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  • 8/7/2019 Analysis of Damages and Remedies Resulting from the Seat Shortage of Super Bowl XLV

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    Analysis of Damages and Remedies Resulting from

    the Seat Shortage of Super Bowl XLV

    Exam # 257710

    **Not Intended to Satisfy Duquesne Law School ULWR Requirement**

    Professor Joseph Sabino Mistick

    Remedies and Damages

    LAWS C559.01

    Submitted April 27

    Spring Semester, 2011

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    INTRODUCTION

    Super Bowl XLV took place February 6, 2011 between the

    Pittsburgh Steelers and the Green Bay Packers at Cowboys Stadium

    in Arlington, Texas.1 Jerry Jones, the Dallas Cowboys owner,

    was hoping to break the all-time Super Bowl attendance record at

    that event.2 (The Dallas Cowboys are the operators of Cowboys

    Stadium, which is in turn owned by the City of Arlington).3

    Cowboys Stadium has a normal capacity of 80,000 people, although

    the capacity expands to 110,000, when including temporarily

    installed seating accommodations as well as standing only Party

    Passes.4, 5

    The seating problems at Cowboys Stadium started a week

    before the Super Bowl when a snow storm hit the Dallas-Fort

    Worth area that damaged the east end of the stadium, including

    the East Plaza.6 Over 3,000 tickets were sold to watch the game

    in the East Plaza of Cowboys Stadium. The ticketholders from

    the East Plaza, who paid $200 for external admission to watch

    the game on large television screens, were relocated to other

    areas outside of the stadium.7 Those ticketholders had no real

    issue with their relocation. As their admission was only for

    the external portion of the stadium, (they were not permitted to

    enter the stadium), the process of moving from one external area

    2

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    of the stadium to another created no injury and/or cause of

    action.

    However, the problems only increased on the day of the

    Super Bowl. To accommodate the increased capacity of the

    expected crowd, temporary seating accommodations were installed.

    Because of the effects of the snow storm, combined with the

    general preparations for the Super Bowl, the temporary seats

    installed in six sections were erected late enough that that the

    local fire marshal didnt have time to inspect them.8 As those

    seats were not inspected, 1,250 fans were left without seats

    that were already paid for.9, 10 Of those 1,250 fans left without

    seats, the National Football League found replacement seats for

    850, which the National Football League also claims were

    similar or better seats.11 The remaining 400 fans were left

    without immediate accommodations.12 Eventually, the 400

    remaining seatless fans were allowed to either watch the game

    from the outdoor plazas or within a field-level club behind the

    Pittsburgh Steelers bench.13 Despite the name, the field-level

    club was described as merely being a bar, forcing the fans to

    watch the game on televisions located throughout the club, since

    there was no view of the field from within the club.14 Also, as

    was mentioned, the outdoor plazas had no view of the field

    either, except via televisions. Therefore, none of the

    3

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    replacement arrangements for the last 400 fans offered a live

    view of the field.15

    The result of the incident involving the 400 fans specified

    supra has resulted in at least two civil cases.16, 17 This paper

    will analyze the area of law concerning remedies and damages,

    and will apply that law to the situation that occurred at Super

    Bowl XLV.

    LEGAL OVERVIEW

    While causes of action are determined by underlying

    substantive law, there is a general aspect of law that is

    applicable throughout the entirety of substantive lawthe law of

    remedies and damages. The principle behind this area of the law

    is exemplified by Sir William Blackstone in his Commentaries on

    the Laws of England:

    It is a general and indisputable rule, that where there isa legal right, there is also a legal remedy by suit oraction at law whenever that right is invaded.18

    That is not to say, however, that all perceived wrongs can be

    rectified through the courts. In order for a harm to be

    rectified by the law, a legal wrong must have been committed.19

    The main purpose of the law of remedies and damages is to

    recreate the situation that would have existed, had the legal

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    wrong not occurred; to allow an aggrieved party reclaim their

    rightful position.20, 21 This goal is pursued through different

    means within the laws of remedies and damages. There are

    various sections of the law that in one circumstance could be

    mutually exclusive, and concurrently applied in another. The

    first section of remedies and damages law to be analyzed is the

    type of remedy to be applied; a legal remedy or an equitable

    remedy.

