Free Reply to Response to Motion - District Court of Federal Claims - federal

Case 1:98-cv-00126-JFM

Document 827-2

Filed 06/21/2004

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TABLE OF CONTENTS PAGE ARGUMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 I. ALL APPLICABLE COURT DECISIONS SUPPORT THE CONCLUSION THAT FUTURE DAMAGES CANNOT BE AWARDED UPON A PARTIAL BREACH OF CONTRACT CLAIM . . . . . . . . . . . . . . . . . . 1 A. Yankee Atomic Has Not Identified A Single Case In Which A Court Awarded A Plaintiff Future Damages In Response To A Partial Breach Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Courts Uniformly Have Precluded An Award Of Future Damages In Response To A Partial Breach Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

B. II.

IN SEEKING FUTURE DAMAGES, THE YANKEES ARE ASKING THIS COURT TO CONFLICT WITH THE RESTATEMENT, DESPITE THE ABSENCE OF ANY AUTHORITY IN SUPPORT OF THEIR DAMAGES REQUEST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 THE YANKEES' SUGGESTION THAT THEY SHOULD RECOVER FUTURE DAMAGES WOULD CREATE A NEW LEGAL DOCTRINE OF "ANTICIPATORY PARTIAL BREACH," WHICH OTHERWISE DOES NOT EXIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 BY RECOGNIZING A RIGHT TO FUTURE CAUSES OF ACTION BASED UPON FUTURE PARTIAL BREACHES, THE YANKEES IMPLIEDLY RECOGNIZE THE LIMITATIONS UPON THEIR ABILITY TO RECOVER FUTURE OR PROSPECTIVE DAMAGES . . . . . . 13

III.

IV.

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

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Case 1:98-cv-00126-JFM

Document 827-2

Filed 06/21/2004

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TABLE OF AUTHORITIES CASES PAGE(S)

Alder Terrace, Inc. v. United States, 161 F.3d 1372 (Fed. Cir. 1998) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Ammex, Inc. v. United States, 334 F.3d 1052 (Fed. Cir. 2003) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Christopher Village, L.P. v. United States, 360 F.3d 1319 (Fed. Cir. 2004) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 City of Fairfax, Va. v. Washington Metropolitan Area Transit Authority, 582 F.2d 1321 (4th Cir. 1978), cert. denied, 440 U.S. 914 (1979) . . . . . . . . . . . . . 11, 13 Coughlin v. Blair, 41 Cal. 2d 587, 262 P.2d 305 (1953) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 First National State Bank of N.J. v. Commonwealth Federal Savings & Loan Association, 610 F.2d 164 (3d Cir. 1979) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 5 Guntert v. City of Stockton, 55 Cal. App. 3d 131, 126 Cal. Rptr. 690 (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . passim Hansen Bancorp, Inc. v. United States, 367 F.3d 1297 (Fed. Cir. 2004) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Indiana Michigan Power Co. v. United States, 60 Fed. Cl. 639 (2004) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . passim Northern States Power Co. v. United States Department of Energy, 128 F.3d 754 (D.C. Cir. 1997), cert. denied, 525 U.S. 1015 (1998) . . . . . . . . . . . . . . . . 4 Tennessee Valley Authority v. United States, 60 Fed. Cl. 665 (2004) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 9, 10 Young Engineers, Inc. v. United States International Trade Commission, 721 F.2d 1305 (Fed. Cir. 1983) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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Case 1:98-cv-00126-JFM

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Filed 06/21/2004

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TABLE OF AUTHORITIES (cont'd) MISCELLANEOUS PAGE(S)

9 A. Corbin, Corbin on Contracts § 956 (interim ed. 1979) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 9 J. Murray, Corbin on Contracts § 956, (interim ed. 2003 Fall Cumulative Supp. 2003) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Restatement (Second) of Contracts § 236 (1981) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 9 Restatement (Second) of Contracts § 253 (1981) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 13 Restatement (Second) of Judgments § 26 (1982) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 9, 10

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