- •CONTENTS
- •CONTRIBUTORS
- •PREFACE
- •Introduction
- •I. A Positive Account
- •II. Normative and Historical Accounts
- •III. Explaining Legal Doctrine
- •A. Willful Breach
- •B. Comparative Fault
- •Conclusion
- •ACKNOWLEDGMENT
- •Introduction
- •C. Summary
- •Conclusion
- •Introduction
- •B. Some Striking Nuances in Common Law Systems
- •II. A Market Function Approach
- •A. Ethics or Economics – The Wrong Question
- •B. Party and Market Expectation as Guidelines
- •D. Fault, Foreseeability, and Other “Softeners” of Strict Liability
- •Conclusion
- •I. Fault and Uncertain Contractual Intent
- •II. An Expanded Law and Economics Approach to Fault
- •III. A Fault-Based Approach to Contract Damages
- •Conclusion
- •Introduction
- •A. A Model
- •B. Fault
- •C. A Comparison: Strict Liability Versus Negligence
- •II. Doctrine
- •A. Impossibility/Impracticability
- •B. Reasonable or Substantial Performance
- •C. Good Faith and Best Efforts
- •D. Interpretation/Implied Terms
- •E. Conditions
- •F. Damages
- •Introduction
- •I. Unconscionability
- •A. Markets
- •B. Moral Fault
- •II. Unexpected Circumstances
- •III. Interpretation
- •IV. Mistake
- •C. Cases in Which the Nonmistaken Party Neither Knew nor Had Reason to Know of the Mechanical Error
- •V. Nonperformance
- •Conclusion
- •Introduction
- •I. Modernizing Tort and Contract Around Fault
- •II. Explaining the Fault Swap
- •Conclusion
- •Introduction: From Fault to Negligence – and Back
- •I. Tort Law
- •III. Gratuitous Transactions: Bailment and Agency
- •A. Coggs v. Bernard
- •C. Siegel v. Spear and Comfort v. McGorkle
- •D. Medical Malpractice, Occupier’s Liability, and Guest Statutes
- •IV. Frustration and Impossibility
- •Conclusion
- •Conclusion
- •A. Analogies in Criminal Law
- •B. Lay Assessments of Culpability
- •C. Two Ways of Defining “Willful”
- •B. “Willful” as a Test for Inefficiency?
- •B. Optimal Damages Under Strict Liability
- •Conclusion
- •II. Cost of Correction Versus Diminution in Value
- •B. Treatment by the Courts
- •Conclusion
- •Introduction
- •C. An Information-Based Explanation
- •B. Informal Lessons from the Example
- •D. From Moral Hazard to Adverse Selection
- •II. Willful Breach Doctrine
- •A. Overcompensatory Expectation Damages
- •B. Tort Damages for Bad-Faith Breach
- •C. Restitution
- •Conclusion
- •Introduction
- •I. Expectation Damages and Willful Breach
- •II. Willfulness, Material Breach, and Damages
- •Conclusion
- •Introduction
- •A. Noncooperation
- •B. Overreliance
- •A. Setting the Stage
- •B. Noncooperation
- •1. When Should Avoiding Overreliance be the Default Rule?
- •Conclusion
- •Introduction
- •I. Stipulation, Fault, and Mitigation
- •II. Encouraging Stipulation
- •A. How Courts Encourage Parties to Stipulate
- •B. Two Advantages of Stipulation: Knowledge and Mitigation
- •Conclusion
- •Introduction
- •II. Comparative Negligence
- •III. Mitigation
- •IV. Reasonable Reliance
- •V. Causation
- •VI. Foreseeability
- •Conclusion
- •I. Summary of the Argument that Breach May Not Be Immoral Given the Incompleteness of Contracts
- •F. When Is Breach Immoral and When Is It Moral in Practice?
