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California Attorney's Guide to Damages

Learn how to quickly evaluate a case and determine the appropriate range of damages in actions across many practice areas. Includes discussion of the taxability of settlements and judgments.

Learn how to quickly evaluate a case and determine the appropriate range of damages in actions across many practice areas. Includes discussion of the taxability of settlements and judgments.

  • Contract
  • Real estate seller/buyer
  • Labor
  • Landlord/tenant
  • Injury to property
  • Intellectual property infringement and misappropriation
  • Tax aspects
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Learn how to quickly evaluate a case and determine the appropriate range of damages in actions across many practice areas. Includes discussion of the taxability of settlements and judgments.

  • Contract
  • Real estate seller/buyer
  • Labor
  • Landlord/tenant
  • Injury to property
  • Intellectual property infringement and misappropriation
  • Tax aspects

Selected Developments

December 2018 Update

The current update includes changes that reflect recent developments in case law, legislation, court rules, and jury instructions. Summarized below are some of the more important developments included in this update since publication of the 2017 update.

Contract

Pleading damages. A default judgment in plaintiff’s favor could not exceed $25,000 when the complaint alleged damages “estimated to exceed $25,000” but did not allege any specific damages amount. Airs Aromatics, LLC v CBL Data Recovery Technols., Inc. (2108) 23 CA5th 1013. See §1.13.

Attorney fees. In California-American Water Co. v Marina Coast Water Dist. (2017) 18 CA5th 571, CC §1717 attorney fees were awarded to prevailing plaintiffs in an action to void the parties’ contracts; the fee clauses were enforced if the contracts, though void, were not illegal. See §1.23.

For a contract case involving multiple parties, in which the court found there was more than one prevailing party entitled to attorney fees, see Burkhalter Kessler Clement & George LLP v Hamilton (2018) 19 CA5th 38 in §1.26.

In Shapira v Lifetech Resources, LLC (2018) 22 CA5th 429, plaintiff’s voluntary dismissal before submitting written closing arguments in a bench trial triggered CC §1717(b)(2) and cut off the defendant’s right to attorney fees. See §1.26.

Brandt Fees. When an award of Brandt fees was remanded for redetermination, remand of the punitive damages award was also required. See Pulte Home Corp. v American Safety Indem. Co. (2017) 14 CA5th 1086 in §1.34.

Liquidated Damages. For a case discussing liquidated damages, see Vitatech Int’l, Inc. v Sporn (2017) 16 CA5th 796 in §1.42.

Real Estate Buyer/Seller

Specific Performance. For a recent case discussing a tenant’s entitlement to offsets for rent in a judgment for specific performance of an option to purchase, see Petrolink, Inc. v Lantel Enters. (2018) 21 CA5th 375 in §2.7.

Labor

Preemption. The Ninth Circuit recently articulated a two-part test to determine whether a state law employment claim is preempted by the Railway Labor Act or §301 of the Labor Management Relations Act: the state claim is preempted if it arises entirely from a collective bargaining agreement or requires construction of a collective bargaining agreement. See Alaska Airlines, Inc. v Schurke (9th Cir 2018) 898 F3d 904 in §§3.2, 3.33.

In Light v Department of Parks & Recreation (2017) 14 CA5th 75, the court of appeal held that the Workers’ Compensation Act (Lab C §§3200–6149) does not preempt a claim for intentional infliction of emotional distress because an employer’s unlawful discrimination is not a normal incident of employment. See §3.97.

Landlord/Tenant

Back Rent. An unlawful detainer judgment did not preclude a landlord from filing a separate civil action for collection of back-due rent that accrued in months other than the month for which damages were awarded in the unlawful detainer action. See Hong Sang Mkt., Inc. v Peng (2018) 20 CA5th 474 in §4.86.

Constructive eviction. In Multani v Knight (2018) 23 CA5th 837, the court held that a sewer backup that occurred while a commercial unlawful detainer action was pending did not constitute a constructive eviction because the tenant’s possession had already become unlawful. See §4.14.

Retaliatory eviction. Effective January 1, 2018, retaliatory conduct prohibited by CC §1942.5 includes reporting or threatening to report a tenant (or the tenant’s known associates) to immigration authorities. See CC §1942.5(c) in §4.36.

For a retaliatory eviction case in which a large punitive damages award was upheld and not subject to the CC §1942.5 cap, see Fernandes v Singh (2017) 16 CA5th 932 in §4.36.

Liquidated Damages. A late fee provision in a rental agreement is unenforceable when the landlord made no attempt to approximate actual losses caused by late payment of rent. See Del Monte Props. & Invs., Inc. v Dolan (2018) 26 CA5th Supp 20 in §4.106.

Injury to Property

Construction Defects. The California Supreme Court held in McMillin Albany LLC v Superior Court (2018) 4 C5th 241 that the Right to Repair Act (CC §§895–945.5), which imposes a prelitigation notice and cure procedure, is the virtually exclusive remedy for construction defect claims for pure economic losses and for actual property damage. See §5.10.

Nuisance immunity. For a case involving a statutory immunity defense under CC §3482 (activity done under authority of statute cannot be deemed nuisance), see Williams v Moulton Niguel Water Dist. (2018) 22 CA5th 1198 in §5.6A.

Consent to private nuisance. For a discussion of the circumstances in which a prior owner’s consent is a defense under Mangini and Beck to the current owner’s claim for continuing nuisance, see Otay Land Co., LLC v U.E. Ltd. (2017) 15 CA5th 806 in §5.48.

Fire cases. Fire suppression and investigation costs are recoverable under Health & S C §13009, and attorney fees may be recoverable as private attorney general fees under CCP §1021.5. See, e.g., Heron Bay Homeowners Assn. v City of San Leandro (2018) 19 CA5th 376 in §5.54. Punitive damages were not supported in Pacific Gas & Elec. Co. v Superior Court (Butte Fire Cases) (2018) 24 CA5th 1150, in which the court of appeal held that an unsuccessful risk management policy does not necessarily reflect a conscious and willful company decision to ignore or disregard a risk. See §5.38.

Intellectual Property Infringement and Misappropriation

Extraterritoriality. For in-depth discussion of how courts decide if U.S. intellectual property statutes apply to an alleged infringement, see WesternGeco LLC v ION Geophysical Corp. (2018) ___ US ___, 138 S Ct 2129, in which the United States Supreme Court held that when a competitor manufactured components for an infringing product in the United States and then shipped them to companies abroad who combined the components to create an infringing product, the infringement occurred within the United States and damages for lost profits were domestic, not extraterritorial. See §6.2.

