Pee-wee Football League Sues City
Focus on business damages
In a lawsuit filed in a mid-sized southern CA city, the president of a pee-wee football league sued the City alleging that they interfered with a contract that the football league had with the local school district. The plaintiff alleges that in 2006 the City pressured the local school district to cancel the football field use contract that the pee-wee league had with the school district. The plaintiff is suing the City for tortuous interference and the school district for breach of contract.
In these types of cases, there are generally two types of damages that economists consider: reliance damages and lost profits.
Reliance damages are the 'damages covering foreseeable loss caused by reliance on the contract'. In a court room setting, calculating these damages involves identifying the items that the party spent as a result of relying on the contract. In essence the idea is to make the injured party in as good a position as he would have been in had the contract not been made.
In this case, the plaintiff purchased a number of items, advertised for participants, hired officials, and in part, help to renovate the districts football playing fields. Additionally they purchased uniforms and food concession items. Upon cancellation of the contract the league was forced to obtain alternative playing fields (at a higher cost) and had to refund about 33% of the enrollment fees due to cancellations.
Reliance damages in this type of case would include these types of expenditures and costs.
What items are needed to prove reliance damages:
Profit and Loss statements for 3 years prior to the cancellation of the contract.
Receipts and bank statements
Interviews of the key members of the organization can also be useful.
lost profits damages
Lost profits are related to the revenue that would have been earned had the event not occurred. In this case, the issue is a little more complicated because the organization was a non-profit organization. In this case, one way to measure the lost profits is to consider the net income that actually flowed to the plaintiff. In this case, the pee-wee league paid the plaintiff about $50,000 a year to run the organization
What items are needed to lost profits damages:
The same as above PLUS (in this case) any pay statements (1099's etc.) that showed what was payed to the plaintiff to run the organization
In a lawsuit filed in a mid-sized southern CA city, the president of a pee-wee football league sued the City alleging that they interfered with a contract that the football league had with the local school district. The plaintiff alleges that in 2006 the City pressured the local school district to cancel the football field use contract that the pee-wee league had with the school district. The plaintiff is suing the City for tortuous interference and the school district for breach of contract.
In these types of cases, there are generally two types of damages that economists consider: reliance damages and lost profits.
Reliance damages are the 'damages covering foreseeable loss caused by reliance on the contract'. In a court room setting, calculating these damages involves identifying the items that the party spent as a result of relying on the contract. In essence the idea is to make the injured party in as good a position as he would have been in had the contract not been made.
In this case, the plaintiff purchased a number of items, advertised for participants, hired officials, and in part, help to renovate the districts football playing fields. Additionally they purchased uniforms and food concession items. Upon cancellation of the contract the league was forced to obtain alternative playing fields (at a higher cost) and had to refund about 33% of the enrollment fees due to cancellations.
Reliance damages in this type of case would include these types of expenditures and costs.
What items are needed to prove reliance damages:
Profit and Loss statements for 3 years prior to the cancellation of the contract.
Receipts and bank statements
Interviews of the key members of the organization can also be useful.
lost profits damages
Lost profits are related to the revenue that would have been earned had the event not occurred. In this case, the issue is a little more complicated because the organization was a non-profit organization. In this case, one way to measure the lost profits is to consider the net income that actually flowed to the plaintiff. In this case, the pee-wee league paid the plaintiff about $50,000 a year to run the organization
What items are needed to lost profits damages:
The same as above PLUS (in this case) any pay statements (1099's etc.) that showed what was payed to the plaintiff to run the organization
Labels: Business damages
posted by The Experts @ 6:05 PM
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