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

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									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;


								
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