As the cases discussed in this series show, judges and juries are no longer viewing management contract disputes as simple contractual matters. Beginning with Woolley, courts are now viewing all management contracts and even franchisor / franchisee agreements as establishing agency relationships subject to agency law. In simple contract cases punitive damages are usually not awarded. Contract law simply compensates the injured party. It does not punish the breaching party. Agency law, however, does allow for the awarding of punitive damages. As the recent Ritz-Carlton-Bali case has shown, punitive damages can be substantial.