- •II. Criticism and Discussion of the Foregoing Argument
- •Conclusion
- •Introduction
- •I. Promise De-moralized, Contract Moralized
- •II. Contract and Promise: More on the Relationship
- •IV. Harm, Fault, and Remedies for Breach
- •V. Fault and Institutional Harm
- •Conclusion: Toward a Moral Law of Contract
- •I. Breach as Moral Harm
- •III. Moral Norms as Default Rules
- •Conclusion
- •CASE INDEX
- •SUBJECT INDEX
CASE INDEX
33 Greenman v. Yuba Power Prods., Inc., 377 P.2d 897 (Ca. 1963), 112
Afram Export Corp. v. Metallurgiki Halyps, SA, 772 F.2d 1358 (1985), 250 Alaska Packers’ Ass’n v. Domenico, 117 F. 99 (9th Cir. 1902), 13
Albre Marble & Tile Co. v. John Bowen Co., 155 N.E.2d 437 (Mass. 1959), 89 Aldon Indus. v. Don Myers & Assoc’s., 517 F.2d 188 (5th Cir. 1975), 228
Allied Canners & Packers v. Victor Packing Co., 209 Cal. Rptr. 60 (Ct. App. 1984),136, 166 Am. Mortgage Inv. Co. v. Hardin-Stockton Corp., 671 S.W.2d 283 (Mo. Ct. App. 1984), 208 Am. Trading & Prod. Corp. v. Shell Int’l Marine Ltd., 453 F.2d 939 (2d Cir. 1972), 75 AMPAT/Midwest, Inc. v. Ill. Tool Works Inc., 896 F.2d 1035 (7th Cir. 1990), 209
Anderson v. Cont’l Ins. Co., 271 N.W.2d 368 (Wis. 1978), 187 Aronson v. Lewis, 473 A.2d 805 (Del. 1984), 48
Astley v. Austrust Ltd., (1999) 197 C.L.R. 1, 213
Attorney General v. Blake, [2001] 1 AC 268 (HL), 285
Barker v. Lull Engineering Co., 573 P.2d 443 (Cal. 1978), 125
Billigmeier v. Concorde Marketing, Inc., No. 04–01–324, 2001 WL 1530356, (Minn. Ct. App. Dec. 4, 2001), 151
Brown v. Merlo, 506 P.2d 212 (Cal. 1973), 128
Budahl v. Gordon & David Assoc., 323 N.W.2d 853 (S.D. 1982), 138
Campbell v. State Farm Mutual Automobile Insurance Co., 538 U.S. 408 (2003), 187–8
Carfield & Sons, Inc. v. Cowling, 616 P.2d 1008 (Colo. Ct. App. 1980), 211
Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991), 133
Chicago Coliseum Club v. Dempsey, 265 Ill. App. 542 (1932), 228–9, 231–2
City of Anderson v. Salling Concrete Corp., 411 N.E.2d 728 (Ind. Ct. App. 1980), 171
City School Dist. v. McLane Constr. Co., 445 N.Y.S.2d 258 (App. Div. 1981), 168
Classic Cheesecake Co. v. JPMorgan Chase Bank, N.A., 546 F.3d 839 (7th Cir. 2008), 16
Coggs v. Bernard, (1703) 2 Ld. Raym. 909, 92 Eng. Rep. 107 (Q.B.), 118, 122, 124, 127 Comfort v. McCorkle, 268 N.Y.S. 192 (N.Y. Sup. Ct. 1933), 127
Commercial Discount Co. v. Town of Plainfield, 180 A. 311, 313 (Conn. 1935), 151
Crookston v. Fire Ins. Exch., 860 P.2d 937 (Utah 1993), 188
Daniels v. White & Sons, Ltd., (1938) 4 All E.R. 258 (K.B.), 41
Dekker v. Stichting Vormingscentrum voor Jong Volwassenen (VJV-Centrum) Plus, 1990 E.C.R. I-3941, 48
Denny v. Ford Motor Co., 662 N.E.2d 730 (N.Y. 1995), 112–3
305
306 • Case Index
Donovan v. RRL Corp., 27 P.3d 702 (Cal. 2001), 94