    COMMON LAW AND STATUTORY REMEDIES

    The distinction between common law remedies and statutory

    remedies is well defined, though it is constantly evolving. As

    the name implies, common law remedies are those remedies that

    have been developed over time throughout the administration of

    precedential authority. Conversely, there are statutory

    remedies which are promulgated in statutes by legislatures and

    in regulations issued by executive administrative agencies.

    LEGAL AND EQUITABLE REMEDIES

    The disparity between legal and equitable remedies

    originates from the early system of courts in England.22 While

    an in-depth look at the English legal system reveals more courts

    5

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    and their specific functions, for the purpose of explanation,

    two courts that can be compared are the Court of Common Pleas

    and the Court of Chancery. The Court of Common Pleas involved

    cases in which the monarchy had no interest, comprised the vast

    majority of civil cases, and was the court which more than any

    other shaped the medieval common law.23 On the other hand, the

    Court of Chancery evolved from royal grants and property rights

    of the crown, and grew to include trusts, estates, guardianship,

    and similar legal entities.24, 25, 26, 27

    By the fifteenth century, courts of law like the Court of

    Common Pleas had established the use of common law. The common

    law and its application of precedent treated all cases with

    similar situations in a similar manner.28 The Court of Chancery,

    and other courts of equity did not use the principle of

    precedent; each case was distinct, and disputes were resolved on

    an individual basis.29 Each of these types of courts had their

    own body of substantive rules, procedural rules, and their own

    remedies.30

    Currently, the separate laws of legal and equitable

    remedies have converged a great deal. In America, nearly all of

    the states have merged the separate courts of law and equity.31

    Despite that, remedies are still classified as legal or

    equitable. Legal remedies involve monetary damages, discussed

    infra, as well as specialized coercive writs.32 Equitable

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    remedies include injunctions, declaratory judgments, and

    specific performance; generally, non-monetary relief. Also,

    there is a rule that states that a plaintiff cannot have an

    equitable remedy if a legal remedy would be adequate[;]

    however, the law has evolved to the point where that rule has

    lost much of its meaning.33

    Concerning the case of the Super Bowl XLV seat shortage,

    there are possibilities for both legal and equitable remedies.

    The National Football League has already offered a reimbursement

    of $5,000 or actual documented expenses, opening up the

    possibility of a remedy in law of monetary damages.34 The

    National Football League has also potentially created support

    for an equitable remedy by offering: 1) a free ticket to the

    next Super Bowl that is transferable to other parties along with

    a cash payment of $2,400 or 2) a free ticket to a future Super

    Bowl game of the fans choosing, plus round-trip airfare and

    hotel accommodations, all of which is non-transferable.35

    Although settlement offers do not contribute to the type of

    remedy available, and are prohibited from being used as evidence

    in the Federal Rules of Evidence, such offers could give

    credence to a partys council using specific tactics and

    requests for either type of remedy.

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    SPECIFIC AND SUBSTITUTIONARY REMEDIES

    While differing legal and equitable choices of law decide

    what specific remedies are available, the most fundamental

    remedial choice is between the specific and substitutionary

    remedies.36

    Specific remedies give a plaintiff exactly what they would

    have had, or would have been able to obtain, if they had not

    been the victim of a legal wrong. Specific remedies include

    injunctions, specific performance of contracts, restitution of

    specific property, and a restitution of a specific sum of

    money.37 Substitutionary remedies, on the other hand, attempt to

    give a plaintiff an award equivalent in value to the harm that

    was incurred. The most prevalent form of substitutionary

    remedies are monetary damages, (discussed infra).

    While there is a tendency to attribute specific remedies to

    equity and substitutionary remedies to law, this is not

    necessarily the case.38 The equity-law arrangement of remedies

    appears to be segregated due to the nature of the most popular

    remedies, but there is a significant deal of overlap in the

    remedies offered. Although specific remedies, such as

    injunctions, are usually sought in equity, there are also

    substitutionary remedies available, such as relief for breach of

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    fiduciary duty.39 Conversely, despite substitutionary remedies

    being the dominating award at law, there are also specific

    remedies available, such as ejectment and replevin.40

    In the case of the Super Bowl XLV seat shortage, the

    remedies will be exclusively substitutionary. The nature of

    Super Bowl tickets puts them in the same category as other

    unique chattel along with contracts for the sale of land, family

    heirlooms and rare artifacts.41 There can never again be the

    same game, played at the same time, between the same two teams,

    in the same exact situations, with the same historical

    consequences. The substitutionary remedy for the possible legal

    wrong may be either in law or equity, because, as discussed,

    neither are exclusive to substitutionary remedies. Furthermore,

    all of the settlement offers the National Football League mas

    made to the displaced fans have been substitutionary in nature;

    (cash payments, tickets to future Super Bowls, and combinations

    of the two.

