Cases

An unsuccessful bidder sought contract and tort damages from a corporation whose subsidiary had entered into contract with bidder to team in making bid, after the subsidiary withdrew from the agreement and the contract was awarded to another subsidiary of corporation.

The case was removed from state court.

Following reversal and remand of summary judgment for the corporation and its subsidiaries, the district court entered judgment on jury verdict for unsuccessful bidder after reducing damage award. Both sides appealed.

The Court of Appeals held that: (1) under California law, damages for loss of other contracts were too speculative: (2) full compensatory damages were available for breach of agreement; (3) evidence of “independent wrongfulness” was sufficient to find tortious interference with prospective economic advantage; and (4) reduced award of punitive damages was not excessive.

Affirmed.