Patent infringement. In Halo Electronics, Inc. v Pulse Electronics, Inc. (2016) ___ US ___, 136 S Ct 1923, the United States Supreme Court held that a finding of willful infringement does not require the trial court to award enhanced damages under 35 USC §284. See §6.13.

Copyright infringement. For a case discussing the burden on the defendant to prove what percentage of its profits was not attributable to infringement, see Williams v Gaye (9th Cir 2018) 895 F3d 1106 in §6.16.

Tax Aspects

The author of chapter 7, Robert W. Wood, analyzes the impact of the Tax Cuts and Jobs Act (Pub L 115–97, 131 Stat 2054), which took effect on December 22, 2017. Significant changes include

Patent recoveries. Patents, inventions, models, and designs were added to the list of assets that are not capital assets in the hands of their creators. Therefore, despite some exceptions, counsel should generally assume that patent recoveries are ordinary income. IRC §1221(a)(3). See §7.37.

Contingent attorney fees. The tax code provisions allowing for miscellaneous itemized deductions (see IRC §§67–68) are suspended from January 1, 2018, to December 31, 2025. IRC §§67(g), 68(f). Contingent attorney fees, which were generally categorized as miscellaneous itemized deductions under IRC §67(b), can no longer be deducted unless there is an above-the-line deduction available when calculating adjusted gross income. See §7.49.

Attorney fees in discrimination cases. Attorney fees related to a settlement or payout related to sexual harassment or sexual abuse can no longer be taken as a business deduction if the settlement or payment is subject to a nondisclosure agreement, and if the fees were paid or incurred after December 22, 2017. It is unclear if this provision, intended to punish defendants, also applies to the plaintiff’s legal fees. Most commentators believe that this was not the intent and, at the time of this update, lawmakers intended to introduce a technical corrections bill. IRC §162(q). See §7.49.

Deductions that are permissible in determining adjusted gross income now include attorney’s fees when paid by, or on behalf of, the taxpayer in connection with whistleblower awards made in actions brought under specified federal securities and commodity exchange laws or state false claims acts. IRC §62(a)(21). See §7.49B.

About the Authors

Robert M. Cassel (chapter 3), B.A. 1956, University of Michigan; J.D. 1961, University of California, Berkeley, School of Law. Mr. Cassel practices in the Law Offices of Robert M. Cassel, Mill Valley, and has specialized exclusively in management labor and employment law since 1962. He has served on the Management Advisory Panel of the National Labor Relations Board Advisory Committee on Agency Procedure, and has been Program Chairman of the American Bar Association Subcommittee on Equal Employment Opportunity. Mr. Cassel has lectured and written extensively on labor law and is a contributing editor of CEB’s California Business Law Reporter.

David Dimitruk (chapter 2), B.A. 1973, California State University, Fullerton; J.D. 1976, Western State University School of Law. Mr. Dimitruk is a sole practitioner in Irvine, specializing in real estate transactions and litigation. He has lectured for CEB on the subject of real property remedies and has authored chapter 3 of California Real Property Remedies and Damages (2d ed Cal CEB), on which a portion of chapter 2 in this book is based.

Jane L. O’Hara Gamp (chapter 2), B.A., Santa Clara University; J.D. 1985, Santa Clara University. Ms. Gamp is currently the Administrative Dean at San Francisco Law School. Formerly, she specialized in professional liability defense litigation. She is also both a mediator and an arbitrator with the American Arbitration Association for personal injury, professional liability, real property, contract, and employment disputes. She has authored chapter 4 of California Real Property Remedies and Damages (2d ed Cal CEB), on which a portion of chapter 2 in this book is based.

Victor B. Harris (chapter 1), B.S. 1968, University of California, Berkeley; J.D. 1972, Harvard Law School. Mr. Harris practices law in the Law Offices of Victor Harris, in San Rafael, maintaining a litigation and transactional practice focusing on commercial finance, including creditor’s rights, equipment leasing, asset-based lending, and secured transactions. He is the Secretary-Treasurer of the United Association of Equipment Leasing and is a member of its Board of Trustees.

Leo E. Lundberg, Jr. (chapter 6), B.S. (cum laude) 1978, California Lutheran University, Thousand Oaks; J.D. (cum laude) 1986, Loyola Law School, Los Angeles. Mr. Lundberg practices law at The Soni Law Firm in Pasadena, maintaining a practice in intellectual property litigation, insurance coverage litigation representing insureds, and general business litigation.

Stephen L. R. McNichols (chapter 5), B.A. 1965, Pomona College; J.D. 1968, University of California, Berkeley, School of Law. A partner with McNichols, Randick, O’Dea & Tooliatos in Pleasanton, Mr. McNichols specializes in real property and business litigation. His practice involves a wide variety of legal work, including negotiating, drafting, and litigating business and real estate contracts, and litigating and resolving complex commercial, real estate, land use, construction, landslide and subsidence, business tort, intellectual property, partnership, and corporate disputes. He has authored chapter 11 of California Real Property Remedies and Damages (2d ed Cal CEB), on which a portion of chapter 5 in this book is based. He is also a frequent contributor to the CEB Real Property Law Reporter. See, in particular, Revisiting Mangini: Should the Burden of Proof in Contamination-Nuisance Cases Be Re-examined?, 25 Real Prop L Rep 3 (Apr. 2002).

Myron Moskovitz (chapter 4), B.S. 1960, University of California, Berkeley; J.D. 1964, University of California, Berkeley, School of Law. Mr. Moskovitz specializes in appellate practice and landlord-tenant law and is currently Professor of Law at Golden Gate University, San Francisco. He was the Chief Attorney for the National Housing Law Project and Chairman of the California Commission on Housing and Community Development. He has contributed to California Eviction Defense Manual (Cal CEB), of which he is one of the original authors, and California Landlord-Tenant Practice (Cal CEB), on which a portion of chapter 4 in this book was based.

Surjit P. Soni (chapter 6), B.S. 1974, University of Toronto; J.D. 1984, University of Miami. Mr. Soni is the principal of the Soni Law Firm, Pasadena, specializing in intellectual property litigation. Some of his major cases include Atlantic Mut. Ins. Co. v J. Lamb, Inc. (2002) 100 CA4th 1017, Dreamwerks Prod. Group, Inc. v SKG Studio (9th Cir 1998) 142 F3d 1127, and Refac Intern., Ltd. v Hitachi, Ltd. (Fed Cir 1990) 921 F2d 1247. He has spoken and written extensively, contributing to, among other books, Competitive Business Practices (Cal CEB) and Civil Procedure Before Trial (3d ed Cal CEB).

