Bausch & Lomb, Inc. v. Bressler
United States Court of Appeals for the Second Circuit
977 F.2d 720 (2d Cir. 1992)
Bausch & Lomb (B&L) (plaintiff) paid Sonomed (defendant) $500,000 for a three-year exclusive worldwide right to distribute Sonomed's ophthalmic devices, later replaced by a five-year agreement covering a narrower territory. Before that second agreement ended, Sonomed began selling its own products directly within B&L's exclusive territory and then told B&L it would no longer fill any orders at all. B&L sued for breach and the district court found Sonomed liable; a jury awarded B&L $555,000, including the full $500,000 it had originally paid for its exclusive rights. Sonomed appealed the $500,000 portion of the award.
Whether restitution damages are available where an injured party cannot prove expectation damages.