World of Boxing, LLC v. King - 634 F. App'x 1 (2d Cir. 2015)

Rule:

Under New York law, a plaintiff may recover damages based on his reliance interest, including expenditures made in preparation for performance or in performance, less any loss that the party in breach can prove with reasonable certainty the injured party would have suffered had the contract been performed. 

Facts:

Defendants Don King and Don King Productions, Inc. (collectively "King") appealed from a summary award of $990,811.19 in damages, as well as pre- and post-judgment interest, to plaintiffs Vladimir Hrunov and Andrey Ryabinskiy, who do business as World of Boxing, LLC (collectively "WOB"). WOB sued for breach of a boxing contract resulting from King's boxer Guillermo Jones not being able to compete because he tested positive for a banned substance. King disputed both the summary determination of liability and the damage award. WOB cross-appealed the calculation of the damage award. 

Issue:

Was WOB entitled to be returned its expenditures in reliance on the contract that was breached?

Answer:

Yes.

Conclusion:

The court held that the district court did not err in denying certain of King’s discovery requests pertaining to liability, as King failed to demonstrate either below or on appeal how the requested discovery would shed light on any disputed issue of fact material to contract liability. WOB was entitled to be returned its expenditures in reliance on the contract, which included all money placed into the escrow account.