1. What are compensatory damages? What is the standard measure of compensatory damages?
2. In this case, what was the basis for Hallmark’s suit against Murley? How much did Hallmark seek to recover in the form of damages?
3. What were Murley’s arguments against the amount of damages that Hallmark requested?
4. Did the court award Hallmark the amount that it sought in damages? Why or why not?

Murley served as [Hallmark Cards, Inc.’s] vice-president of marketing from 1999 to 2002. In this capacity, she was responsible for product and business development, advertising, and research, and had access to confidential information including Hallmark’s business plans, market research, and financial information. In 2002, Hallmark eliminated Murley’s position as part of a corporate restructuring. Murley and Hallmark entered into a negotiated separation agreement which laid out the terms of Murley’s departure.