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today we're going to learn about the three types of contractual damage remedies through the case of Sullivan versus O'Connor which was decided by the Supreme Judicial Court of Massachusetts in 1973 Alice Sullivan was a professional entertainer and she had a problem her nose was excessively long and prominent she found a plastic surgeon dr. James O Connor who promised to quote enhance her beauty and improve her appearance legend has it he promised her a nose just like the movie star Hedy Lamarr Sullivan was supposed to undergo two surgeries in order to achieve this effect for a fee of 622 dollars instead however Sullivan underwent three surgeries that went badly and ended up with an uglier nose than the one she had started with it was bulbous flattened and broadened in the middle and the tip had lost symmetry Sullivan sued dr. O'Connor for both breach of contract and for medical malpractice the jury ruled for the doctor on the medical malpractice claim that is it found that he had exercised the care and judgment that could be expected from a professional like him but awarded the plaintiff thirteen thousand five hundred dollars of damages for breach of contract the opinion we've read is the decision of the highest court of the state of Massachusetts on appeal the justices cannot evaluate questions of fact but instead are looking at whether the judge instructed the jury correctly on how to calculate damages the judge had instructed them that Sullivan could could recover out-of-pocket expenses directed direct damages from the disfigurement of her nose and pain and suffering from the third operation the extra one that she was not supposed to undergo the defendant doctor or con took exception to the judges instructions saying they were flawed that that Sullivan should at most be able to recover just her out-of-pocket expenses the court must decide whether that argument is correct if it decides in favor of the defendant Sullivan can receive at most 622 dollars in direct cost and not anything else that the jury awarded her the central issue then is can a patient receive damages based on anything other than the direct expenses fees she paid in particular for pain and suffering and for the failure to achieve the promised result originally Sullivan also took exception to the judges instructions the judge had suggested that she could receive damages based on the difference between the nose with which she began and the nose she ended up with but she thought she should be able to receive the difference between Hedy Lamarr's nose the nose she was promised and the know she ended up with however by the time that the opinion was written she had waived this objection and so justice Kaplan had no ability to change the award in her favor she might have been able to get a larger ward if she had preserved her objection on appeal so Justice Caplan first asks whether the enforcement of the physicians promise is against public policy courts have been skeptical for a couple reason about enforcing such promises first doctors can seldom in good faith promise specific results the court said and so they typically do not make such promises courts do not want to turn every enthusiastic remark about a procedure into a guarantee that's come that will lead to litigation second courts have been suspicious that patients bring contract claims are merely lying to get around the statute of limitations for medical malpractice claims which are more appropriate such matters but justice Kaplan also recognizes that some doctors may on occasion guarantee results and he thinks that the jury could find that to be the case for dr. O'Connor he therefore concludes that contractual remedies are not forbidden for all medical cases this position makes sense because at least some of the time physicians may be the least cost avoiders other providers of goods and services sometimes give guarantees that their products will work consistently than if they do occasionally fail and we think that it's a good policy since the manufacturers or service providers are often in the best position to control the risks of failure so for some medical operations this may also be the case with regard to physicians in this case justice Kaplan considered different purposes of contract remedies in order to determine what damages solvent is entitled to receive section 344 of the Restatement summarises the three main interests that contract damages protect judicial remedies under the rules stated in the Restatement served to protect one or more of the following interests of a promisee a his expectation interest which is his or her interest in having the benefit of the bargain by being put in as good a position as he or she would have been in had the contract been performed be the reliance interest which is his or her interest in being reimbursed for the loss caused by relying on the contract and you do this by being put in as good a position as he or she would have been and had the contract not been made and finally there's something called the restitution interest which is a plaintiffs interest in having restored to him any benefit that he convert on the defendant let's look at each of these damaged interests in turn first the expectation interest is the one that is most commonly awarded as damages in contract law when a court Awards a plaintiff expectation damages it tries to put the plaintiff in as good a position as she would have been in had the defendant performed the contract as promised to assess expectation damages we have to compare the position of the plaintiff that the plaintiff would have been in if the defendant had perfectly performed his promise with the position we find the plaintiff in now the idea is that when one party breaches the contract he has no right to worsen the other parties relative to position to what it would have been if the contract had been performed in law economics this principle is connected to the idea of efficient breach a party should breach a contract only when he receives benefits from doing so that are enough to compensate the other party for her losses from the breach we can consider what expectation damages would look like in this case in the world promised by the contract Sullivan would have paid six hundred and twenty two dollars experience pain and suffering from two operations and wound up with the nose like Hedy Lamarr's instead she paid the fee experience pain and suffering from three operations and wound up with the de figured knows the difference between these two positions which she would recover under the expectation