01:26.26,0:01:30.74,Default,,0000,0000,0000,,Appellate courts tend to uphold\Njury awards of contract damages,
Dialogue: 0,0:01:30.74,0:01:34.25,Default,,0000,0000,0000,,where the evidence was sufficient\Nto enable the factfinder to make
Dialogue: 0,0:01:34.25,0:01:39.23,Default,,0000,0000,0000,,a fair and reasonable estimate\Nof the injured party's loss.
Dialogue: 0,0:01:39.23,0:01:44.24,Default,,0000,0000,0000,,An interesting example of a court's not\Nrequiring mathematical certainty with
Dialogue: 0,0:01:44.24,0:01:46.13,Default,,0000,0000,0000,,respect to proving damages arose in
Dialogue: 0,0:01:46.13,0:01:49.34,Default,,0000,0000,0000,,Bollea versus World\NChampionship Wrestling.
Dialogue: 0,0:01:49.34,0:01:52.01,Default,,0000,0000,0000,,In that case, the wrestler known as
Dialogue: 0,0:01:52.01,0:01:54.68,Default,,0000,0000,0000,,Hulk Hogan sued his former\Nemployer for breach of
Dialogue: 0,0:01:54.68,0:01:57.20,Default,,0000,0000,0000,,its contractual obligation to make
Dialogue: 0,0:01:57.20,0:02:00.37,Default,,0000,0000,0000,,him a featured wrestler at\Na major wrestling event.
Dialogue: 0,0:02:00.37,0:02:04.70,Default,,0000,0000,0000,,Hulk Hogan sought damages for\Ndiminished future earnings.
Dialogue: 0,0:02:04.70,0:02:07.91,Default,,0000,0000,0000,,In other words, for his\Nloss of future profits.
Dialogue: 0,0:02:07.91,0:02:10.58,Default,,0000,0000,0000,,In defending, the wrestling\Npromoter argued that
Dialogue: 0,0:02:10.58,0:02:13.84,Default,,0000,0000,0000,,the wrestler's damage claim\Nwas too vague and speculative.
Dialogue: 0,0:02:13.84,0:02:15.73,Default,,0000,0000,0000,,The court disagreed.
Dialogue: 0,0:02:15.73,0:02:19.07,Default,,0000,0000,0000,,It determined that based on his\Nlong history of past earnings,
Dialogue: 0,0:02:19.07,0:02:22.10,Default,,0000,0000,0000,,Hulk Hogan's evidence\Nwas sufficient to enable
Dialogue: 0,0:02:22.10,0:02:26.74,Default,,0000,0000,0000,,a jury to calculate the amount of\Ndamages with reasonable certainty.
Dialogue: 0,0:02:26.74,0:02:30.77,Default,,0000,0000,0000,,On the other hand, not every\Nplaintiff is as successful as
Dialogue: 0,0:02:30.77,0:02:34.78,Default,,0000,0000,0000,,Hulk Hogan in attempting to prove loss\Nprofit with reasonable certainty.
Dialogue: 0,0:02:34.78,0:02:37.85,Default,,0000,0000,0000,,In Chicago Coliseum Club v Dempsey,
Dialogue: 0,0:02:37.85,0:02:42.34,Default,,0000,0000,0000,,the plaintiff boxing promoter brought\Nin action against the famous boxer,
Dialogue: 0,0:02:42.34,0:02:45.17,Default,,0000,0000,0000,,Jack Dempsey, for failing to fulfill
Dialogue: 0,0:02:45.17,0:02:49.18,Default,,0000,0000,0000,,his contractual obligation to\Nengage in a scheduled boxing match.
Dialogue: 0,0:02:49.18,0:02:52.40,Default,,0000,0000,0000,,Though the court found that\NDempsey breached the contract,
Dialogue: 0,0:02:52.40,0:02:56.51,Default,,0000,0000,0000,,the court refused to award expectation\Ndamages for lost profits of
Dialogue: 0,0:02:56.51,0:03:02.24,Default,,0000,0000,0000,,$1,600,000 because they could not be\Nestablished with reasonable certainty.
Dialogue: 0,0:03:02.24,0:03:04.52,Default,,0000,0000,0000,,The court stated,
Dialogue: 0,0:03:04.52,0:03:07.34,Default,,0000,0000,0000,,the profits from a boxing contest of
Dialogue: 0,0:03:07.34,0:03:10.55,Default,,0000,0000,0000,,this character open to the\Npublic is dependent upon
Dialogue: 0,0:03:10.55,0:03:13.70,Default,,0000,0000,0000,,so many different circumstances\Nthat they are not
Dialogue: 0,0:03:13.70,0:03:17.06,Default,,0000,0000,0000,,susceptible of definite\Nlegal determination.
