Kenford Co. v. County of Erie | Report - Edubirdie

University:
Boston University
Course:
LAW AM 700 | Intro to American Law
Academic year:

2021
Views:

214

Pages:

1
Author:

Kyuwon J.

Kenford Co. v. County of Erie (I) Court: Supreme Court, Appellate Division, 4th Dept., NY (1985) Facts: In the late 1960s, Erie County (DF) obtained enabling legislation permitting it to finance and construct a sports stadium. Cottrell (PL) obtained options to purchase 700 acres of land which he tried to interest the County in purchasing for the purpose of building a domed stadium. Unsuccessful, he turned to Hofheinz, who suggested the plan the legislature, which they accepted. The County, however, was unable to deliver, as they could not afford the $20M price tag. Issues: Whether an unestablished business may recover lost profits in New York and, if so, whether PL’s proof was adequate. Procedural History: PL sued for $495M in damages. The jury awarded DSI $25.6M, Kenford $18M for lost appreciation in land value, and $6M in out-of-pocket expenses. On appeal, the recoverability of all elements is challenged. Judgement: Affirmed Reversed in favor of the Reasoning: The goal of a damage award is to place PL in the position he would have been absent the breach, no worse but no better. Only such damages as are the natural and probable result of the breach may be recovered. Ordinarily, PL may not recover for a collateral enterprise upon which he might have embarked, had DF not breached the contract. To be recoverable damages must be not merely speculative, possible and imaginary, but they must be reasonably certain. The court adopted the Perma case and its three elements (see outline).

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