C. Darrell Sooy (chapter 2), B.S. 1966, University of California, Berkeley; J.D. 1969, University of California, Hastings College of the Law. Mr. Sooy is the senior managing director of Tobin & Tobin, San Francisco, emphasizing financial institutions, real property, and secured transactions. Some of his major cases include Lazzareschi Inv. Co. v San Francisco Fed. Sav. & Loan Ass’n (1971) 22 CA3d 303, and Fox & Caskardon Fin. Corp. v San Francisco Fed. Sav. & Loan Ass’n (1975) 52 CA3d 484. He has lectured extensively and contributed to California Real Property Sales Transactions (Cal CEB) and California Real Estate Finance Practice (Cal CEB).

Robert W. Wood (chapter 7), A.B. 1976, Humboldt State University; J.D. 1979, University of Chicago. Mr. Wood, of the California, New York, District of Columbia, Montana, Wyoming, and Arizona Bars, practices tax law in San Francisco with Robert W. Wood Professional Corporation. He is certified as a Specialist in Taxation, former Chair of the Taxation Law Specialization Commission, and former Vice Chair of the Executive Committee of the California State Bar Tax Section. He is also qualified as a Solicitor in England and Wales. A central part of Mr. Wood’s national and international practice is advising lawyers, accountants, and litigants concerning the tax aspects of litigation payments and recoveries, and appropriate tax planning and documentation of settlement agreements. He also regularly represents taxpayers before the IRS and the courts. In addition to 28 other tax books, he is the author of Taxation of Damage Awards and Settlement Payments (2d ed 1998) (2001 supplement), published by the Tax Institute, as well as hundreds of articles dealing with the tax treatment of litigation recoveries. He speaks nationally on this topic to accountants, lawyers, and businesspeople.

About the 2018 Update Authors

Victor B. Harris (chapter 1), B.S. 1968, University of California, Berkeley; J.D. 1972, Harvard Law School. Mr. Harris, who recently retired from the private practice of law, maintained a litigation and transactional practice focusing on commercial finance, including creditors’ rights, equipment leasing, asset-based lending, and secured transactions. He served as the President of the United Association of Equipment Leasing during 2006 and as a member of its Board of Directors for several years.

Leo E. Lundberg, Jr. (chapter 6), B.S. (cum laude) 1978, California Lutheran University, Thousand Oaks; J.D. (cum laude) 1986, Loyola Law School, Los Angeles. Mr. Lundberg practices law at The Soni Law Firm in Pasadena, maintaining a practice in intellectual property litigation, insurance coverage litigation representing insureds, and general business litigation.

C. Darrell Sooy (chapter 2), B.S. 1966, University of California, Berkeley; J.D. 1969, University of California, Hastings College of the Law. Mr. Sooy is a member of the board of directors at Weintraub Genshlea Chediak Tobin & Tobin, San Francisco. His practice emphasizes financial institutions, real property, and secured transactions. Some of his major cases include Lazzareschi Inv. Co. v San Francisco Fed. Sav. & Loan Ass’n (1971) 22 CA3d 303 and Fox & Caskardon Fin. Corp. v San Francisco Fed. Sav. & Loan Ass’n (1975) 52 CA3d 484. He has lectured extensively and contributed to California Real Property Sales Transactions (Cal CEB) and California Real Estate Finance Practice (Cal CEB).

Randy Sullivan (chapter 5), B.A. 1999, University of California, Santa Barbara; J.D. 2003, Santa Clara University School of Law. Mr. Sullivan is a partner at Patton Martin & Sullivan LLP in Pleasanton, where he focuses on civil litigation representing plaintiffs and defendants in primarily business and real estate disputes. He has successfully litigated a number of cases through trial, arbitration, and mediation and is experienced in complex litigation and all aspects of state and federal trials. Mr. Sullivan’s business and real estate litigation experience includes complex litigation, representation of directors and officers, nonprofit corporate disputes, religion and law disputes, commercial lease disputes, real property buyer-seller disputes, premises liability claims, mortgage broker litigation, representation of real estate brokers and agents, commercial foreclosure, trade secret litigation, employment litigation, and construction defect litigation.

Robert W. Wood (chapter 7), A.B. 1976, Humboldt State University; J.D. 1979, University of Chicago. Mr. Wood, of the California, New York, District of Columbia, Montana, Wyoming, and Arizona Bars, practices tax law in San Francisco with Wood & Porter, A Professional Corporation. He is a Certified Tax Specialist and a former Chair of the Taxation Law Specialization Commission of the California Board of Legal Specialization, and former Vice Chair of the Executive Committee of the California State Bar Tax Section. He is also qualified as a solicitor in England and Wales. A central part of Mr. Wood’s national and international practice is advising lawyers, accountants, and litigants concerning the tax aspects of litigation payments and recoveries, and appropriate tax planning and documentation of settlement agreements. He also regularly represents taxpayers before the IRS and the courts. In addition to 28 other tax books, he is the author of Taxation of Damage Awards and Settlement Payments (2d ed 1998) (2001 supplement), published by the Tax Institute, as well as hundreds of articles dealing with the tax treatment of litigation recoveries. He speaks nationally on this topic to accountants, lawyers, and businesspeople.