Drews Co. v. Ledwith-Wolfe Assoc’s., 371 S.E.2d 532 (S.C. 1988), 229
Eastern S.S. Lines, Inc. v. United States, 112 F. Supp. 167 (Ct. Cl. 1953), 171
East River Steamship Corp. v. Transamerica Delaval, Inc., 476 U.S. 858 (1986), 113
Edgewater Constr. Co. v. 81 & 3 of Watertown, Inc., 769 N.Y.S.2d 343 (N.Y. App. Div. 2003), 136 Edward M. Crough, Inc. v. Department of General Services, 572 A.2d 457 (D.C. 1990), 245 Escola v. Coca Cola Bottling Co., 150 P.2d 436 (Ca. 1944), 112
Extra Equipamentos e Exportação Ltda. v. Case Corp., 541 F.3d 719 (7th Cir. 2008), 11
Feld v. Henry S. Levy & Sons, Inc., 335 N.E.2d 320 (N.Y. 1975), 78–9
Fortier v. Dona Anna Plaza Partners, 747 F.2d 1324 (10th Cir. 1984), 208
Fretwell v. Protection Alarm Co., 764 P.2d 149 (1988), 232
Gateway Western Railway Co. v. Morrison Metalweld Process Corp., 46 F.3d 860 (8th Cir. 1995), 243 Gifford v. Commissioner of Public Health, 105 N.E.2d 476 (Mass. 1952), 88
Gifford Refining Co. v. Landa Cotton Oil Co., 190 U.S. 540 (1903), 67
Glover v. Metro. Life Ins. Co., 664 F.2d 1101, 1105 (8th Cir. 1981), 93
Greenman v. Yuba Power Prods., Inc., 377 P.2d 897 (Ca. 1963), 112
Groves v. John Wunder Co., 286 N.W. 235 (Minn. 1939), 171–3, 198–200, 202–3
Hadley v. Baxendale, 9 Exch. 341 (1854), 18, 41, 210, 211, 243, 248, 250
Harwood v. Avaya, Inc., 2007 WL 2407054 (S.D. Ohio), 193
Haysville U.S.D. No. 261 v. GAF Corp., 666 P.2d 192 (Kan. 1983), 238
Henningsen v. Bloomfield Motors, Inc., 161 A.2d 69 (N.J. 1960), 112
Hill v. Gateway 2000, Inc., 105 F.3d 1147 (7th Cir. 1997), 136
H.P. Droher & Sons v. Toushin, 85 N.W.2d 273 (Minn. 1957), 168
H-W-H Cattle Co. v. Schroeder, 767 F.2d 437 (8th Cir. 1985), 166
Jacob & Youngs v. Kent, 129 N.E. 889 (N.Y. 1921), 10, 22–4, 26, 60, 80, 136, 142, 148, 155, 169, 186–7, 195–200, 202–3
Kangas v. Trust, 441 N.E.2d 1271 (Ill. Ct. App. 1982), 168
Karl v. Bryant Air Conditioning Co., 331 N.W.2d 456 (Mich. 1982), 213 Karno v. Bourbon Burlesque Club, Inc., 931, So. 2d 1111 (La. 2006), 77
KGM Harvesting Co. v. Fresh Network, 42 Cal. Rptr. 2d 286 (Ct. App. 1995), 165
Kham & Nate’s Shoes No. 2, Inc. v. First Bank of Whiting, 908 F.2d 1351 (7th Cir. 1990), 133 Krell v. Henry, 2 K.B. 740 (1903), 130
Laidlaw v. Organ, 15 U.S. (2 Wheat.) 178 (1817), 13, 15
Leavitt v. Dover, 32 A. 156 (N.H. 1892), 108
Lesmeister v. Dilly, 330 N.W.2d 95 (Minn. 1983), 209
Losee v. Buchanan, 51 N.Y. 476 (1873), 106
Lowden v. T-Mobile USA, Inc., 512 F.3d 1213 (9th Cir. 2008), 134
Lucy v. Zehmer, 84 S.E.2d 516 (Va. 1954), 141
M. Ahern Co. v. John Bowen Co., 133 N.E.2d 484 (Mass. 1956), 88 Massaletti v. Fitzroy, 118 N.E. 168 (Mass. 1917), 128
McMaster Univ. v. Wilchar Constr. Ltd., [1971] 3 O.R. 801 (Can.), 94
