2cases1 x
Case Briefs: Find attached.
1.Critical Legal Thinking Case It is entitled Tri-State Petroleum v. Saber Energy, Inc. Tri-State admitted its breach but claimed that lost profits are an inappropriate measure of damages. Using IRAC, who wins?
The Case:
18.4 Right to Recover Lost Profits Saber Energy, Inc. (Saber), entered into a sales contract with Tri-State Petroleum Corporation (Tri-State). The contract called for Saber to sell Tri-State 110,000 barrels of gasoline per month for six months. Saber was to deliver the gasoline through the colonial pipeline in Pasadena, Texas. The first 110,000 barrels were delivered on time. On August 1, Saber was informed that Tri-State was canceling the contract. Saber sued Tri-State for breach of contract and sought to recover its lost profits as damages. Tri-State admitted its breach but claimed that lost profits is an inappropriate measure of damages. Who wins?
Tri-State Petroleum Corporation v. Saber Energy, Inc. 845 F.2d 575, Web 1988 U.S. App. Lexis 6819 (United States Court of Appeals for the Fifth Circuit)
2. Critical Legal Thinking Case on Liquidated Damages. The case is entitled The case Uzan v. 845 UN Limited Partnership. You do not need to write in IRAC for these questions.
How do liquidated damages differ from actual damages?
Do liquidated damages serve an important busines
s purpose?
CASE 2
“In his affidavit Donald Trump stated that he sought
25% down payments from preconstruction purchasers
at the Trump World Tower because of the substantial
length of time between contract signing and closing, and
because of the obvious associated risks.”
—Mazzarelli, Judge
The Trump World Tower is a 72-story luxury condominium building constructed at 845 United Nations Plaza in Manhattan, New York. Donald Trump is managing general partner of the building. Even before the building was constructed, 845 UN Limited Partnership (845 UN) began selling condominiums at the building. The condominium offering plan required a nonrefundable down payment of 25 percent of the purchase price. The purchase contract
provided that if a purchaser defaulted and did not complete the purchase, 845 UN could keep the 25 percent down payment as liquidated damages.
Cem Uzan and Hakan Uzan, brothers and Turkish billionaires, each contracted to purchase two condominium units on the top floors of the building. Cem and Hakan were both represented by attorneys. Over the course of two years, while the building was being constructed, the brothers paid the 25 percent nonrefundable down payment of $8 million. On September 11, 2001, before the building was complete, terrorists attacked New York City by flying two planes into the World Trade Center, the city’s two tallest buildings, murdering thousands of people. Cem and Hakan sent letters to 845 UN, rescinding their purchase agreements because of the terrorist attack that occurred on September 11. Thus, 845 UN terminated the four purchase agreements and kept the 25 percent down payments on the four condominiums as liquidated damages. Cem and Hakan sued 845 UN, alleging that the money should be returned to them. However, 845 UN
defended, arguing that the 25 percent nonrefundable down payment was an enforceable liquidated damages clause.
The Supreme Court of New York, appellate division, sided with 845 UN and held that Cem and Hakan had breached their contract with 845 UN and that 845 UN was entitled to keep the 25 percent down payment as liquidated damages. The appellate court granted 845 UN’s motion
for summary judgment, allowing 845 UN to keep Cem and Hakan’s down payments and dismissed their complaint.
Uzan v. 845 UN Limited Partnership, 10 A.D.3d
230, 778 N.Y.S.2d 171, Web 2004 N.Y.App. Div. Lexis
8362 (Supreme Court of New York, Appellate Division)
Critical Legal Thinking Questions
How do liquidated damages differ from actual damages?
Do liquidated damages serve an important busines
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