1

Contract

Victor B. Harris

  • I.  INTRODUCTION  1.1
  • II.  ANALYSIS OF CONTRACT DAMAGES PROBLEMS
    • A.  Negotiation and Drafting Stage  1.2
      • 1.  Improving Amount of Recovery  1.3
      • 2.  Limiting Amount of Recovery  1.4
      • 3.  Venue and Arbitration Clauses  1.5
    • B.  Handling Potential or Actual Breach Situations Before Litigation  1.6
      • 1.  When Performance Will Continue
        • a.  Notice of Breach and Demand for Performance  1.7
        • b.  Protection of Security Interests  1.8
        • c.  Avoidance of Future Breach  1.9
        • d.  Avoidance of Aggravation of Damages  1.10
        • e.  Documentation  1.11
      • 2.  When Performance Will Not Continue
        • a.  Notice of Claim and Protection of Security Rights  1.12
        • b.  Analysis and Proof of Client’s Recoverable Damages  1.13
      • 3.  Alternative or Supplemental Remedies  1.14
      • 4.  Alternative or Supplemental Causes of Action  1.15
    • C.  Litigation Checklist  1.16
  • III.  POSSIBLE ITEMS OF RECOVERY
    • A.  Measure of Damages
      • 1.  Controlling Civil Code Provisions  1.17
      • 2.  Rule of Hadley v Baxendale: General and Special Damages  1.18
    • B.  Specific Items Recoverable
      • 1.  Loss of Profits and Benefits  1.19
      • 2.  Interest  1.20
      • 3.  Attorney Fees
        • a.  General Rule  1.21
        • b.  Right to Reciprocal Recovery of Attorney Fees (CC §1717)  1.22
          • (1)  Examples of Recovery Under CC §1717  1.23
          • (2)  Recovery of Attorney Fees Under CC §1717 by Strangers to Contract  1.24
          • (3)  Recovery of Attorney Fees by Attorney Litigants and “In-House” Counsel Under CC §1717  1.25
          • (4)  Determination of Prevailing Party Under CC §1717  1.26
          • (5)  Limits of CC §1717  1.27
          • (6)  Award of CC §1717 Attorney Fees in Arbitration  1.28
          • (7)  Procedure for Recovery Under CC §1717  1.29
        • c.  Recovery Under Statutes Other Than CC §1717  1.30
        • d.  Recovery for Bad Faith Breach of Contract and Breach of Fiduciary Duty  1.31
        • e.  Recovery Under “Tort of Another” or “Third Party Tort” Doctrine  1.32
      • 4.  Expert Witness Fees  1.33
      • 5.  Exemplary and Nominal Damages
        • a.  General Rule  1.34
        • b.  Exemplary Damages May Be Available in Cases Involving Breach of Insurance Contract or Existence of Independent Tort  1.35
        • c.  Exemplary Damages Not Available for Bad Faith Denial of Contract’s Existence  1.36
        • d.  Proof of Defendant’s Financial Condition  1.37
      • 6.  Mental Distress or Physical Suffering  1.38
      • 7.  Loss of Goodwill  1.39
  • IV.  LIMITATIONS ON AMOUNT OF DAMAGES
    • A.  Uncertain and Speculative Damages  1.40
    • B.  Mitigation of Damages  1.41
    • C.  Liquidated Damages
      • 1.  Validity and Scope  1.42
      • 2.  In Public Contracts  1.43
      • 3.  Liquidated Damages as “Processing Charges” and “Late Fees”  1.44
    • D.  Disclaimer of Warranties  1.45
    • E.  Disclaimer and Limitation of Damages  1.46
  • V.  SPECIFIC BREACH SITUATIONS; RULES AND APPROACHES TO CONTRACT DAMAGES
    • A.  Total Failure to Perform  1.47
    • B.  Partial Performance  1.48
    • C.  Delay in Performance  1.49
    • D.  Defect in Performance  1.50
    • E.  Prevention or Obstruction of Performance  1.51
    • F.  Failure to Pay Money  1.52
    • G.  Breach of Employment, Service, or Agency Contracts  1.53
      • 1.  Foley v Interactive Data Corp.  1.54
      • 2.  Cases After Foley v Interactive Data Corp.  1.55
    • H.  Damages for Unauthorized Services  1.56
    • I.  Breach of Insurance Contracts
      • 1.  Breach of Covenant of Good Faith and Fair Dealing  1.57
      • 2.  Examples  1.58
    • J.  Breach of Contracts to Negotiate Agreements  1.59

2

Real Estate Seller/Buyer

David Dimitruk

Jane L. O’Hara Gamp

C. Darrell Sooy

  • I.  INTRODUCTION  2.1
  • II.  ESSENTIALS OF DAMAGES ACTION
    • A.  Nature of Action; Jurisdiction; Venue
      • 1.  Legal or Equitable Nature of Action  2.2
      • 2.  Jurisdiction  2.3
      • 3.  Venue  2.4
    • B.  Establishing Breach  2.5
    • C.  Inadequacy of Remedies  2.6
    • D.  Selection of Remedies  2.7
  • III.  SELLER’S BREACH
    • A.  Buyer’s First Steps After Seller’s Breach  2.8
    • B.  Buyer’s Damages
      • 1.  General Damages Under CC §3306  2.9
      • 2.  Damages for Breach Other Than Failure to Convey Title  2.10
      • 3.  Prejudgment Interest  2.11
      • 4.  Attorney Fees  2.12
      • 5.  Punitive Damages; Emotional Distress  2.13
    • C.  Seller’s Defenses  2.14
  • IV.  BUYER’S BREACH
    • A.  Purchase Agreement and Installment Land Contract Distinguished  2.15
    • B.  Breach of Purchase and Sale Agreement  2.16
      • 1.  Seller’s Remedies
        • a.  First Steps After Breach  2.17
        • b.  Disposition of Deposit
          • (1)  General Considerations  2.18
          • (2)  No Liquidated Damages Clause
            • (a)  Failure of Condition  2.19
            • (b)  Buyer’s Breach  2.20
          • (3)  Liquidated Damages
            • (a)  Agreements Executed Before July 1, 1978  2.21
            • (b)  Agreements Executed on or After July 1, 1978  2.22
              • (i)  Residential Real Property  2.23
              • (ii)  Nonresidential Real Property  2.24
        • c.  Seller’s Damages
          • (1)  General Damages Under CC §3307  2.25
          • (2)  Effect of Market  2.26
          • (3)  Discounting Price to Cash Equivalent  2.27
          • (4)  Proof of Damages  2.28
          • (5)  Special Damages
            • (a)  Resale Expenses  2.29
            • (b)  Broker’s Commission  2.30
            • (c)  Other Expenses  2.31
      • 2.  Buyer’s Defenses and Offsets
        • a.  Antideficiency Bar  2.32
        • b.  Other Defenses and Offsets  2.33
  • V.  ELEMENTS OF FRAUD  2.34
    • A.  Damages When Buyer Is Victim
      • 1.  Three Rules  2.35
      • 2.  Measure of Damages Compared  2.36
      • 3.  Actual Value Means Market Value
        • a.  Proving Market Value  2.37
        • b.  Use of Opinion Testimony  2.38
        • c.  Methods of Establishing Value  2.39
      • 4.  Additional Damages  2.40
        • a.  Labor  2.41
        • b.  Repairs and Improvements  2.42
        • c.  Expenses  2.43
        • d.  Lost Profits  2.44
        • e.  Personal Injuries and Emotional Distress  2.45
        • f.  Interest  2.46
        • g.  Punitive Damages  2.47
        • h.  Attorney Fees  2.48
      • 5.  Fraud by Fiduciaries  2.49
      • 6.  Damages Versus Equitable Remedies  2.50
    • B.  Damages When Seller Is Victim
      • 1.  Same Remedies and Defenses  2.51
      • 2.  Special Lost Profits Rule  2.52
      • 3.  Statutory Protection for Sellers of Residential Real Property  2.53
    • C.  LITIGATION CONSIDERATIONS IN FRAUD ACTIONS
      • 1.  Setoff  2.54
      • 2.  Mitigation  2.55
      • 3.  Rents  2.56
      • 4.  Selling Property; Involuntary Foreclosure  2.57
      • 5.  Contract Performance  2.58
      • 6.  Consumer Recovery Account  2.59
  • VI.  INSTALLMENT LAND SALE CONTRACTS  2.60