Merritt v. Reserve Insurance Co., 110 Cal. Rptr. 511 (Ct. App. 1973), 120
Mkt. St. Assocs. Ltd. P’ship v. Frey, 941 F.2d 588 (7th Cir. 1991), 12, 15, 210, 252, 301 Monarco v. Lo Greco, 220 F.2d 737 (Cal. 1950), 16
N.Y. Cent. R.R. Co. v. Lockwood, 84 U.S. (17 Wall.) 357 (1873), 113
Case Index • 307
O.W. Grun Roofing & Constr. Co. v. Cope, 529 S.W.2d 258 (Tex. Civ. App. 1975), 169
Peevyhouse v. Garland Coal & Mining Co., 382 P.2d 109 (Okla. 1962), 22–6, 148–52, 171–3, 200–3
Powers v. Massachusetts Homeopathic Hospital, 109 F. 294 (1st Cir. 1901), 127
Raffles v. Wichelhaus, 2 H & C 906, 159 Eng. Rep. 375, (Ex. 1864), 90 Raineri v. Miles, [1981] A.C. 1050, 1086 (H.L.), 41
Razor v. Hyundai Motor Am., 854 N.E. 2d 607 (Ill. 2006), 136 Register.com, Inc. v. Verio, 356 F.3d 393 (2nd Cir. 2004), 136
Rexnord Corp. v. DeWolff Boberg & Associates, Inc., 286 F.3d 1001 (7th Cir. 2002), 250 Robert Addie & Sons (Collieries), Ltd. v. Dumbreck, [1929] A.C. 358 (H.L.), 127
Rowland v. Christian, 443 P.2d 561 (Cal. 1968), 128
Royal-Globe Insurance Co. v. Craven, 585 N.E.2d 315 (Mass. 1992), 80
Ruxley Electronics & Construction Ltd. v. Forsyth, [1996] 1 A.C. 344 (H.L.), 172
Rylands v. Fletcher, (1868) 3 L.R.E. & I. App. 330 (H.L.), 120
Samson Sales, Inc. v. Honeywell, Inc., 465 N.E.2d 392 (1984), 232
Siegel v. Spear, 138 N.E. 414 (N.Y. 1923), 126
Signal Oil & Gas Co. v. Universal Oil Prods., 572 S.W.2d 320 (Tex. 1978), 213
Silver v. Silver, 280 U.S. 117 (1929), 128
Southcot v. Bennet, (1601) Cro. Eliz. 815, 78 Eng. Rep. 1041 (Q.B.), 122 State v. Irwin, 285 S.E.2d 345 (N.C. Ct. App. 1982), 151
Stepps Invs. Ltd. v. Sec. Capital Corp., [1976] 14 O.R.2d 259 (Can.), 94
Suitt Constr. Co. v. Ripley’s Aquarium, LLC, 108 Fed. Appx. 309 (6th Cir. 2004), 248 Sun Printing & Pub. Ass’n v. Remington Paper & Power Co., 139 N.E. 470 (N.Y.1923), 135
Taylor v. Caldwell, (1863) 3 B. & S. 826, 122 Eng. Rep. 309 (Q.B.), 128, 130
TexPar Energy, Inc. v. Murphy Oil USA, Inc., 45 F.3d 1111 (7th Cir. 1995), 165
Thorne v. Deas, 4 Johns 84 (N.Y. Sup. Ct. 1809), 126–7
Ticketmaster Corp. v. Ticket.com, 2000 U.S. Dist. LEXIS 12987 (C.D. Cal. Aug. 10, 2000), 136 The T.J. Hooper, 60 F.2d 737 (2d Cir. 1932), 118, 125
Tongish v. Thomas, 840 P.2d 471 (Kan. 1992), 10, 136, 165
Transfield Shipping Inc v. Mercator Shipping Inc. the Achilleas, [2009] 1 A.C., 249
Trujillo v. Apple Computer, Inc., 578 F. Supp. 2d 979 (N.D. Ill. 2008), 136
United States v. Carroll Towing, 159 F.2d 169 (2d Cir. 1947), 118
Vaughan v. Menlove, (1837) 3 Bing. (N.C.) 468, 132 Eng. Rep. 490 (C.P.), 120–1
Walker v. Concrete Creations, 2005 WL 2101191 (Del.Com.Pl.), 193
Wilson v. Best Travel Ltd., 1 All E.R. 353 (1993), 41
XCO Int’l v. Pac. Sci. Co, 369 F.3d 998 (7th Cir. 2004), 229