Gianetti v. Norwalk Hosp.,
AC 20197 (Conn. App. Ct. July 10, 2001)

A plastic surgeon sued a hospital, the chairman of the hospital's surgery department, the chief of staff of the hospital, the president of the hospital and the chief of plastic and reconstructive surgery seeking damages and an injunction to prevent the denial of reappointment to the hospital medical staff. The lower court denied the plastic surgeon's motion for a permanent injunction and awarded him nominal damages in the amount of one dollar. On appeal, the plastic surgeon argued that Connecticut should adopt the "lost volume seller" theory for contracts involving personal services.

The Appellate Court of Connecticut, adopting the "lost volume seller" theory, reversed the trial court decision. The appellate court ruled that the "lost volume seller" theory should be applied in cases in which a plaintiff can demonstrate that s/he "would and could have performed another contract simultaneously for the same time period that the breached contract would have run." The plastic surgeon was able to demonstrate that he would have entered into other profitable contracts. As a result, the appellate court ruled that the surgeon was entitled to more than nominal damages. However, despite adopting the "lost volume seller" theory for personal services, the appellate court upheld the lower court decision denying the permanent injunction because the plastic surgeon could receive an adequate remedy in monetary damages. The Appellate Court of Connecticut sent the case back to the trial court to determine damages in the amount of the net profits the plastic surgeon would have received during the year the contract was breached.