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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
OnLAW CP94560

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Print CP33550

2d edition, looseleaf, updated 12/19

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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 2019 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 2018 update.

Contract

Supplemental Causes of Action. Recent decisions, including Sheen v Wells Fargo Bank, N.A. (2019) 38 CA5th 346, indicate that in the contract litigation setting, a tort duty of care in negligence for purely economic losses is, at a minimum, difficult to establish absent a special relationship between the parties. See §1.15.

Prejudgment interest. In Cavalry SPV I, LLC v Watkins (2019) 36 CA5th 1070, the court of appeal held that a creditor could not ignore a contract’s interest provision and instead choose to collect prejudgment interest at the 10 percent rate under CC §3289. See §1.20.

Attorney fees. In Orozco v WPV San Jose, LLC (2019) 36 CA5th 375, the court of appeal held that a plaintiff who successfully rescinded a lease guaranty for fraud was entitled to attorney fees as a prevailing party under the guaranty’s broad fee clause language. See §1.23.

In Dane-Elec Corp., USA v Bodokh (2019) 35 CA5th 761, the court of appeal held that Lab C §218.5(a), which provides for prevailing party fees in certain wage and hour claims, controls over CC §1717: a prevailing employer is entitled to fees only if the employee brought the action in bad faith, and only to the extent that the employee’s wage and contract claims were inextricably intertwined. See §1.30.

Liquidated damages. In Red & White Distrib., LLC v Osteroid Enters., LLC (2019) 38 CA5th 582, the court of appeal held that a stipulated judgment was an unenforceable penalty when it bore no reasonable relationship to damages parties could have anticipated plaintiff would suffer if defendants failed to pay settlement amount. See §1.42.

Insurance bad faith. In Mazik v Geico Gen. Ins. Co. (2019) 35 CA5th 455, the court of appeal engaged in an extensive analysis of “oppression” and “malice” under CC §3294(a) and found that an insurer’s bad faith delay in paying policy benefits justified compensatory damages of $313,508 and punitive damages of $1 million. See §1.58.

Labor

The United States Supreme Court agreed to decide whether Title VII’s sex discrimination provisions also prohibit discrimination based on sexual orientation. See Bostock v Clayton County Bd. of Comm’rs (11th Cir 2018) 723 Fed Appx 964, cert granted (Apr. 22, 2019, No. 17–1623) 139 S Ct 1599 in §3.105.

Fair Employment and Housing Act. Effective January 1, 2019, Govt C §12965(b) was amended, in response to a split in appellate authority, to provide that an unsuccessful FEHA plaintiff who rejects a CCP §998 offer is not liable for the defendant’s postoffer attorney fees and costs unless the action was frivolous, unreasonable, or groundless when brought, or the plaintiff continued to litigate after it clearly became so. See §3.105.

Fair Labor Standards Act. The Department of Labor issued an advisory opinion stating that when state wage and hour laws conflict with the FLSA, compliance with state law is not a good faith defense to noncompliance with the FLSA. Department of Labor Opinion Letter, FLSA 2019–1 (Mar. 14, 2019). See §3.42.

Landlord/Tenant

In Orozco v WPV San Jose, LLC (2019) 36 CA5th 375, the court of appeal held that a commercial lessee proved lost profits with reasonable certainty when a short time after the lease began, defendant shopping center leased out nearby space to a competing business. See §4.107.

In DeLisi v Lam (2019) 39 CA5th 663, the court of appeal held that actual damages for wrongful eviction under San Francisco’s rent ordinance can be measured by “rent differential,” an amount that may be considerably higher than the tenant’s out-of-pocket losses. Rent differential is the difference between the rent the tenant would have paid for the expected duration of the rent-controlled tenancy and the market rent for the unit from which the tenant was displaced. See §4.49.

Injury to Property

The California Supreme Court is considering in B.B. v County of Los Angeles (review granted Oct. 10, 2018, S250734; superseded opinion at 25 CA5th 115) whether CC §1431.2 (several liability; property damage) limits noneconomic damages to the defendant’s proportionate share of fault even when the defendant’s misconduct was intentional. See §5.40.

In McBride v Smith (2018) 18 CA5th 1160, the court of appeal held that the fact that a plaintiff did not have right to exclusive possession of an easement did not preclude a nuisance claim. See §5.18.

In Hoffman v Superior Ready Mix Concrete, L.P. (2018) 30 CA5th 474, the court of appeal held that CCP §1021.9, which entitles a prevailing plaintiff to attorney fees when a trespass occurs on land “under cultivation,” applies even when the trespass did not damage the portion of property actually being cultivated. See §5.36.

Intellectual Property Infringement and Misappropriation

Patent infringement. Under the entire market value rule, if a patented product has valuable nonpatented features that contribute to driving consumer demand, damages must be apportioned to reflect only the value of the patented feature. In Power Integrations, Inc. v Fairchild Semiconductor Int’l, Inc. (Fed Cir 2018) 904 F3d 965, the Federal Circuit explained that the entire market value rule is appropriate only when the patented feature is “the sole driver of customer demand or substantially creates the value of the component parts.” See §6.8.

Copyright infringement. In Rimini St., Inc. v Oracle USA, Inc. (2019) ___ US ___, 139 S Ct 873, the United States Supreme Court decided that the term “full costs” in the Copyright Act (17 USC §505) does not permit recovery of any costs other than those specified in the general federal costs statute codified at 28 USC §§1821 and 1920. However, the Rimini decision did not address a line of cases holding that out-of-pocket costs that are normally billed to a client may be recoverable from the losing party as attorney fees under fee-shifting statutes. See §6.26.

Trademark infringement. The United States Supreme Court in Romag Fasteners, Inc. v Fossil, Inc. (Fed Cir, Feb. 5, 2019, No. 2018-2417) 2019 US App Lexis 19723, cert granted (June 28, 2019, No. 18-1233) 139 S Ct 2778, agreed to resolve the split in circuit authority as to whether willful infringement is a prerequisite in an award of defendant’s profits. See §6.29.

Tax Aspects

Sexual harassment settlements. Internal Revenue Code §162(q) of the Tax Cuts and Jobs Act, colloquially called the “Weinstein tax,” provides that settlement payments and attorney fees paid in connection with a sexual harassment settlement cannot be taken as a business deduction when there is a nondisclosure agreement. IRC §162(q). In response to concerns that this provision, intended to punish defendants, also applied to the plaintiff’s legal fees, the IRS posted an FAQ stating that plaintiff’s are not precluded from deducting attorney’s fees related to a confidential settlement or payment, if otherwise deductible. See §7.49.

Contingent attorney fees. The Tax Cuts and Jobs Act’s suspension of miscellaneous itemized deductions through 2025 (see IRC §§67–68) means that contingent attorney fee awards may be taxable income to plaintiffs who do not fall within one of the enumerated classes of claimants qualifying for an above-the-line deduction, e.g., a plaintiff suing an employer, a qualifying whistleblower, or a plaintiff suing for civil rights violations. Robert W. Wood, the author of chapter 7, encourages plaintiffs’ counsel to seek specialized tax advice, ideally before a case is resolved, to help shape their clients’ tax results. See §7.49D.

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