Budge v. Post
United States Court of Appeals for the Fifth Circuit
643 F.2d 372 (5th Cir. 1981)
Tennis champion Don Budge (plaintiff) signed a five-year contract with Troy Post (defendant) to work as a tennis professional at Post's clubs and resorts; Post terminated the contract early, claiming Budge failed to perform, and Budge sued for breach, arguing Post had breached first by failing to pay and wrongfully terminating. The judge instructed the jury to calculate damages as the present cash value of the remaining contract, but the jury's $353,800 award (monthly compensation times 58 remaining months, minus mitigation earnings) showed no sign of any present-value discounting, and the district court entered a larger judgment including living expenses; Post appealed.
Whether a jury's award of future contract damages must be discounted to reflect present cash value when paid in a lump sum today, rather than awarded at full future face value.