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1. Who is suing who for what?

(These should be functional


descriptions, like “seller” is suing “buyer,” or “employee” is
suing “employer.” The remedy should be described and the
legal basis of the claim.)
ANSWER:
Hollywood Fantasy Corp., the plaintiff and the client herein, is suing Zsa Zsa
Gabor, the defendant or the contractor, for breach of contract. The Plaintiff wants an
award of damages for the breach committed by the defendant.

2. What is the basis of the dispute? How did it start and why
did it escalate to litigation?
ANSWER:
The basis of the dispute is the Contract for Services executed by and between Zsa
Zsa Gabor, the defendant, and Hollywood Fantasy Corp., the plaintiff. The contract was
perfected, and two weeks before the fantasy vacation event, the defendant cancelled her
appearance. Because of this, Hollywood Fantasy went to court and sued her for fraud
and breach of contract.

3. What happened previously in the lower court or previous


hearings?
ANSWER:
The Trial Judge found that Ms. Gabor and Hollywood Fantasy had reached a
contract. The Jury found that Ms. Gabor had breached that contract. $100,000 for the
breach, as well as $100,000 for fraud.
The case was then elevated to the District court where it set aside the jury's fraud
verdict for lack of evidence. It then affirmed $100,000 on the breach of contract, plus
attorneys' fees and post-judgment interest.
Hence, it went all the way up to the Court of Appeals where it affirmed the district
court's judgment as to liability; reversed the district court's damages award (from $100K
to $57,500 [out of pocket expenses]); and rendered judgment for a lesser amount of
damages.

4. What exactly is the issue before the court?

ANSWER:
Whether Hollywood Fantasy can recover compensatory damages based of speculation
and uncertainty?

5. What claims are the plaintiff making and why?


ANSWER:
The plaintiff claims the following:
1. There was a contract between the plaintiff and the defendant;
2. Defendant was not justified in cancelling the contract;
3. Defendant should be made to pay damages for the breach and damages for the
fraud.

6. What claims are the defendant making and why?


ANSWER:
The defendant claims the following:
1. There was no contract between the plaintiff and the defendant;
2. Defendant was justified in cancelling the contract
3. Defendant should not be made to pay damages for any breach because there was
no any, and that she should not pay damages for fraud because her entering into
and cancelling the contract were proper and not tainted with fraud, deceit, or ill
intent.

7. How did the court rule on each claim and why?


ANSWER:
1. The court found that there was a valid contract for services between the plaintiff
and the defendant because of the 14 paragraph letter confirming agreement
produced.
2. The court ruled that the defendant was not justified in cancelling the contract
because her role in the movie she claimed to have been the reason for the
cancellation is too minimal. She had only a 14-second cameo. Thus, the court ruled
that defendant did not have a significant opportunity to have a valid reason to
cancel the contract. In addition, the preproduction of the movie never realized and
that the second movie was never made.
3. Mr. Saffir's testimony as to HFs out-of-pocket expenses is sufficient to support an
award of $ 57,500 for breach of contract, but not to support an award of $
100,000. The award of $ 100,000 is reversed in part on the basis that the
evidence disclosed in the record does not support compensatory damages
beyond $ 57,500.

8. What happens next: in court and/or out of court between the


parties?
ANSWER:
Defendant shall pay the amount of $57,500 to plaintiff in view of the decision rendered
by the Court of Appeals.