    DAMAGES

    Damages is a term used to identify the recovery of

    monetary compensation for loss caused by the legal wrong of

    another.42 There are many different varieties of damages. All

    of the different types of damages share one thing in commoneach

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    form of damages awards money for the loss caused by the

    defendant.43 The following is a list and brief description of

    some of the more significant kinds of damages:

    Actual (Compensatory) Damages

    Actual damages are an amount awarded to a complainant to

    compensate a proven injury or loss.44 Actual damages are also

    referred to as compensatory damages, as they compensate the

    complainant sufficiently enough to indemnify the injured person

    for the loss suffered.45

    General Damages

    General damages are damages that the law presumes follow

    from the type of wrong complained of.46 These damages do not

    need to be alleged or proved.

    Special Damages

    Special damages are damages that are alleged to have been

    sustained in the circumstances of a particular wrong.47 These

    damages must be alleged and proved.

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    Consequential Damages

    Consequential damages result from losses that do not flow

    directly and immediately from a legal wrong, but can ultimately

    be traced back to that wrong.48

    Expectation Damages

    Expectation damages are compensation awarded for the loss

    of what a person reasonably anticipated from a transaction that

    was not completely executed.49

    Reliance Damages

    Reliance damages are awarded for losses incurred by acting

    in reliance on an agreement between contracting parties.50

    Punitive (Exemplary) Damages

    Punitive damages are damages awarded in addition to actual

    damages when a defendant acts with recklessness, malice, or

    deceit.51 These damages are also referred to as exemplary

    damages, as one of the aims of these damages is to punish

    blameworthy conduct, and deter that type of action by way of

    penalization above and beyond ordinary remedies.

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    Nominal Damages

    Nominal damages are a trivial amount awarded to a plaintiff

    to acknowledge a legal wrong, but when there is no substantial

    loss or injury to be compensated.52

    Permanent Damages

    Permanent damages are damages that are awarded for past,

    present, and future damages that cannot be avoided or otherwise

    remedied.53

    Temporary Damages

    Temporary damages are allowed for intermittent or

    occasionally recurring wrong.54 An example of this is a

    continuing trespass to property that can be removed or abated.

    Liquidated Damages

    Liquidated damages are damages that are associated with

    contract law. Contracts can include liquidated damages clauses

    that stipulate a reasonable estimation of damages to be

    recovered by one part if the other party breaches.55

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    Double & Treble Damages

    Double and treble damages are damages that are awarded at a

    rate of twice or triple the normal amount of damages.56 These

    damages are usually awarded pursuant to a statute.

    Damages, like other remedies, attempt to return an

    aggrieved party to the same position that they would have been

    in, had the legal wrong not occurred. However, if monetary

    damages are used, there is an issue of economic inadequacy. In

    fact, the theory of damages is predicated on the theory of

    economic inadequacy.57, 58 Valuation of monetary damages, (in

    lieu of a remedy that would exactly replace or compensate for

    the legal wrong), is imperfect and omits significant subjective

    impairments that deserve legal protection.59

    The goal of returning an aggrieved party can sometimes not

    always be completely achieved through the use of monetary

    damages. Some types of harm can be too speculative to

    compensate with damages, such as lost profits from a new

    business.60 Also, mental aggravation and waste of time cannot be

    compensated from a breached contract, (if there is no such

    contractual provision).61 Victims are also not allowed to

    recover for subjective losses resulting from sentimental

    attachments.

