Chicago Coliseum Club v. Dempsey

Nature of the Case

This was a dispute over a boxing contract.

Facts

The Chicago Coliseum Club (P) made a contract with Dempsey (D) to promote a fight between Harry Wills and Dempsey. The plaintiff agreed to pay Dempsey $10 on signing, $300,000 on August 5, 1926, $500,000 more at least 10 days before the contest, 50% of any net profits over the sum of $2,000,000, and 50% of the net revenue derived from motion picture concessions or royalties. Dempsey also agreed not to engage in any boxing matches after and prior to the date of this match. Plaintiff also entered into an agreement with Wills to deposit $50,000 in escrow ten days before the fight date. When it came time to get insurance as required under the contract, Dempsey contended that there was no agreement and that he was scheduled to fight Tunney.

Plaintiff filed a bill to have Dempsey restrained from fighting Tunney. The court found that the contract was valid and granted the injunction. Plaintiff also sought damages against Dempsey for breach of contract.

Issue

Must compensation for damages be established by evidence such that there is a reasonable degree of certainty as to the existence of the damages being claimed?

Holding and Rule of Law

Yes. Compensation for damages must be established by evidence such that there is a reasonable degree of certainty as to the existence of the damages being claimed.

The plaintiff admits that its claims of gross receipts and estimated profits are incapable of commensuration and that he had no adequate remedy at law when he filed his action for injunctive relief. The success or failure of such an undertaking depends largely upon the ability of the promoters, the reputation of the contestants, and the conditions of the weather at and prior to the holding of the contest, the accessibility of the place, the extent of the publicity, the possibility of other and counter attractions and many other questions which would enter into consideration. Lost profits are not provable by the plaintiff. In addition, the expenses incurred prior to the exhibition with Wills and Weisberg are not compensable as they were not obtained in reliance upon the contract between the parties but were obtained before the signing of that agreement.

The costs incurred in restraining Dempsey are not recoverable in that there was no agreement for attorney fees between the parties. However, plaintiff is entitled to recovery of those expenses incurred in furtherance of performance of the contract such as the $10 fee, wages paid to architects, expenses for secretaries and the expenses of Hoffman going to Colorado for the physical exams.

Disposition

Reversed and remanded.