3

Labor

Robert M. Cassel

Barbara A. Lawless

  • I.  ACTIONS UNDER FEDERAL STATUTES
    • A.  Labor Management Relations Act of 1947
      • 1.  Purpose and Structure  3.1
      • 2.  Federal Preemption and Jurisdiction  3.2
      • 3.  Unfair Labor Practices  3.3
      • 4.  Procedure  3.4
      • 5.  Awards to Employees
        • a.  Partial Shutdown to “Chill Unionism”  3.5
        • b.  Discrimination by Employer for Union Activity
          • (1)  Restoration of Position and Back Pay  3.6
          • (2)  What Constitutes Back Pay
            • (a)  Inclusions  3.7
            • (b)  Exclusions  3.8
            • (c)  Reductions  3.9
            • (d)  Period for Which Allowed  3.10
            • (e)  Burden of Proof  3.11
            • (f)  NLRB Rules on Back Pay  3.12
          • (3)  Back Pay Calculated on Quarterly Basis  3.13
          • (4)  Back Pay Under IRCA  3.13A
          • (5)  Successor Employer  3.14
        • c.  Employer’s Refusal to Bargain  3.15
        • d.  Employer Domination of Union  3.16
        • e.  “Runaway Shops”  3.17
        • f.  Unlawful Unilateral Activity  3.18
      • 6.  Employer and Union Liability  3.19
      • 7.  Awards to Employers
        • a.  Union’s Refusal to Bargain  3.20
        • b.  Damage Actions Under §303 of LMRA  3.21
        • c.  Actions for Breach of Collective Bargaining Agreement
          • (1)  When Federal Law Applies  3.22
          • (2)  Measure and Proof of Damages  3.23
    • B.  Labor-Management Reporting and Disclosure Act of 1959  3.24
      • 1.  Compensatory Damages  3.25
      • 2.  Attorney Fees  3.26
      • 3.  Punitive Damages  3.27
      • 4.  Elections  3.28
      • 5.  Cause of Action Against Employer  3.29
    • C.  Rehabilitation Act of 1973  3.30
    • D.  Americans with Disabilities Act of 1990  3.31
    • E.  Railway Labor Act  3.32
      • 1.  Major and Minor Disputes  3.33
      • 2.  Back Pay  3.34
      • 3.  Attorney Fees  3.35
    • F.  Sherman and Clayton Antitrust Acts  3.36
      • 1.  Examples  3.37
      • 2.  Employers Exempt  3.38
    • G.  Fair Labor Standards Act of 1938  3.39
      • 1.  Exemptions  3.40
      • 2.  Remedies  3.41
      • 3.  Defenses  3.42
      • 4.  Gender Discrimination  3.43
      • 5.  Examples  3.44
      • 6.  Statute of Limitations  3.45
    • H.  Age Discrimination in Employment Act  3.46
    • I.  Veteran’s Reemployment Rights  3.47
    • J.  Title VII of Civil Rights Act of 1964
      • 1.  Prohibition of Discrimination in Employment  3.48
      • 2.  Back Pay Awards  3.49
        • a.  Back Pay Formula  3.50
        • b.  Back Pay Defined  3.51
        • c.  Bona Fide Offers of Employment  3.52
        • d.  Duplicate Pay  3.53
        • e.  Front Pay  3.54
        • f.  Mental Distress Damages  3.55
        • g.  Prejudgment Interest  3.56
        • h.  Good Faith  3.57
        • i.  Equivalent Employment  3.58
        • j.  Unemployment Benefits  3.59
      • 3.  Seniority  3.60
      • 4.  Exemplary Damages  3.61
      • 5.  Attorney Fees  3.62
      • 6.  Civil Rights Act of 1991  3.63
      • 7.  Civil Rights Acts of 1866 and 1871  3.64
    • K.  Employee Retirement Income Security Act  3.65
      • 1.  Preemption of State Law  3.66
      • 2.  Coverage  3.67
      • 3.  Reporting and Disclosure  3.68
      • 4.  Damages  3.69
      • 5.  Remedies  3.70
      • 6.  Attorney Fees  3.71
      • 7.  Punitive Damages  3.72
      • 8.  Measure of Damages  3.73
      • 9.  Breach by Fiduciary  3.74
    • L.  Walsh-Healey Act  3.75
    • M.  Davis-Bacon Act  3.76
    • N.  Federal Employee Protections
      • 1.  Federal Service Labor Management Relations Act  3.77
        • a.  Employees’ Grievances  3.78
        • b.  Back Pay and Attorney Fees  3.79
      • 2.  First Amendment Rights and Political Activity  3.80
      • 3.  Privacy  3.81
  • II.  ACTIONS UNDER CALIFORNIA STATUTES
    • A.  Labor-Management Relations  3.82
    • B.  Agricultural Labor Relations Act  3.83
    • C.  Restraint of Trade Under Cartwright Act  3.84
    • D.  Use of State Funds for Anti-Union Activities  3.84A
    • E.  Timely Payment of Wages  3.85
      • 1.  Collective Bargaining Agreements  3.86
      • 2.  Wage Periods  3.87
      • 3.  Vacation Benefits  3.88
      • 4.  Meal and Rest Periods  3.88A
      • 5.  Berman Hearing  3.89
      • 6.  Enforcement  3.90
      • 7.  Labor Code Private Attorneys General Act of 2004  3.90A
    • F.  Indemnity for Work-Related Expenses or Losses  3.91
    • G.  Illegal Termination of Employment  3.92
      • 1.  Statutory Wrongful Termination Claims  3.93
      • 2.  Public Employee Termination  3.94
      • 3.  Damages for Wrongful Termination
        • a.  Contract Damages  3.95
        • b.  Tort Damages  3.96
      • 4.  Exhaustion of Administrative Remedies  3.97
      • 5.  Additional Damages Claims in Wrongful Termination Cases  3.98
      • 6.  Privacy Rights  3.99
    • H.  Equal Pay, Minimum Wage, and Overtime Pay Provisions  3.100
    • I.  Miscellaneous Statutes
      • 1.  Solicitation of Employees by Misrepresentation  3.101
      • 2.  Misrepresentation Concerning Former Employee  3.102
      • 3.  Interference With Employees’ Political Activities  3.103
      • 4.  Commission Contracts by Out-of-State Employers  3.104
      • 5.  Fair Employment and Housing Act Damages  3.105
  • III.  DAMAGE AWARDS IN ARBITRATION UNDER COLLECTIVE BARGAINING AGREEMENTS
    • A.  Arbitration Favored by Courts  3.106
    • B.  Computation of Damages  3.107
    • C.  Union or Employee Grievances  3.108
    • D.  Employer Grievance: Violation of Express or Implied No-Strike Commitment  3.109