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    In this case, the issue of sentimental attachment could be

    the most important issue if the case is ultimately remedied with

    monetary damages. In the same way that a person selling a car

    elevates the price beyond what is commonly accepted, (usually

    lamented by buyers as someone selling their good times along

    with the car), fans of the football teams that were displaced

    probably attributed much higher value to their experience than

    the market value. (As an aside, this inequality between

    perceived value and market value is what allows the ticket

    scalping market to flourish, and consequently resulted in at

    least one Super Bowl XLV ticket being sold for $65,000.00).62 As

    such, even if damages are awarded at a value reasonably above

    market value, there is still a chance that some, if not many, of

    the displaced fans will feel as if they did not receive adequate

    compensation. This is a very intricate issue, though moot for

    the most part; while allegations of supposed sentimental value

    or personal meaning can wildly be attributed, or even falsified,

    there are no grounds for compensation on this basis. Despite

    that, as mentioned supra, the National Football League has

    already offered financial settlements that obviously take into

    account the sentimental value that fans attach to the football

    experience above and beyond market value.

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    RESTITUTION

    Where most remedies are aimed at assisting an aggrieved

    party recoup some measure of loss they have attained due to a

    legal wrong, restitutionary remedies are designed to force a

    defendant to forfeit a benefit, and repay that amount to the

    aggrieved party when it would be unjust for the party in the

    wrong to retain the benefit.63, 64 This area of the law

    traditionally proved to be confusing, as this principle falls

    outside of the traditionally recognized areas of the law, such

    as tort and contract.65 Although restitution involves the

    payment of money to an aggrieved party, restitution is separate

    and distinct form damages. While both are measures of monetary

    recovery, damages are based upon a plaintiffs loss, whereas

    restitution is based on a defendants gain.66

    The concept of a party in the wrong retaining an unearned

    benefit to the detriment of another party is called unjust

    enrichment.67 The restitutionary remedies resulting from unjust

    enrichment can be carried out via both law and equity.68 The

    remedy of unjust enrichment through law is called quasi

    contract, while the remedy of unjust enrichment through equity

    is called subrogation.

    A quasi contract is a fictional construct of a contract

    that, although no formal agreement has been made, is implied in

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    law.69 The concept of quasi contract also applies to formalized

    contracts when it is implied-in-fact when there exists conduct

    exceeding the formalized terms and there is also a corresponding

    manifestation of intent to be bound by said conduct.70

    Legal subrogation, in support of equitable interests,

    arises by operation of law or by implication in order to prevent

    fraud or injustice.71 The application of the subrogation:

    simply means substitution of one person for another;that is, one person is allowed to stand in the shoesof another and assert that persons rights against thedefendant. Factually, the case arises because, forsome justifiable reason, the subrogation plaintiff haspaid a debt owed by the defendant.72, 73

    The case of the Super Bowl XLV seat shortage could

    definitely incorporate some elements of restitution. The people

    whose seats were unavailable had already paid for their tickets.

    In return, they did not receive the seats for which they had

    engaged in a bargained for exchange. Some of the accommodations

    that were provided for these people were of significantly lesser

    value than what was paid for them. There is more than ample

    support for an argument that there is a value owed between the

    amount paid for the tickets and the accommodations provided for

    the event.

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    INJUNCTIONS

    Injunctions are an equitable remedy where performance of an

    action is either mandated or prohibited by the court. These

    mandates and prohibitions are called mandatory injunctions and

    negative injunctions, respectively.74 These injunctions attempt

    to stop both current and future violations of law and maintain

    an aggrieved party in their rightful position.75

    Injunctions are preventive remedies, rather than

    compensatory remedies; an aggrieved party need not be harmed at

    all, if an injunction is granted before the harm takes place.

    Injunctions also have a coercive element to them. Injunctions

    are enforceable by sanctions of contempt of court if the

    specified remedy is not followed.76 There are different kinds of

    contempt of court, each used in different circumstances with

    different ramifications:

    a. Criminal contempt. Violating an injunction iscontempt of court. Contempt is a criminal offense ifdone willfully. Plaintiff may bring the offense tothe attention of the court, and the court decideswhether to ask the prosecutor to prosecute thecontempt. Defendant is entitled to most of theprotections of criminal procedure.

    b. Compensatory civil contempt. Plaintiff may alsocite defendant for civil contempt. Civil contempt isa remedial proceeding, and plaintiff prosecutes ithimself. In compensatory civil contempt, the courtgrants compensation for any harm plaintiff suffered asa result of defendants violation of the injunction.Compensation in contempt generally includes attorneysfees and generally is awarded without jury trial.

