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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