damage measure is the pain and suffering from the third operation and the difference between a beautiful nose and a disfigured one justice Kaplan describes the general unenthusiastic ism of Courts about applying expectation damages in medical cases the judges think that doctors promises of cures are just statements of opinions with some optimistic colouring and that enforcing the expectation interest could leave doctors to practice defensive medicine it's also very difficult to calculate the value of a purely hypothetical go end result but Kaplan also cites the famous case of Hawkins vs. McGee from New Hampshire in 1929 in which a man did recover expectation damages from a physician the doctor had promised to give him a good or perfect hand and so his damages were based on the difference in value between such a hand and the mangled and hairy one that he ended up in so justice Kaplan cannot rule out the expectation interest as a possible damage measure when a worrying reliance damages in contrast the goal is to put the plaintiff back in the position she occupied just before the parties entered in upon the agreement so to assess reliance damages we have to compare the plaintiffs position just before entering the contract with the position we find her in now in this case MS Sullivan would never have paid $622 she would never have experienced pain and suffering from any of the operations and she would still have her old nose she would be entitled to the value of all of three of these in damages under a reliance measure of damages just as Kaplan points out that your courts have begun to apply this type of damages in patient-physician contract cases and he seems to favor this because of the reasons he gave for being skeptical about large expectation awards and medical cases he also cites contemporary research by fuller and Perdue who argued that expectation damages make the most sense in commercial context but that reliance damages should be the default form of damages in other context while that view has never fully caught on justice Kaplan founded persuasive it's worth noticing that in some situations the difference between expectation and reliance damages vanishes suppose for example that there had been a second doctor who would have made a similar promise and would have succeeded in giving Sullivan a heavy Lemar like nose then the plaintiff could argue that in reliance on dr. Conners promise she turned down the alternative offer from the other physician her position if she had not entered into the contract with dr. O'Connor is that she would have entered into a successful contract with the other doctor so the alternative situation that forms the basis for calculating damages looks the same for both reliance and expectation we compared Sullivan disfigured nose to the perfect nose that is the reliance damage damages end up incorporating Sullivan's opportunity costs in selecting dr. O'Connor over the competing physician the restitution interest the third measure of damages is discussed less frequently and is concerned with ensuring that the party that has breached a contract doesn't get to keep the benefits he or she received from the contract in this case that would mean that dr. Connor would have to pay back the $622 fee he received from Sullivan well this is the sort of damages that dr. O'Connor argues for justice Kaplan never seriously contemplates this as an option as it would be plainly to Meagher while expectation and Reliance focus on the plaintiffs positions restitution focuses on the defendants positions the more standard type of restitution attempts to put the defendant in the position he or she would have been in had the contract not been made it does compares the position we find the defendant in with the position the doctor was in just before making the contract we find the doctor in the position of having received fees and having expended effort in three operations to put the doctor in the ex-ante position we would need to force the doctor to scourge the fees paid lest some discount for the physicians effort but restitution often for simplicity might just force the disgorgement of the fees paid by the way.if you should be able to create a two-by-two chart with expectation reliance and restitution in three of the four boxes and realized that there is a fourth measure of damages which would that would strive to put the doctor in the ex-post position that is in the position as if the contract had been fully performed I discussed just that possibility in my two by two lecture in the law students toolkit course this table provides the summary of the conclusions we've come to over the past few slides along with the judges instruction to the jury as you can see his instructions don't quite match either reliance damages or expectation damages let's go through a few of the categories first of all with regard to the doctors fees the doctors fees are available as damages under the reliance measure since Sullivan wouldn't have paid them if not for the existence of the contract if not for her reliance on the contract she cannot recover them however under the expectation measure because she would have paid them if the operation had been successful here the trial judge's instructions matched the reliance measure now with regard to out-of-pocket fees and the pain and suffering they both work in the same way under the reliance measure the plaintiffs can recover for all three operations since none of the operations would have happened without contract existing without her reliance on the contract however under the expectation measure the plaintiff can only recover damages for the third operation because she would have paid the fees and experienced the pain and suffering of the first two operations even if the operations had been successful note however that the trial judge's instructions match the reliance measure for out-of-pocket fees but the less gener generous expectancy measure for pain and suffering this may reflect the judges greater comfort in breach of contract cases with competency nation for monetary costs than with compensation for pain and suffering the damage categories relating to lost earnings and to the value of Sullivan's knows itself also form a similar pair they worked the same way when protecting the reliance interest we want to put solvent back in the position she was and before the contract was formed and so we calculate the difference between her situation then in her situation now when projecting the expectation interest we want to put solvent into the hypothetical position she would have been in had dr. O'Connor accomplished