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    c. Coercive civil contempt. Most important iscoercive civil contempt, in which the court imposesconditional penalties to coerce defendant intoobedience. These penalties are civil, but they mayinclude fines or imprisonment or both. There is no

    fixed limit to the penalties that can be imposed incoercive civil contempt, but he penalties must beconditional: Defendant must be able to avoid them.The court often specifies what steps defendant musttake to purge himself of contempt and thereby avoidcoercive penalties. The effect is to make theoriginal injunction more specific, and sometimes moredemanding.77

    As this case has not yet gone to trial, or even to

    significant preliminary hearings, there has been no opportunity

    for an injunction to be issued. An injunction may, however, be

    one of the resulting remedies that occur during the trial

    process. Since the issue of the seat shortage in Super Bowl XLV

    was so public, the National Football League, or any other entity

    associated with the, could be prohibited from discussing the

    case publicly so that the potential juror pool is not

    contaminated and/or so that public sentiment does not influence

    the case.

    DECLARATORY RELIEF

    The most common example of declaratory relief is the

    declaratory judgment.78 Declaratory judgments, similar to

    Internal Revenue Service Revenue Rulings, provide a reliable

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    legal statement of parties rights with respect to a certain

    situation.79 Also, like Internal Revenue Service Revenue

    Rulings, declaratory judgments do not end in specific orders

    that authoritatively effect the situation at hand; there is no

    operative command within the judgment.80

    While there is little observable effect of obtaining a

    declaratory judgment, it can have a significant impact on the

    parties involved. For instance, in a situation where an

    individual wishes to chop down trees for firewood in an area

    where ownership is disputed between himself and a neighbor,

    obtaining a declaratory judgment in his favor would assure the

    individual that he would face neither civil nor criminal

    penalties for chopping down the trees.81

    A declaratory judgment can be a double-edged sword,

    however. While a declaratory judgment can provide peace of mind

    and support for performing one action, performing another action

    that is prohibited in a declaratory judgment can result in much

    harsher enforcement of an actual judgment, due to the willful or

    reckless disregard of the notice provided by the declaratory

    judgment.

    Although declaratory judgments deal with specific

    situations in an almost hypothetical manner, there is still a

    requirement of ripeness similar to regular cases. In federal

    cases, the courts use a refined ripeness test, examining: 1)

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    the adversity of the parties interests; the conclusiveness of

    the judgment; and 3) the utility of the judgment.82, 83

    Declaratory remedies are usually used before a harmful

    action, (or inaction), takes place. In the case of the seat

    shortages in Super Bowl XLV, the harmful action has already

    taken place. The cases currently in the court system are

    regular civil cases; there would be no purpose to seek a

    declaratory remedy at this point.

    CONCLUSION

    While the ultimate issue of the seat shortage of Super Bowl

    XLV will hinge on the parties claims and the underlying

    substantive law, most of the issues involving remedies and

    damages resulting from that issue have been discussed. Of all

    the principles and concepts discussed, it is probable that the

    following will occur: 1) the remedies used in this case will

    originate out of common law, not statutory law; 2) both legal

    and equitable remedies will be available; 3) the remedies will

    be substitutional in nature, not specific; 4) damages will be

    available as a remedy, and will almost certainly include actual

    damages, probably include reliance damages, possibly include

    special, consequential, expectation, and punitive damages,

    probably not include double or treble damages (unless awarded as

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    a punitive measure), and will almost certainly not include

    general, nominal, permanent, temporary, or liquidated damages;

    5) there could possibly be some form of restitution; 6) there

    may be an injunction issued to aid the court in conducting the

    trial; 7) there will be no declaratory judgment, and obtaining

    one is meaningless as there are already multiple cases filed.

    Finally, as discussed supra, there are already two claims

    that have been filed on behalf of two groups. Although it will

    be some time before the cases are ultimately resolved, if the

    cases are decided at trial, it will be interesting to see how

    the remedies that are actually awarded compare to those asserted

    in this paper.

