Valentine v. General American Credit, Inc.
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Facts: Plaintiff sued for mental distress caused by dismissal from Defendant employer.
Issue: If that mental distress is foreseeable when you lose a job, should it be considered part of consequential damages?
Holding: Held for Defendant.
Reasons:
- The main purpose of the contract was economic, not mental health.
- Policy: Every business risk has mental element
- One always has emotional distress when he loses a job
- The purpose of contract law is to compensate, not to punish. Law will grant emotional damages for breach only when the contract has a personal element, such as:
- delivery of a baby or
- marriage K
- Exceptions:
- insurance refuses claim in bad faith (special relationship of insurance and client) or
- a tort is committed
