EarthInfo, Inc. v. Hydrosphere Resource Consultants, Inc.

In January 1990, respondent, Hydrosphere Resource Consultants, Inc. (Hydrosphere), filed this action against petitioner, Earthlnfo, Inc. (Earthlnfo), seeking to rescind the parties’ software development contracts due to Earthlnfo’s failure to make royalty payments. The trial court determined that Earthlnfo had breached its contracts with Hydrosphere, ordered the contracts rescinded, and ordered that Earthlnfo repay to Hydrosphere all the net profits it realized as a result of its breach. The court of appeals affirmed the trial court.

We granted certiorari to determine (1) whether the court of…