Chicago Coliseum Club v. Dempsey

Relevant Facts

Plaintiff was a corporation involved in arranging public boxing exhibitions. Defendant was the world heavyweight boxing champion Jack Dempsey. The plaintiff first contracted with Harry Willis to fight Jack Dempsey, and then contracted with Weisberg to promote the fight. Then the plaintiff contracted with Jack Dempsey to engage in a fight a few months down the road against Willis, in which he promised not to fight anyone else until the Willis fight. The plaintiff wired Dempsey that representatives of the life and accident insurance companies would be calling on him in accordance with the contract, to which he replied that he was training for a match against Tunney and that he has no contract with the plaintiff.

Procedural History

Plaintiff sought an injunction against Dempsey so that he would not be allowed to fight Tunney, which was awarded. As for damages, the trial court held that further expenses accrued by the plaintiff after the repudiation of the agreement were not recoverable.

Issues

1. Whether loss of profits are recoverable.
2. Whether expenses incurred prior to the contract are recoverable.
3. Whether expenses incurred attempting to restrain the defendant into complying with the agreement are recoverable.
4. Whether expenses incurred after the signing of the agreement but before the breach are recoverable.

Holding/Decision

Judgment reverse and cause remanded.

Rules

1. Compensation for damages for breach of contract must be established by evidence from which a court or jury are able to ascertain the extent of such damages by the usual rules of evidence and to a reasonable degree of certainty.
2. A party can only recover on damages that naturally flow from and are the result of the acts complained of.
3. Under notification of breach, the plaintiff took steps at its own financial risk.
4. Special expenses incurred between the date of the signing and the breach are