Brief a case Essay Example | Topics and Well Written Essays - 750 words - 1

Brief a case - Essay Example Once the work under the second contract was completed the defendant called the plaintiff’s computer operator once monthly to enquire as to how the computer system was working and asked for the claim number had been arrived at. The software program modified by the defendant contained insurance claims by the plaintiff’s clients and each claim was identified by a specific number. As it turned out the computer system crashed when it reached claim number 56789. The crash had been orchestrated by the defendant who had been losing clients. The defendant had deliberately and secretly entered a â€Å"conditional statement† in the plaintiff’s software program which directed the program to stop working when it reached claim number 56789. Satisfied that the plaintiff had already paid the defendant more than enough money for his services, the plaintiff hired another expert to fix the problem. It was this expert who discovered the conditional statement entered by the de fendant. In any event, the second expert fixed the plaintiff’s computer and was paid US$7,000 for his troubles. The plaintiff subsequently sued the defendant for breach of contract with respect to the second contract. The plaintiff sought compensatory and punitive damages against the defendant. Specifically, the plaintiff sought US$18,000 in punitive damages and US$7,000 in damages, the amount paid to the second expert to remedy the problem deliberately created by the defendant. RULE: As a general rule in the law of contract, punitive damages are not awarded. However, under breach of contract claims, punitive damages may be awarded where the award is necessary for deterring â€Å"morally culpable conduct† (Halpin v Prudential Ins. Co. 48 N.Y. 2d 906). Although the plaintiff specifically requested punitive damages, punitive damages can be awarded even when it is not