Written by attorneys · grounded in primary & secondary sources — see below
A sum paid out or the act of disbursing funds.
Sources & Authorities
How it applies
Common Examples
6
Reliance Damages After Breach
Edward Everett paid architects and surveyors to prepare site plans for a warehouse project after signing a supply contract with Echo Systems. Echo Systems later refused to deliver materials. Edward Everett recovered the amounts paid to the professionals as part of his reliance interest because those payments were made in preparation for performance.
Vested Rights From Construction Spending
Elise Everly obtained a building permit and spent substantial sums grading land and pouring foundations for a retail center. The city then changed the zoning to prohibit the use. Elise Everly established a vested right to complete the project because the good-faith expenditures created inequity if the new restrictions applied.
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Cases
Statutes
Uniform Acts
Common Law
Restatements
Dictionaries
Constitutional Accounting Of Public Funds
Congress appropriated funds for various federal programs. The Treasury was required to publish a regular statement and account of all receipts and expenditures of public money. The constitutional clause thereby mandated transparent reporting of every expenditure drawn from the Treasury.
Tenant Recovery Of Foreseeable Costs
Esme Ellington installed custom shelving and lighting in leased retail space after the landlord promised quiet enjoyment. The landlord later failed to deliver possession. Esme Ellington recovered the amounts spent on the improvements because the landlord could have foreseen those expenditures at the time the lease was made.
Recovery Of Litigation Expenses From Tortfeasor
Evelyn Ellison defended a third-party suit after Enigma Technologies negligently damaged her equipment and caused a separate claim against her. Evelyn Ellison recovered reasonable attorney fees and other costs incurred in that earlier action because the tort required her to protect her interests against the third person.
Receiver Application Of Rental Income
Evergreen Bank as junior mortgagee obtained a receiver who collected rents from an office building. The receiver first paid real-estate taxes and reasonable maintenance costs from those funds. Only the remaining balance could be applied to the junior obligation.
Common questions
Frequently Asked
4
What types of payments qualify as recoverable expenditures in contract reliance damages?+
Payments made in preparation for performance or during performance count when they are part of the reliance interest. The breaching party may reduce recovery by proving with reasonable certainty any loss the injured party would have suffered even if the contract had been performed.
How do substantial expenditures create vested rights against later zoning changes?+
A landowner acquires a vested right to complete a development when good-faith reliance on a permit or existing zoning leads to substantial expenditures or other changes in position. Depriving the right would then be inequitable, and jurisdictions differ on whether a valid permit plus construction or a balancing test is required.
When may a tenant recover pre-default expenditures from a landlord?+
A tenant may recover the loss from reasonable expenditures made before the landlord's default if the landlord could have foreseen those expenditures when the lease was signed. Recovery is available as damages for the landlord's failure to fulfill lease obligations.
Under what circumstances can a party recover expenditures incurred in earlier litigation caused by another's tort?+
A party required by another's tort to bring or defend an action against a third person may recover reasonable compensation for loss of time, attorney fees, and other expenditures incurred in that earlier action.
347 U.S. 483, 74 S. Ct. 686, 98 L. Ed. 873 (1954)Remedies
…education is perhaps the most important function of state and local governments. Compulsory school attendance laws and the great expenditures for education both demonstrate our recognition of the importance of education to our democratic society. It is required in the performance of our most basic public responsibilities, even…