Dialogue: 0,0:03:17.06,0:03:19.70,Default,,0000,0000,0000,,The success or failure\Nof such an undertaking
Dialogue: 0,0:03:19.70,0:03:22.64,Default,,0000,0000,0000,,depends largely upon the\Nability of the promoters,
Dialogue: 0,0:03:22.64,0:03:24.77,Default,,0000,0000,0000,,the reputation of the contestants,
Dialogue: 0,0:03:24.77,0:03:29.87,Default,,0000,0000,0000,,and the conditions of the weather at and\Nprior to the holding of the contest.
Dialogue: 0,0:03:29.87,0:03:31.61,Default,,0000,0000,0000,,The accessibility of the place,
Dialogue: 0,0:03:31.61,0:03:33.18,Default,,0000,0000,0000,,the extent of the publicity,
Dialogue: 0,0:03:33.18,0:03:36.29,Default,,0000,0000,0000,,the possibility of other\Nencounter attractions,
Dialogue: 0,0:03:36.29,0:03:40.08,Default,,0000,0000,0000,,and many other questions which\Nwould enter into consideration.
Dialogue: 0,0:03:40.08,0:03:43.79,Default,,0000,0000,0000,,Such an entertainment lacks\Nutterly the element of
Dialogue: 0,0:03:43.79,0:03:48.24,Default,,0000,0000,0000,,stability which exists in\Nregular organized business.
Dialogue: 0,0:03:48.24,0:03:50.61,Default,,0000,0000,0000,,The requirement of reasonable certainty
Dialogue: 0,0:03:50.61,0:03:52.40,Default,,0000,0000,0000,,can cause great problems when a plaintiff
Dialogue: 0,0:03:52.40,0:03:56.39,Default,,0000,0000,0000,,is seeking damages related to lost\Nfuture profits from a new business.
Dialogue: 0,0:03:56.39,0:03:58.55,Default,,0000,0000,0000,,Unlike the Hulk Hogan case,
Dialogue: 0,0:03:58.55,0:04:01.01,Default,,0000,0000,0000,,when profits from a new\Nbusiness are an issue,
Dialogue: 0,0:04:01.01,0:04:03.83,Default,,0000,0000,0000,,there exists no past track record on
Dialogue: 0,0:04:03.83,0:04:07.50,Default,,0000,0000,0000,,which a court can base a\Ndetermination of future damages.
Dialogue: 0,0:04:07.50,0:04:10.34,Default,,0000,0000,0000,,Nonetheless, if a new business owner has
Dialogue: 0,0:04:10.34,0:04:12.68,Default,,0000,0000,0000,,undertaken market studies prior to opening
Dialogue: 0,0:04:12.68,0:04:17.18,Default,,0000,0000,0000,,the business and can present evidence\Nof income and expense projections,
Dialogue: 0,0:04:17.18,0:04:19.73,Default,,0000,0000,0000,,courts are more open to\Nmaking a finding that loss
Dialogue: 0,0:04:19.73,0:04:23.10,Default,,0000,0000,0000,,future profits can be determined\Nwith reasonable certainty.
Dialogue: 0,0:04:23.10,0:04:26.51,Default,,0000,0000,0000,,If an injured party cannot\Nprove expectation damages with
Dialogue: 0,0:04:26.51,0:04:28.64,Default,,0000,0000,0000,,reasonable certainty because the court
Dialogue: 0,0:04:28.64,0:04:30.59,Default,,0000,0000,0000,,concludes that they are too speculative,
Dialogue: 0,0:04:30.59,0:04:33.32,Default,,0000,0000,0000,,the disappointed plaintiff\Nis relegated to seeking
Dialogue: 0,0:04:33.32,0:04:36.96,Default,,0000,0000,0000,,out-of-pocket reliance damages\Nor restitution damages,
Dialogue: 0,0:04:36.96,0:04:41.39,Default,,0000,0000,0000,,generally an amount far less\Nthan expectation damages.
Dialogue: 0,0:04:41.39,0:04:43.70,Default,,0000,0000,0000,,Nonetheless, even in such cases,
Dialogue: 0,0:04:43.70,0:04:45.74,Default,,0000,0000,0000,,reliance or restitution damages
Dialogue: 0,0:04:45.74,0:04:48.68,Default,,0000,0000,0000,,must also be determined\Nwith reasonable certainty.
Dialogue: 0,0:04:48.68,0:04:52.77,Default,,0000,0000,0000,,Though this is often easier\Nas a matter of evidence.