A key obstacle to a settlement in the Rams relocation lawsuit: a difference of opinion over whether NFL relocation fee and increased franchise value from LA move are recoverable damages under any claim. With it, a multi-billion dollar case. Without it, barely a nine-figure case.
The only cause of action under which either component might be recoverable is unjust enrichment. But wouldn’t that create a windfall for the City? Also, is the franchise value increase attributable to the LA move readily ascertainable? Or is it too speculative to be awarded?
One principle to keep in mind on unjust enrichment: the notion that a party may not be put in a better condition than it would have been had the wrong not been committed. Wouldn't that be the case though if the City recovered the increased value of the Rams franchise ($3B+)?
Maybe they fit better within a punitive damages analysis, provided that the actual damages in the case are high enough to justify such an award. Under SCOTUS and MO precedent, the ratio of PD to actual damages would likely need to be below 10:1 to satisfy due process.
While the fraudulent misrepresentation claim is by far the City's strongest, it also has the lowest damage potential of all 4 causes of action because the City's recoverable damages would be monies spent in reliance on those statements (roughly $17M). Disgorgement not available.
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