DePalma v. Westland Software House

Opinion

JOHNSON, J.

This is a case of first impression in California.

The principal issue before us is whether evidence of tax benefits which a plaintiff may have received because of the expense of a contract should be considered in determining compensatory damages for the defendant’s breach of that contract. For the reasons stated below, we hold that such evidence is irrelevant.

Facts and Proceedings Below

In 1980 the parties entered into contracts by which the respondent physician purchased and licensed computer hardware and software from the appellant for $50,009.40. Appellant, a computer…