Summary of Kenford v. County of Erie
Court of Appeals of New York, 1989.
Facts: County of Erie (D) planned to build a domed stadium. P contracted to donate 178 acres of land to D for the construction of the stadium and in return got the lease and management rights to the stadium. The county agreed to commence construction of the stadium within 12 months. Later it turned out that the construction was going to cost D more than anticipated so the plans for the stadium were abolished.
Issue: Can P recover damages for lost anticipated appreciation in the value of its peripheral lands?
Rationale: In the case of Hadley v. Baxendale, the court held that damages which may be recovered by a party for breach of K are restricted to those damages which were reasonably foreseen or contemplated by the parties during their negotiations or at the time the K was executed. There is no evidence on record to demonstrate that the parties reasonably contemplated or would have contemplated that the D was undertaking a contractual responsibility for the lack of appreciation in the value of P’s peripheral lands in the event the stadium was not built. Therefore, P cannot recover for such damages.