4

Landlord/Tenant

Myron Moskovitz

Diana D. Sam

  • I.  SCOPE OF CHAPTER  4.1
  • II.  AGREEMENT TO EXECUTE LEASE
    • A.  Prospective Landlord’s Breach
      • 1.  Measure of Damages
        • a.  General Damages  4.2
        • b.  Special Damages  4.3
        • c.  Attorney Fees  4.4
        • d.  Exemplary Damages  4.5
        • e.  Interest  4.6
      • 2.  Burden of Proof  4.7
      • 3.  Statute of Limitations  4.8
    • B.  Prospective Tenant’s Breach  4.9
  • III.  LANDLORD’S BREACH
    • A.  Measure of Damages for Breach of Duty to Deliver Possession
      • 1.  General Damages  4.10
      • 2.  Proof of Rental Value  4.11
      • 3.  Special Damages  4.12
      • 4.  Attorney Fees; Interest; Exemplary Damages  4.13
    • B.  Breach of Covenant of Quiet Enjoyment
      • 1.  What Constitutes Breach  4.14
      • 2.  Measure of Damages
        • a.  General Damages
          • (1)  Actual or Constructive Eviction  4.15
          • (2)  Interruption of Tenant’s Beneficial Enjoyment  4.16
        • b.  Special Damages  4.17
        • c.  Attorney Fees and Interest  4.18
        • d.  Exemplary Damages  4.19
      • 3.  Breach of Quiet Enjoyment as Tort  4.20
      • 4.  Statute of Limitations  4.21
    • C.  Forcible Entry or Detainer
      • 1.  Nature of Action  4.22
      • 2.  Measure of Damages
        • a.  General Damages  4.23
        • b.  Special Damages  4.24
        • c.  Exemplary Damages  4.25
        • d.  Attorney Fees; Interest; Nominal Damages  4.26
      • 3.  Statute of Limitations  4.27
    • D.  Breach of Lease Covenants
      • 1.  Award of General and Special Damages  4.28
      • 2.  Covenant Against Competition  4.29
      • 3.  Covenant to Repair  4.30
      • 4.  Covenant to Build  4.31
      • 5.  Covenant to Pay for Improvements  4.32
      • 6.  Attorney Fees; Exemplary Damages; Interest  4.33
      • 7.  Landlord’s Defenses  4.34
    • E.  Breach of Statutory Duty to Repair
      • 1.  Civil Code §§1941–1942  4.35
      • 2.  Retaliatory Eviction  4.36
      • 3.  Housing Codes  4.37
    • F.  Breach of Warranty of Habitability
      • 1.  Availability of Damages  4.38
      • 2.  Statutory Damages; Abatement  4.39
      • 3.  General Damages
        • a.  Difference in Value or Percentage Reduction  4.40
        • b.  Discomfort and Annoyance  4.41
      • 4.  Special Damages  4.42
      • 5.  Punitive Damages  4.43
      • 6.  Costs and Attorney Fees  4.44
    • G.  Disconnecting Utility Services  4.45
    • H.  Wrongful Withholding of Tenant’s Personal Property
      • 1.  Tenant’s Remedies  4.46
      • 2.  Statute of Limitations  4.47
    • I.  Landlord’s Violation of Local Rent Control Ordinance
      • 1.  Damages for Rent Overcharges  4.48
      • 2.  Damages for Unlawful Evictions  4.49
      • 3.  Attorney Fees  4.50
      • 4.  Liability of New Owner  4.51
    • J.  Security Deposits
      • 1.  In General  4.52
      • 2.  Landlord’s or Landlord Successor’s Retention of Deposit  4.53
      • 3.  Attorney Fees and Interest  4.54
      • 4.  Statute of Limitations  4.55
  • IV.  TENANT’S BREACH
    • A.  Use of Property for Illegal Purposes
      • 1.  Damages  4.56
      • 2.  Statute of Limitations  4.57
    • B.  Use for Other Than Intended Purpose
      • 1.  Obligation and Damages  4.58
      • 2.  Statute of Limitations  4.59
    • C.  Waste
      • 1.  Damages  4.60
      • 2.  Statute of Limitations  4.61
    • D.  Breach of Statutory Duty to Repair  4.62
    • E.  Breach of Lease Covenants
      • 1.  Damages for Breach  4.63
      • 2.  Statute of Limitations  4.64
      • 3.  Rent Covenant
        • a.  Obligation and Damages  4.65
        • b.  Interest  4.66
      • 4.  Covenant to Remain in Business  4.67
      • 5.  Covenant to Improve  4.68
      • 6.  Covenant to Repair  4.69
      • 7.  Covenant Against Assignment or Subletting  4.70
      • 8.  Covenant to Surrender  4.71
      • 9.  Covenant to Surrender in as Good Condition as Received  4.72
      • 10.  Covenant to Pay Taxes  4.73
      • 11.  Covenant to Insure  4.74
    • F.  Wrongful Removal of Fixtures
      • 1.  General Damages  4.75
      • 2.  Exemplary Damages  4.76
      • 3.  Statute of Limitations  4.77
    • G.  Termination for Tenant’s Breach or Abandonment
      • 1.  Definition of Abandonment  4.78
      • 2.  Measure of Damages
        • a.  Termination of Lease (CC §1951.2)  4.79
        • b.  Continuation of Lease (CC §1951.4)  4.80
        • c.  Liquidated Damages; Equitable Relief; Nonexclusivity of Remedies  4.81
        • d.  Statute of Limitations  4.82
    • H.  Holding Over After Lease Expiration
      • 1.  Election to Treat Tenant as Trespasser  4.83
      • 2.  Holdover Tenant’s Liability to New Tenant  4.84
      • 3.  Statute of Limitations  4.85
    • I.  Unlawful Detainer
      • 1.  Back Rent  4.86
      • 2.  Damages Caused by Unlawful Detainer  4.87
      • 3.  Prejudgment Interest  4.88
      • 4.  Costs
        • a.  Awarded to Prevailing Party  4.89
        • b.  Allowable Costs and Expenses  4.90
        • c.  Procedure for Claiming Costs  4.91
        • d.  Limitations on Costs  4.92
      • 5.  Attorney Fees
        • a.  Basis for Recovery  4.93
        • b.  Determining Who Is Prevailing Party
          • (1)  Party Recovering “Greater Relief”  4.94
          • (2)  Effect of Dismissal  4.95
        • c.  Limits on Recovery by Prevailing Party  4.96
        • d.  Determining Amount of Fees  4.97
        • e.  Fees for Services Before Complaint Filed  4.98
        • f.  Award of Fees Against Successors in Interest  4.99
        • g.  Attorney Fees on Appeal  4.100
        • h.  Procedure for Claiming Fees  4.101
          • (1)  Basis of Award Governs Procedure
            • (a)  Contractual Attorney Fees  4.102
            • (b)  Statutory Attorney Fees  4.103
          • (2)  Time Limits for Claiming Attorney Fees  4.104
        • i.  Statute of Limitations  4.105
  • V.  MISCELLANEOUS DAMAGE FACTORS
    • A.  Liquidated Damages  4.106
    • B.  Proof of Damages  4.107
    • C.  Mitigation  4.108
    • D.  Attorney Fees  4.109
    • E.  Expert Witness Fees  4.110
    • F.  Costs  4.111
    • G.  Certainty of Damages  4.112
    • H.  Nominal Damages  4.113
    • I.  Damages Nondischargeable in Bankruptcy  4.114

