Remedial Choice In Informal Venture Partner Equity Disputes
Aggrieved venture contributors elect either specific performance for corporate equity or restitution of fair market service value when informal pacts fracture.
election of remedies
Meaning
Selection of a single course of legal action for a specific injury prevents a party from pursuing two inconsistent remedies. The election of remedies occurs when a claimant chooses one course of action, such as rescission of a contract, which then precludes them from seeking a different one like damages for breach. This principle prevents double recovery for a single loss and ensures fairness in the resolution of disputes.
It forces a party to commit to a strategy early in the legal process.
Procedural Limitation
Restriction of options is the core function of the doctrine. Once a party makes an election of remedies and the other side acts upon that choice, the selection becomes binding. This prevents a plaintiff from switching tactics midway through a case to gain an unfair advantage.
It provides the defendant with a level of certainty about the potential exposure.
Contractual Enforcement
Agreements often specify the types of relief available to the parties in the event of a failure to perform. When a breach occurs, the election of remedies governed by the contract dictates the next steps. Parties must weigh the benefits of immediate termination against the pursuit of long term financial compensation.
The record of this choice is found in formal notices sent between legal counsel.
Conflict Resolution
Efficiency in the legal system is maintained by narrowing the scope of active disputes. An effective election of remedies simplifies the task for the trier of fact. It reduces the time and cost associated with complex litigation.
Finality is achieved more quickly when the path to resolution is clearly defined.