Properly Exercising the Right of First Refusal

It is common for commercial leases or certain real estate transactions to include a right of first refusal. The right of first refusal can be a valuable option for a party to hold and a worthy option for a party to bargain for and ultimately exercise. But, if a party exercises the right of first refusal, it does not mean that the third party that lost the transaction will be happy about it. Many times, they are not happy because it is perceived as a lost deal. When it comes to a right of first refusal: It is true that “[a] right...

26 October

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Election of Remedies Doctrine and Claims for Specific Performance and Breach of Contract

Posted by David Adelstein

in Trial Perspectives

In an earlier article, I talked about the election of remedies doctrine. The purpose of this election of remedies doctrine is to preclude the plaintiff from obtaining a windfall by double-recovering its damages under alternative (or mutually exclusive) theories of liability. If a plaintiff could double recover on mutually exclusive theories of liability based on inconsistent facts, then plaintiffs would recover double than what they are rightfully entitled to. That isn't fair! Before a trial court can apply the election of remedies doctrine, it must determine whether the remedies are factually consistent. A party may not obtain judgment for two remedies...