Opinion ID: 453219
Heading Depth: 2
Heading Rank: 4

Heading: Savings Made Possible

Text: 36 Todd's final argument is that the district court erred in offsetting the balance due to Todd on the repair contract from Auto's total recovery. Todd argues that, because all three repairers are liable to Auto in solido, offsetting resulted in a windfall to Turbine Service and Gonzales at Todd's expense. We find no error. 37 In its original decision, the district court determined that the measure of damages for breach of contract should govern in this case. Todd I, supra, at 1304. We agreed on appeal. Todd II, supra, at 412. Under this measure, Auto was entitled to be put in the same position it would have occupied had the repair contract been performed. Damages were therefore computed by adding (1) the cost of repairs to have the LP turbine placed in the condition contracted for, (2) necessary expenses during down time of the vessel, (3) loss of profits during down time, and (4) costs and attorney's fees. 25 Todd I, supra, at 1304. An award of this sum, however, would have placed Auto in a better position than it would have been in if the contract had not been breached, because the breach discharged Auto's duty to pay the balance due under the contract. 26 Thus, the amount of the contract price that had not yet been paid was deducted from the damages as savings made possible. Specifically, $1,142,446--the total of LP turbine repair damages, loss-of-use damages, and out-of-pocket damages--were reduced by $174,813--the balance due on the repair contract--to result in net recoverable damages of $967,633. Todd I, supra, at 1311. On remand, the district court, pursuant to our directions, lowered the loss-of-use damages from $645,000 to $498,000, thereby further reducing net damages to $820,663. 38 In light of the above, that Todd's argument is based on a false premise is readily apparent. Contrary to its contentions, Todd is not entitled to recover the balance due under the contract. As the district court made clear in Todd I, this obligation was discharged by Todd's breach. Rather, the district court considered the balance due on Todd's repair contract in computing Auto's damages solely in order to ensure that Auto received no more than its expectation interest. 27 Because the repairers were obligated in solido to pay this expectancy, the district court correctly subtracted the balance due under the contract from the amount of their total liability.