his promised operation and so we calculate the difference between the hypothetical situation of her having a better nose and Sullivan's actual situation we don't have any evidence of the trial court's view on lost earnings though it looks like reliance damages because the Court did not contemplate how much Sullivan might have earned if she looked like Hedy Lamarr but we know that the judge instructed the jury to calculate reliance damages for the value of her nose the final result in the case reflects a general principle that common law judges apply in making decisions the only answer the question that they absolutely must hear Justice Caplan is only deciding whether Sullivan can receive damages for pain and suffering for the third operation and damages for the worsened condition of her nose it turns out that whether justice Kaplan chooses expectancy damages or reliance damages she'd be entitled to these two forms of damages either way so it's not necessary for him to pick expectation or reliance damages first let's think about the pain and suffering damages for the third operation in the expectation damages view MS Sullivan is entitled to these because she was only supposed to undergo two operations in the reliance damages new Sullivan would be entitled with ease along with pain and suffering for the first two operations because we're trying to put her in the position she was in before she made an agreement with dr. O'Connor now let's think about the damages from the worsened condition of her nose it's clear that Sullivan is entitled to these on the reliance damages view because these damages simply reflect the harm O'Connor did to her which we're trying to make right in the expectancy view on the other hand should be entitled to the difference between the hedy lamarr perfect nose and the disfigured one she wound up with but these damages would definitely be larger and so she's at least entitled to the amounts be a jury awarded her under the instruction the judge gave so again justice Kaplan doesn't even have to come to a conclusion about what types of damages are appropriate in this case because the plaintiff wins either way he doesn't declare a general rule and Alice Alvin not waived her rebuttal claims to the other types of damages he might have had to come to a decision about whether she could receive expectation damages for the disfigurement of her nose it's true that she received her out-of-pocket expenses for all three operations which would only be valid valid under a reliance measure but that issue was not before the Supreme Judicial Court in this case because neither of the parties challenged it so let's take a little quiz imagine that Michael has yellow teeth and dr. Smith promises to make them white but instead they end up Brown Michael sues for breach of contract which of the following would be calculated for expectation damages the answer is the second is the second answer here it's the difference in the value between the white and the brown teeth it's the difference between what the position he ends up with s with brown teeth and the position he was promised was the white teeth which is what is get granted by expectation damages okay now here's a related question it's the same hypothetical but the question is which of the following would be calculated for reliance damages the correct answer is number three difference in value between yellow and brown teeth for reliance damages we're trying to put the party the non-breaching party back in the position as if the contract had not been formed the position that Michael was in before the contract was having yellow teeth the position he ended up with was brown teeth and so we have to come up with a monetary value for the difference between having yellow and brown teeth from reading Sullivan and O'Connor we've learned about three different damage measures that they help protect people's contractual interests expectation damages try to put the non-breaching party in the same position she would have been in had the contract been carried out these are most common in commercial contract cases reliance damages in contrast try to put the non-breaching party in the same position she would have been in had the contract never been entered and restitution damages try to pull back from the breaching party any benefit that he or she received from the contract the general rule is that plaintiffs can choose which of the three damage measures they want to pursue in contractual breach cases now at least as the initial starting point defendants can have an ability to suggest that under some circumstances there that expectations would for example be over compensatory but as a starting matter the plaintiffs have the right to choose among these three and often choose expectation as the most beneficial in this case Alice Sullivan waived some of the additional damages she might have received under the expectation measure had she pursued a different litigation strategy she might have won more or Justice Caplan might have explicitly ruled against awarding expectation damages in medical cases

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A: A piece of paper that says I am willing to do these things. The second thing is that there's a big difference between someone being a "good" or a "bad" person. A person might be a "good" person. A person might be a "bad" person. The reason that I say these are two different things is because good and bad don't necessarily refer to moral good in the strict classical sense. The reason that I say these are two different things is because good or bad refer to things like being a good friend, being a good parent or a good business partner, being a nice person. The reason that I say good and bad don't necessarily refer to moral goodness is that there's a big difference between being a good person and being a very good person. And when people think that being good or bad refer to moral goodness, then it's very easy to make a mistake. People think like you just said. Like, you are good. You are good at your job. You are going to get this promotion because of your job. You're going to marry a really great person. These things are good. So, a big mistake is to make moral good things into moral good. And if you start to think that it's moral good to be a friend, that is wrong. So, if we start to think that moral goodness is just what it sounds like like, then we're not going to get very far. And I'll give you an example. I have two friends. And the same goes for people. When you say to your friend, my friend has moral goodness. When you say to your friend, I like yo...