Raymond Weil, S.A. v. Theron

Citation. 585 F. Supp. 2d 473 (S.D.N.Y. 2008)

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Citation585 F. Supp. 2d 473 (S.D.N.Y. 2008)

Brief Fact Summary.

Raymond Weil, S.A. sued CharlizeTheron (Theron) for breach of contract after Theron was photographed wearing a Christian Dior watch to a press conference and the photos were used by a competitor.

Synopsis of Rule of Law.

A contract may permit a party to cure a breach of contract before the non-breaching party can sue over the breach.

Points of Law - Legal Principles in this Case for Law Students.

Rescission is permitted if the breach is material and willful, or, if not willful, so substantial and fundamental as to strongly tend to defeat the object of the parties in making the contract.

View Full Point of Law

Raymond Weil, S.A. (RW) contracted with Denver and Delilah Films (DDF) to use CharlizeTheron’s (Theron) images to advertise RW’s watches. The contract prohibited Theron from wearing anyone else’s watches or in public or advertising for any other jewelry company during the length of the agreement. The contract allowed each party five days to cure upon notification of a breach. RW sued Theron (Theron) for breach of contract after Theron was photographed wearing a Christian Dior watch to a press conference and the photos were used by a competitor. Both RW and Theron filed motions for summary judgment.

Issue.

Whether a contract may permit a party to cure a breach of contract before the non-breaching party can sue over the breach?

Held.

Yes. RW’s motion for summary judgment was granted as to the breach. Theron being photographed wearing a Christian Dior watch could not be cured because photos of Theron using a competing product was used by the competitor.

Discussion.

A provision to cure breach of contract fulfills the purpose of avoiding waste and protecting expectations in contract damages.