5

Injury to Property

Stephen L. R. McNichols

  • I.  SCOPE OF CHAPTER  5.1
  • II.  NUISANCE
    • A.  General Definition  5.2
    • B.  Nuisance Per Se  5.3
    • C.  Categories of Nuisance Under CC §3479  5.4
      • 1.  Objective Standard Under CC §3479  5.5
      • 2.  Balancing Equities Required Under CC §3479  5.6
      • 3.  Exception for Activities Expressly Authorized by Statute  5.6A
    • D.  Public Nuisance
      • 1.  Definition  5.7
      • 2.  Standing  5.8
    • E.  Private Nuisance
      • 1.  Definition  5.9
      • 2.  Threat of Future Injury  5.10
      • 3.  Blockage of Air, Light, or View  5.11
    • F.  Nuisance That Is Both Public and Private  5.12
    • G.  Distinction Between Temporary or Continuing Nuisances and Permanent Nuisances
      • 1.  Importance of Classification for Selection of Remedies  5.13
      • 2.  Factors  5.14
      • 3.  Election by Plaintiff  5.15
      • 4.  Courts’ Preference for Continuing Nuisance  5.16
  • III.  TRESPASS
    • A.  Definition  5.17
    • B.  Distinction Between Nuisance and Trespass  5.18
  • IV.  ENCROACHMENT  5.19
  • V.  REMEDIES AND DAMAGES FOR PUBLIC NUISANCE  5.20
  • VI.  DAMAGES AND OTHER REMEDIES FOR PRIVATE NUISANCE AND TRESPASS  5.21
    • A.  Equitable or Legal Action?  5.22
    • B.  Jurisdiction  5.23
    • C.  Venue  5.24
    • D.  Right to Self-Help  5.25
    • E.  Injunction  5.26
      • 1.  Preliminary Injunction  5.26A
      • 2.  Injunctive Relief for Nuisance and Trespass  5.26B
      • 3.  Injunctive Relief for Encroachment  5.26C
    • F.  Tort Measure of Damages  5.27
      • 1.  Continuing Nuisance  5.28
      • 2.  Permanent Nuisance  5.29
      • 3.  Continuing Trespass  5.30
      • 4.  Permanent Trespass  5.31
    • G.  Injury to Products of Real Property  5.32
    • H.  Damage, Destruction, or Removal of Fixtures or Personal Property  5.33
    • I.  Injury to Persons  5.34
    • J.  Lost Profits  5.35
    • K.  Attorney Fees  5.36
    • L.  Prejudgment Interest  5.37
    • M.  Punitive Damages  5.38
    • N.  Statutory Limitations on Recovery  5.39
  • VII.  DEFENSES
    • A.  Comparative Fault  5.40
    • B.  Statutes of Limitations and Repose
      • 1.  Public Nuisance and Trespass  5.41
      • 2.  Private Nuisance and Trespass  5.42
        • a.  Permanent Nuisance and Trespass  5.43
        • b.  Continuing Nuisance and Trespass  5.44
        • c.  “Improvement” as Continuing Nuisance  5.44A
        • d.  Special Rules for Pollution Cases  5.45
    • C.  Laches  5.46
    • D.  Coming to Nuisance  5.47
    • E.  Consent  5.48
    • F.  Balancing Equities  5.49
    • G.  Due Care  5.50
    • H.  Use Consistent With Applicable Zoning  5.51
    • I.  Separation of Powers and Statutory Immunity  5.52
    • J.  Scope of Injunction  5.53
  • VIII.  RELATED ACTIONS  5.54

6

Intellectual Property Infringement and Misappropriation

Leo E. Lundberg, Jr.

