Analysis of lou gehrig's farewell speech
Vanderbilt University v. DiNardo C.A.6 (Tenn.),1999. 1999 FED.APP. 0135P
United States Court of Appeals,Sixth Circuit. VANDERBILT UNIVERSITY, Plaintiff-Appellee,
v. Gerry DiNARDO, Defendant-Appellant.
No. 97-5935.
Argued Oct. 27, 1998. Decided April 14, 1999.
University brought state court action against its former head football coach, seeking liquidated damages for coach's alleged breach of employment contract. Former coach removed action to federal court. The United States District Court for the Middle District of Tennessee, Robert L. Echols, J., 974 F.Supp. 638, entered summary judgment in fa- vor of university. Former coach appealed. The Court of Appeals, Gibson, Circuit Judge, sitting by designation, held that: (1) liquidated damages pro- vision was not unenforceable penalty; (2) university did not waive its right to liquidated damages; and (3) addendum extending coach's five-year employ- ment contract for two years extended contract's li- quidated damages provision.
Affirmed in part, reversed in part, and remanded.
Nelson, Circuit Judge, concurred in part, dissented in part, and filed opinion.
Clay, Circuit Judge, concurred in part, dissented in part, and filed opinion.
West Headnotes
[1] Damages 115 80(1)
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k80 Proportion of Sum Stipulated to
Actual Debt or Damage 115k80(1) k. In General. Most Cited
Cases Liquidated damages provision of head football coach's contract, providing that coach upon resign- ing would pay university amount equal to number of years left on his contract multiplied by his annu- al salary, was not a penalty so as to be unenforce- able under Tennessee law, where contract stated that university wanted five-year contract because long-term commitment was important to uni- versity's desire for stable football program, indicat- ing that parties agreed that coach's resignation would result in university suffering damage beyond cost of hiring replacement coach.
[2] Damages 115 76
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k76 k. In General. Most Cited Cases
Under Tennessee law, contracting parties may agree to the payment of “liquidated damages,” which refers to an amount determined by the parties to be just compensation for damages should a breach occur.
[3] Damages 115 76
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k76 k. In General. Most Cited Cases
“Penalty,” for purposes of Tennessee law principle that liquidated damages provision will not be en- forced if stipulated amount constitutes a penalty, is designed to coerce performance by punishing de- fault.
[4] Damages 115 80(1)
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations
174 F.3d 751 FOR EDUCATIONAL USE ONLY Page 1 174 F.3d 751, 134 Ed. Law Rep. 766, 14 IER Cases 1702, 1999 Fed.App. 0135P
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115k80 Proportion of Sum Stipulated to Actual Debt or Damage
115k80(1) k. In General. Most Cited Cases In Tennessee, a provision will be considered one for liquidated damages, rather than an unenforce- able penalty, if it is reasonable in relation to the an- ticipated damages for breach, measured prospect- ively at the time the contract was entered into, and not grossly disproportionate to the actual damages.
[5] Damages 115 76
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k76 k. In General. Most Cited Cases
Under Tennessee law, any doubt as to the character of a liquidated damages contract provision will be resolved in favor of finding it a penalty.
[6] Damages 115 80(1)
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k80 Proportion of Sum Stipulated to
Actual Debt or Damage 115k80(1) k. In General. Most Cited
Cases Under Tennessee law, reasonableness of liquidated damage provision is measured at time the parties entered the contract, not when the breach occurred.
[7] Damages 115 85
115 Damages 115IV Liquidated Damages and Penalties
115k84 Operation and Effect of Stipulations 115k85 k. In General. Most Cited Cases
Under Tennessee law, university did not waive its right to liquidated damages under its employment contract with head football coach when it granted him permission to discuss coaching position with another university, where permission did not extend to authorizing coach to terminate his current con-
tract, current contract required coach to ask for per- mission to speak with another school, and athletic director testified that granting a coach permission to talk to another school about a position was a pro- fessional courtesy.
[8] Damages 115 76
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k76 k. In General. Most Cited Cases
Under Tennessee law, a party may not recover li- quidated damages when it is responsible for or has contributed to the delay or nonperformance alleged as the breach.