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    1 Wikipedia, Super Bowl XLVhttp://en.wikipedia.org/wiki/Super_Bowl_XLV2 Calvin Watkins, ESPN Dallas/Fort Worth - Super Bowl misses attendance markhttp://sports.espn.go.com/dallas/nfl/news/story?id=6096358

    3 Wikipedia, Cowboys Stadium http://en.wikipedia.org/wiki/Cowboys_Stadium4 Id.5 Wikipedia, List of current National Football League Stadiumshttp://en.wikipedia.org/wiki/List_of_current_National_Football_League_stadiums

    6

    CBSDWF.com,Texas Needs Late Rally to Save Super Bowl Week

    http://dfw.cbslocal.com/2011/02/05/texas-needs-late-rally-to-save-super-bowl-week/

    7 Mallory Simon and Divina Mims, CNN.com: Outdoor tickets could lead to SuperBowl attendance recordhttp://news.blogs.cnn.com/2011/01/19/outside-tickets-could-lead-to-super-bowl-attendance-record/

    8 CBS Sports, Some Super Bowl fans left without seats, to get triple refundshttp://www.cbssports.com/nfl/story/14654974/workers-still-installing-temporary-seats-at-cowboys-stadium

    9 Id.10 WFAA.com, Lawsuit filed over Super Bowl seating shortagehttp://www.wfaa.com/news/local/Suit-filed-over-Super-Bowl-seat-problem-115647324.html

    11 CBS Sports, Some Super Bowl fans left without seats, to get triple refundshttp://www.cbssports.com/nfl/story/14654974/workers-still-installing-temporary-seats-at-cowboys-stadium

    12Id.13Id.14Id.15Id.16Laffin v. National Football League, 2011 WL 1396887 (N.D. Texas, Dallas Div.April 12, 2011).

    17Simms v. Jones, et al., Civ. Action No. 3:11-CV-0248-M (N.D. Texas, Dallas Div.Feb. 8, 2011).

    18 William Blackstone, Commentaries on the Laws of England23 (1771).19Lowery v. Mountain Top Indoor Flea Mkt., Inc., 699 So. 2d 158 (Ala. 1997).20

    Douglas Laycock, Modern American Remedies Cases and Materials, 15, 118 (2010).21Brunswick Corp. v. Pueblo Bowl-O-Mat, 429 U.S. 477 (1977).22 Douglas Laycock, Modern American Remedies Cases and Materials, 6 (2010).23 J.H. Baker, An Introduction to English Legal History38 (2002).24 Timothy S. Haskett, The Medieval English Court of Chancery14 Law & Hist. Rev.245 (1996).

    25 Ewan McKendrick, Contract Law451 (2007).26 Alastair Hudson, Equity and Trusts 41 (2009).27 William Lindsay Carne, A Sketch of the History of the High Court of Chanceryfrom the Chancellorship of Wolsey to That of Lord Nottingham13 Va. L. Reg. 607(1928).

    28 A.H. Manchester, Modern Legal History128 (1980).29Fry v. Porter, 86 Eng. Rep. 898 (1670).

    30 Douglas Laycock, Modern American Remedies Cases and Materials, 6 (2010).31Id.32Id.33Id.34 Kevin Armstrong, NYDaily News.com NFL increases its settlement offer tofootball fans who had tickets but missed Super Bowl XLV

    http://articles.nydailynews.com/2011-02-16/sports/28619579_1_michael-avenatti-super-bowl-xlv-football-fans

    35 Aaron Wilson, National Football Post NFL trying to remedy Super Bowl ticketsnafu http://www.nationalfootballpost.com/NFL-trying-to-remedy-Super-Bowl-ticket-

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    snafu.html36 Douglas Laycock, Modern American Remedies Cases and Materials, 5 (2010).37Id.38 James M. Fischer, Understanding Remedies 4 (2006).39Id.40Id.41 Jessica Freiheit, The Breakdown of Heirarchy: Damages at Law versus Damages inEquity

    27 Man. L.J. 189 (2000).42 James M. Fischer, Understanding Remedies 5 (2006).43Id.44Blacks Law Dictionary416 (8th ed., West 2004).45Id.46Id. at 417.47Id. at 419.48Id. at 416.49Id. at 417.50Id. at 419.51Id. at 418.52Id.53Id.

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