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UNITED STATES NAVAL INSTITUTE V. CHARTER COMMUNICATIONS, INC., US Court of Appeals, 2nd Circuit, 1991. 936 F.2d 692

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UNITED STATES NAVAL INSTITUTE V. CHARTER COMMUNICATIONS, INC., US Court of Appeals, 2nd Circuit, 1991. 936 F.2d 692 Powered By Docstoc
					CONTRACTS
UNITED STATES NAVAL INSTITUTE V. CHARTER COMMUNICATIONS, INC., US Court of Appeals, 2nd Circuit, 1991. 936 F.2d 692. History: Case back to US Court of Appeals following remand for fashioning relief in favor of Naval; Naval appeals as judgment failed to award greater profits; Berkley crossappeals from judgment as a whole and such parts of it as awarded moneys to Naval Facts: Naval entered into a licensing agreement w/Berkley in Sept 1984 granting Berkley the exclusive license to publish Red October “not sooner than October 1985”; Berkley shipped early and paperback sales began in Sept 1985 Issue(s): Was there copyright infringement against Naval? No What was Naval’s actual contract loss? Holding: Case dismissed at trial court level; On remand, district court awarded Naval $35,380.50 in damages and $7,760.12 as profits wrongfully received by Berkley; US Court of Appeals reverses the award of profits and affirm the award of damages Analysis: Purpose of damages for breach of contract is to compensate the injured party for the loss cause by breach and these damages are usually measured by the Plaintiff’s actual loss; However, sometimes Defendant’s profits are used to measure damages; breach of contract remedies are compensatory and not punitive; Berkley gets to get their profits b/c they are not being punished; looked at August sales compared to September sales, assuming trend didn’t change; assumed sales would have been the same in August and September if there hadn’t been a breach, even though probably would not have sold the same amount, but gave them the profits they would have had had the paperback not come out; no way to have an exact amount;