Problem 25.2

Mina is a second-year law student who is at the top of her class at an elite private university in the Northeast. As such, she is offered 12-week summer clerkships by many of the world's top law firms. She in especially interested in cutting edge work for entertainment industry clients, and so takes a clerkship at the very prestigious mid-sized Los Angeles firm of Wolfram & Hart. She graciously turns down all of her other offers. Two weeks before the clerkship is to start, Wolfram & Hart informs her that it will not need her for the summer. Mina remonstrates with them, pointing out her reliance on their promise. The hiring partner tells her it's just tough luck, baby. "That's Hollywood, kid." Mina sues, seeing damages for the $60,000 she was to have made over those 12 weeks. (a) Assume that Mina cannot get another private firm legal position for the summer. Instead, she makes $3,600 as a research assistant for a professor. What remedies does she have? (b) Assume that Wolfram & Hart instead offers to have her work in the mailroom at the same pay, telling her she can list on her resume that she "worked on many matters" for the firm during the summer. If she turns this down, has Mina failed to mitigate her damages? (c) Assume instead that Sterling & Bond, one of New York's most prestigious firms, hears that Mina is available and offers her a job in its New York at the same pay she would have received at Wolfram & Hart. She does not want to practice in New York. If she turns it down, has she failed to mitigate her damages?

Problem 26.3 In April 20X0, ex-NBA player Carlisle Richards and regional school Kings State University ("KSU") executed an employment agreement making Richards the head men's basketball coach at KSU for a period of four years with an option for a fifth year. The contract contained a liquidated damages provision that states: Richards recognizes that his promise to work for the University for the entire term of this contract is of the essence of this contract with the University. Richards also recognizes that the University is making a highly valuable investment in his continued employment by entering into this contract and its investment would be lost were he to resign or otherwise terminate his employment with the University prior to the expiration of this Contract. Accordingly, he will pay to the University as liquidated damages an amount equal to his base and supplemental salary, multiplied by the number of years (or portion(s) thereof) remaining on the contract. Richards was highly successful in his first two seasons at KSU, booth years reaching the "Sweet 16" semifinals in the NCAA Tournament. In April 20X2, at the coach's request, Richards and Kings State renegotiated and executed a modified employment agreement for a term of five years that increased his salary and supplemental salary by a total of $100,000.00 for a total annual salary of $300,000.00. The liquidated damages clause in the modified agreement was identical to the original version. In March 20X3, Richards led his team even further, to the NCAA "Final Four." A few days after KSU's elimination by the eventual national champion, Richards quit his position at KSU and accepted the same position at Behemoth State University a much larger and more prestigious schoolfor a total annual salary of $700,000.00. KSU promptly sued Richards, claiming liquidated damages of $1,200,000. What will both sides argue and who should prevail?