Chung v. Kaonohi Center Co. case brief

Chung v. Kaonohi Center Co.; (Sup. Ct. of HI, 1980); CB 88 n. 3; Notes 11

• Facts: P enters contract to operate Chinese fast food place in mall. Shortly before opening, D mall management notifies P of intention to breach in favor of more lucrative contract w/ 3^rd party. P tries to recover 10 years worth of profit – term of lease!
• Holding: New business rule rejected. Affirmed decision of $50k in emotional distress and $175k loss of future profits.
• Commentary: Court uses profits of replacement business (3^rd party) to establish damages, even though they were established and D was new. Court said “it would be grossly unfair to deny a P meaningful recovery for lack of a sufficient “track record” where the P has been prevented from establishing such a record by D’s actions.”