Hoffman v. L & M Arts Health System, Inc.

Hoffman (plaintiff) sold a valuable painting privately for $17.6 million through L&M (defendant) to buyer Martinez (defendant), under a sale agreement with a confidentiality clause meant to protect her reputation; years later, Martinez publicly auctioned the painting for roughly $31 million after declining Hoffman's offer to buy it back. Hoffman sued for breach of the confidentiality clause, and after the district court found a breach, a jury awarded her the difference between what she would have received in a public sale and the $17.6 million she actually got privately; on appeal, Hoffman alternatively sought restitution in the form of forcing Martinez to disgorge his profit from the public auction.