1 Introduction 1
Ⅰ Method 2
A Fit 3
B Coherence 5
C Morality 7
D Transparency 8
Ⅱ Conclusion 10
2 Rationales Behind Disgorgement Damages 11
Ⅰ Introduction 11
Ⅱ Compensatory Rationale 14
A Compensation for Loss 15
B Substitutive Compensation 18
ⅰ Compensation for a Lost Right 18
ⅱ Rights-based Analysis 23
C Conclusion 25
Ⅲ Deterrent Rationale 26
A Deterrence and the Nature of Contractual Obligation 27
B Deterrence and Efficiency 29
C Deterrence and Substitutability 31
Ⅳ Retributive Rationale 32
A The Retributive Aspect of Disgorgement Damages 33
B Digital Pulse and Punishment 35
C ‘Cynical Breach' and the Retributive Rationale 40
ⅰ The Nature of ‘Cynical Breach' 41
ⅱ Reasons Against ‘Cynical Breach' as a Criterion 42
ⅲ Reasons For ‘Cynical Breach' as a Criterion 43
ⅳ Moving from ‘Cynical Breach' to ‘Advertent Breach' 44
D Retribution, Desert, Mercy and Bars to Relief 46
Ⅴ Conclusion 46
3 The Claimant's ‘Legitimate Interest' and the Role of Substitutability 48
Ⅰ Introduction 48
Ⅱ The ‘Legitimate Interest' Test and Substitutability 52
Ⅲ Policies behind the Primary Duty to Perform Contracts 53
Ⅳ The Performance Interest 58
A The Courts' Attitude towards the Performance Interest:Support in Principle 58
B The Courts' Attitude towards the Performance Interest: Failure to Support Claimants in Practice with Remedies? 60
ⅰ The Nature of the Expectation Interest 62
ⅱ The Primacy of Expectation Damages 65
Ⅴ Substitutability and Disgorgement 67
A Disgorgement should be Available when the Subject Matter of the Contract is Not Substitutable 67
B Substitutability - Blake and Cases Following 72
ⅰ Blake 72
ⅱ Cases Following Blake 73
Ⅵ Objections to a Substitutability Analysis 77
A Using Availability of Specific Relief as a Peg on which to Hang Availability of Disgorgement Damages 78
B Disgorgement Preferable to an Expanded Definition of Expectation Loss 81
C Disgorgement Damages are not a Fusion Fallacy 84
Ⅶ Conclusion: a Different Way of Looking at Disgorgement Damages 86
4 ‘Second Sale' Cases 87
Ⅰ Introduction 87
Ⅱ ‘Second Sale' Cases 89
A Contracts for Sale of Land 89
B Contracts for Sale of Goods or Chattels 94
C Contracts for Shares and Stock 99
D Contracts of Services 101
Ⅲ ‘Efficient Breach' and the ‘Second Sale' Cases 106
A History of ‘Efficient Breach' Theory 107
B The Theory of ‘Efficient Breach' 108
C Critiques of ‘Efficient Breach' 109
ⅰ Third Party Can Acquire Subject Matter of the Contract om Promisee 110
ⅱ Lack of Consideration of Transaction Costs 111
ⅲ Incorrect Factual Predicates 112
ⅳ ‘Efficient Breach' is Inefficient 113
ⅴ ‘Efficient Breach' Does Not Fit with the Law 114
D Conclusion to ‘Efficient Breach' 115
Ⅳ Conclusion 116
5 ‘Agency Problem' Cases 118
Ⅰ Introduction 118
Ⅱ The ‘Agency Problem' and Disgorgement 122
A Disgorgement, the ‘Agency Problem' and Fiduciary Duties 122
B Disgorgement, the ‘Agency Problem' and Negative Covenants 124
Ⅲ The Fiduciary ‘Bundle of Obligations' 128
Ⅳ Criteria for the Award of Disgorgement Damages for Breach of Negative Covenant 132
A Criterion 1: Substitutability 132
B Criterion 2: a Contract Designed to Serve Interests Other than Profit-making 134
ⅰ Contracts Involving a Proprietary or Quasi-proprietary Interest 135
ⅱ Contracts Involving National Security or the National Interest 136
ⅲ Contracts Involving Resolution of a Legal Dispute 139
ⅳ Contracts Involving the Protection of Third Party Family Members 143
ⅴ Other Contracts Involving the Public Interest 144
Ⅴ Conclusion 145
6 The Role of ‘Restitutionary Damages' 146
Ⅰ Introduction 146
Ⅱ What are ‘Restitutionary Damages'? 147
Ⅲ Restitutionary Damages - Still Unhappy 151
Ⅳ A Collapsing of Categories 154
Ⅴ When Should ‘Reasonable Fee' Awards be Granted? 161
Ⅵ Scope of Disgorgement for ‘Skimped Performance' 165
A Skimped Performance and the ‘Restoration Cases' 171
ⅰ Construction Contracts and Other Cases Involving Building 172
ⅱ Contracts for Restoration of Land 175
B Skimped Performance and Contracts Designed to Reduce Risk 179
Ⅶ Conclusion: Choice of Remedy 182
7 Allowances and Bars to Relief 186
Ⅰ Introduction 186
Ⅱ Calculating the Account - Causation, Remoteness and Apportionment 188
A The Nature of the Account 188
B Causation and Remoteness 189
C Apportionment 190
Ⅲ Desert and Mercy 192
A The Nature of ‘Desert' 192
B The Nature of ‘Mercy' 193
Ⅳ Allowances and Disgorgement Damages 196
A Justifications for Allowances 197
B Advertence and Allowances 199
Ⅴ Operation of Bars to Relief 200
A Delay and Acquiescence 201
B Lack of Clean Hands 207
C Hardship 208
Ⅵ Conclusion 210
8 Conclusion 212
Bibliography 215
Index 227