Surjit P. Soni

  • I.  PATENT INFRINGEMENT
    • A.  Statutory Basis for Damages and Statute of Limitations  6.1
    • B.  Lost Profits  6.2
      • 1.  Requirement of Causation in Fact  6.3
      • 2.  Panduit Causation Test  6.4
      • 3.  Measure of Lost Profits  6.5
      • 4.  Lost Profits for Patented Products  6.6
      • 5.  Lost Profits for Unpatented Products  6.7
      • 6.  Entire Market Value Rule  6.8
      • 7.  Price Erosion Damages  6.9
      • 8.  Absence of Established Royalty Rate  6.10
      • 9.  Factors That Serve as Basis for Reasonable Royalty Rate  6.11
      • 10.  Georgia-Pacific Factors  6.12
    • C.  Willful Infringement Damages  6.13
    • D.  Prejudgment Interest  6.14
    • E.  Attorney Fees  6.14A
  • II.  COPYRIGHT INFRINGEMENT
    • A.  Statutory Basis for Damages and Statute of Limitations  6.15
    • B.  Actual Damages  6.16
      • 1.  Loss in Value of Copyrighted Material  6.17
      • 2.  Value of Use  6.18
      • 3.  Plaintiff’s Lost Profits
        • a.  Lost Revenue as Result of Infringement  6.19
        • b.  Plaintiff’s Costs Must Be Deducted to Determine Lost Profits  6.20
    • C.  Defendant’s Profits  6.21
      • 1.  Gross Revenues Attributable to Infringement  6.22
      • 2.  Deductible Expenses  6.23
      • 3.  Apportionment of Profits Between Infringing and Noninfringing Elements  6.24
    • D.  Statutory Damages  6.25
    • E.  Costs and Attorney Fees  6.26
    • F.  Prejudgment Interest  6.26A
    • G.  Damages Under Digital Millennium Copyright Act (DMCA)  6.27
    • H.  Illegality No Defense to Damages  6.27A
  • III.  TRADEMARK INFRINGEMENT
    • A.  Lanham Act and Statute of Limitations  6.28
      • 1.  Defendant’s Profits  6.29
      • 2.  Plaintiff’s Damages  6.30
        • a.  Treble Damages and Punitive Damages  6.31
        • b.  Statutory Damages for Counterfeit Marks and for Violation of 15 USC §1125(d)(1)  6.31A
        • c.  Prejudgment Interest and Attorney Fees  6.32
    • B.  California Trademark Law  6.33
  • IV.  TRADE SECRET MISAPPROPRIATION AND STATUTE OF LIMITATIONS  6.34
    • A.  Actual Damages  6.35
    • B.  Unjust Enrichment  6.36
    • C.  Reasonable Royalty  6.37
    • D.  Punitive Damages  6.38
    • E.  Attorney Fees  6.39
  • V.  REMEDIES FOR MISAPPROPRIATION UNDER OTHER COMMON LAW THEORIES
    • A.  Possible Preemption of Claims Not Based on CUTSA  6.39A
    • B.  Fraud (Deceit) Damages and Statute of Limitations  6.40
      • 1.  Lost Profits as Additional or Consequential Damages for Nonfiduciary Claims  6.41
      • 2.  Lost Profits for Claims Against Fiduciaries  6.42
    • C.  Conversion Damages and Statute of Limitations  6.43
    • D.  Restitution Based on Quasi-Contract/Unjust Enrichment  6.44
      • 1.  General Measure of Restitution for Quasi-Contract/Unjust Enrichment  6.45
      • 2.  Restitution for Lost Profits Attributable to Property  6.46
      • 3.  Constructive Trust Remedy
        • a.  Nature of Constructive Trust Remedy  6.47
        • b.  Constructive Trust and Quasi-Contract Claims Based on Unjust Enrichment  6.48
        • c.  Property Subject to Constructive Trust  6.49
  • VI.  CHECKLIST: SUGGESTED DISCOVERY  6.50
  • VII.  REQUIRED FACTUAL BASIS FOR OPINIONS OF EXPERTS
    • A.  Federal Rules of Evidence
      • 1.  Permitted Basis for Expert’s Opinion  6.51
      • 2.  Procedure for Establishing Foundation of Expert Testimony  6.52
      • 3.  Application of Reliable Data Requirement  6.53
    • B.  California Evidence Code
      • 1.  Permitted Basis for Expert’s Opinion  6.54
      • 2.  Need to Establish Foundation  6.55
      • 3.  Procedure for Establishing Foundation  6.56
      • 4.  Application of Reliable Data Requirement  6.57
  • VIII.  INSURANCE AS SOURCE FOR COLLECTION OF DAMAGES  6.57A

7

Tax Aspects

Robert W. Wood

  • I.  IMPORTANCE OF TAX RULES IN TERMINATION OF LITIGATION
    • A.  Role of Taxation in Litigation  7.1
    • B.  Real Effects on Position of Parties  7.2
  • II.  DISTINCTION BETWEEN SETTLEMENTS AND JUDGMENTS  7.3
    • A.  Reference to Underlying Claim: Origin of Claim  7.4
      • 1.  Origin of Claim  7.5
      • 2.  Sale or Exchange for Capital Treatment  7.6
    • B.  Lost Profits  7.7
    • C.  Harm to Capital Assets  7.8
    • D.  Involuntary Conversions  7.9
    • E.  Gain on Sale of Residence  7.10
    • F.  Reference to Basis of Capital Assets  7.11
    • G.  Goodwill  7.12
    • H.  Personal Physical Injuries  7.13
    • I.  Back Pay  7.14
  • III.  CLASSIFYING OTHER RECOVERIES  7.15
    • A.  Income Subject to IRC §61  7.16
    • B.  Continued Reference to Underlying Claims  7.17
  • IV.  RECOVERIES FOR BUSINESS INJURIES
    • A.  Lost Profits  7.18
    • B.  Damage to Goodwill and Other Capital Recoveries  7.19
    • C.  Timing of Income  7.20
    • D.  Distinction Between Business Injuries and Personal Injury Damages [Deleted]  7.21
  • V.  CHARACTER OF PAYMENTS: REFERENCE TO UNDERLYING TRANSACTION  7.22
    • A.  Types of Lost Profit Recoveries  7.23
      • 1.  Noncapital Recoveries  7.24
      • 2.  Commission Income  7.25
      • 3.  Income Versus Nontaxable Bequest  7.26
      • 4.  Miscellaneous Lost Profit Recoveries  7.27
    • B.  Fraud, Misrepresentation, and Breach of Fiduciary Duty Claims
      • 1.  Fraud Claims  7.28
      • 2.  Breach of Fiduciary Duty Claims  7.29
      • 3.  Securities Fraud in Reorganization  7.30
      • 4.  Operation of Tax Benefit Rule  7.31
      • 5.  Compensation for Damages Causing Additional Federal Income Tax  7.32
      • 6.  Recovery for Breach of Covenant Not to Compete  7.33
      • 7.  Patent Infringement Damages  7.34
      • 8.  Discharge of Debt  7.35
  • VI.  TAXATION OF VARIOUS BUSINESS RECOVERIES
    • A.  Recoveries Involving Stock  7.36
      • 1.  Patent Infringement Actions  7.37
      • 2.  Recoveries Under Liquidated Damages Provisions  7.38
    • B.  Miscellaneous Business Injuries
      • 1.  Presumption of Lost Profits Recovery  7.39
      • 2.  Recoveries Under Contract Rights  7.40
      • 3.  Proving Capital Asset Status and Basis  7.41
      • 4.  Allocating Among Claims  7.42
      • 5.  IRA Contributions  7.43
      • 6.  Involuntary Conversions  7.44
      • 7.  Settlement Versus Judgment  7.45
      • 8.  Cases Settling on Appeal  7.46
      • 9.  Semantics and Other Issues Involving “Interest”  7.47
      • 10.  Antitrust Recoveries  7.48
    • C.  Tax Treatment of Recovered Attorney Fees  7.49
      • 1.  Contingent Fees Generally Not Deductible Under Banks  7.49A
      • 2.  Fees Deductible in Certain Unlawful Discrimination Cases  7.49B
      • 3.  Alternative Minimum Tax Considerations  7.49C
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Products specifications
PRACTICE AREA Civil Litigation & Torts
PRACTICE AREA Law Practice Skills
PRODUCT GROUP Publication
Products specifications
PRACTICE AREA Civil Litigation & Torts
PRACTICE AREA Law Practice Skills
PRODUCT GROUP Publication