[9] Damages 115 78(1)
115 Damages 115IV Liquidated Damages and Penalties
115k75 Construction of Stipulations 115k78 Form and Language of Instrument
115k78(1) k. In General. Most Cited Cases Under Tennessee law, addendum extending head football coach's five-year employment contract with university for two years extended contract's liquid- ated damages provision, even though original con- tract provided that liquidated damages section was limited to “entire term of this five-year contract” and addendum did not specifically extend liquid- ated damages provision; language of addendum read in its entirety provided for wholesale extension of entire contract.
[10] Contracts 95 143(1)
95 Contracts 95II Construction and Operation
95II(A) General Rules of Construction 95k143 Application to Contracts in Gen-
eral 95k143(1) k. In General. Most Cited
Cases Under Tennessee law, the rights and obligations of
174 F.3d 751 FOR EDUCATIONAL USE ONLY Page 2 174 F.3d 751, 134 Ed. Law Rep. 766, 14 IER Cases 1702, 1999 Fed.App. 0135P
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contracting parties are governed by their written agreements.
[11] Contracts 95 143(1)
95 Contracts 95II Construction and Operation
95II(A) General Rules of Construction 95k143 Application to Contracts in Gen-
eral 95k143(1) k. In General. Most Cited
Cases
Contracts 95 176(2)
95 Contracts 95II Construction and Operation
95II(A) General Rules of Construction 95k176 Questions for Jury
95k176(2) k. Ambiguity in General. Most Cited Cases Under Tennessee law, when agreement is unam- biguous, the meaning is a question of law, and it should be enforced according to its plain terms.
[12] Federal Civil Procedure 170A 2492
170A Federal Civil Procedure 170AXVII Judgment
170AXVII(C) Summary Judgment 170AXVII(C)2 Particular Cases
170Ak2492 k. Contract Cases in Gen- eral. Most Cited Cases Issues of material fact existed as to whether, under Tennessee law, approval of head football coach's attorney was condition precedent to enforceability of addendum extending coach's contract with uni- versity by two years, precluding summary judgment in university's contract action against coach seeking liquidated damages. Fed.Rules Civ.Proc.Rule 56(c), 28 U.S.C.A.
[13] Federal Courts 170B 817
170B Federal Courts 170BVIII Courts of Appeals
170BVIII(K) Scope, Standards, and Extent
170BVIII(K)4 Discretion of Lower Court 170Bk817 k. Parties; Pleading. Most
Cited Cases District court's grant of leave to amend pleading is reviewed under an abuse of discretion standard.
[14] Contracts 95 221(1)
95 Contracts 95II Construction and Operation
95II(E) Conditions 95k221 Conditions Precedent in General
95k221(1) k. In General. Most Cited Cases Under Tennessee law, parties may accept terms of a contract and make the contract conditional upon some other event or occurrence.
*752 Thomas J. Piskorski (argued and briefed), David E. Metz (briefed), Seyfarth,*753 Shaw, Fair- weather & Geraldson, Chicago, Illinois, for De- fendant-Appellant. William N. Ozier (argued and briefed), J. Davidson French (briefed), Bass, Berry & Sims, Nashville, Tennessee, for Plaintiff-Appellee.
Before: NELSON, CLAY, and GIBSON, Circuit Judges.FN*
FN* The Honorable John R. Gibson, Cir- cuit Judge of the United States Court of Appeals for the Eighth Circuit, sitting by designation.
GIBSON, J., delivered the opinion of the court. NELSON (pp. 760-761) and CLAY (pp. 761-762), JJ., delivered separate opinions concurring in part and dissenting in part.
GIBSON, Circuit Judge. Gerry DiNardo resigned as Vanderbilt's head foot- ball coach to become the head football coach for Louisiana State University. As a result, Vanderbilt University brought this breach of contract action. The district court entered summary judgment for
174 F.3d 751 FOR EDUCATIONAL USE ONLY Page 3 174 F.3d 751, 134 Ed. Law Rep. 766, 14 IER Cases 1702, 1999 Fed.App. 0135P
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