Liquidated Damages

News & Analysis as of

U.K.’s Revised Law on Liquidated Damages Clauses Could Mean Similar Changes for Commercial Contracts in Canada

Last week, the U.K. Supreme Court (UKSC) changed the law on liquidated damages clauses (LDCs), giving parties greater freedom to decide on damages for contractual breaches. The case may cause Canadian courts to revise the law...more

Supreme Court Ruling on Penalties: A Genuinely Commercial Approach

The Supreme Court has clarified and restated the scope of the English law rule against penalties. This important decision will have a far-reaching impact on commercial parties’ assessment of whether contract provisions...more

Liquidated Damages Clause in Employment Contract Backfires on Quebec Employer

Under article 2091 of the Civil Code of Quebec (the “C.C.Q.”), employers can terminate employment contracts of indeterminate length so long as the employee is given reasonable notice or an indemnity in lieu of reasonable...more

New York State Employers Face Strict New Equal Pay and Sex Discrimination Laws

New York Governor Andrew Cuomo recently signed a series of bills entitled the “Women’s Equality Agenda” that significantly amend the State’s equal pay, sex discrimination, harassment and other laws to provide additional...more

Proving Contractor Licensure in California. The Tribe Has Spoken.

As I mentioned in an earlier post, in California you must “prove” you’re a licensed contractor in a construction case. But in whose hands are you entitled to place your fate  – the judge or the jury?...more

Consequential Loss in Energy Commodity Contracts

Energy commodity contracts can be of significant monetary value, and their breach may expose the defaulting counterparty to significant liabilities for contractual damages. In considering potential liabilities, contracting...more

Corporate Divorce Series: Disparage-Me-Not

If you have been following my corporate divorce series, you may have read the “Break Up” piece where I advised newly terminated folks to keep their cool if they are unexpectedly fired because their post-firing behavior might...more

Nursing Mother's USDOL Claim Settled

The U.S. Labor Department reports that a temporary-staffing employee has received $1,152 in back-wages and unspecified "other damages" for what it contended was a violation of the federal Fair Labor Standards Act's Section...more


TRUE LEASE V. DISGUISED SECURITY INTEREST - The characterization of a transaction as either a true “lease” or a secured transaction is likely to impact the putative lessor’s rights and remedies both with respect to the...more

Leveraging employment restraints to protect business assets

When a key employee subject to an employment restraint leaves a business to join a competitor, fast decisions need to be made to protect client goodwill or guard against misuse of confidential information....more

Contractor Given a Wake-Up Call for Using a "Sham" RMO/RME

Two weeks ago we wrote about a disgorgement case winding its way through the courts where a contractor who let its license lapse after assigning its contract to a related but properly licensed entity was still facing...more

Insurance News, Summer 2015

The U.S. Senate Commerce Committee asked Michael Menapace to testify as an expert witness at a hearing called by the Subcommittee on Consumer Protection, Product Safety, Insurance and Data Security entitled, "Examining the...more

Indiana Employment Law Update: 5 Changes to Laws You Should Know

A number of significant changes to Indiana employment law took effect on July 1, 2015. These changes affected employer’s obligations in areas such as hiring, wages, discrimination, and termination. If employers have not...more

Second Circuit Speaks: No Private Settlements of FLSA Actions

In Cheeks v. Freeport Pancake House, Inc., the Second Circuit held that without the approval of a district court or the U.S. Department of Labor, parties cannot secure a stipulation of dismissal with prejudice of an FLSA...more

Are Liquidated Damages Down the Drain in California?

Liquidated damages can provide parties added incentive to perform all types of contracts, including commercial real estate contracts. But are they enforceable in California? The short answer is that they’re presumed to be...more

PilieroMazza Legal Advisor - Third Quarter 2015

NOW’S THE TIME FOR SBA TO EXPAND WOSB-ELIGIBLE INDUSTRIES - On May 1, 2015, the U.S. Small Business Administration issued a proposed rule to amend its regulations to implement Section 825 of the National Defense...more

Drafting Valid Damages Provisions in Settlement Agreements

Often thought of as a formality that should take minimal effort and expense to prepare, the drafting of the settlement agreement can quickly turn into a “devil in the details” scenario. One or more of the parties to the...more

Indiana Wage Law Amendments Become Effective on July 1, 2015

Two significant changes to Indiana’s wage laws will become effective on Wednesday, July 1, 2015. First, liquidated damages will no longer be mandatory when an employer violates Indiana’s Wage Payment or Wage Claims statutes....more

The Best Defense Against an FMLA Lawsuit: Training!

Quick. Answer this: if one of your employees tells his supervisor that he needs surgery and will miss 2-3 weeks of work, do your managers know what to do? Do they call the employee’s surgeon? (NO!) Do they know who to speak...more

Choice of Law and Liquidated Damages

Two weeks ago, I participated on a panel for a webinar on liquidated damages with three other panelists from New Jersey, Florida and Texas. In preparing with the other panelists, I was surprised to learn that while there are...more

Class Action Plaintiffs Continue Attack on Residential Rent Late Fees

Plaintiffs’ lawyers have recently taken aim at REITS and other owners and managers of multi-family property portfolios - filing class action lawsuits seeking damages and to invalidate late fee charges imposed under...more

Interaction between on-demand bonds and the underlying contract revisited by the English High Court

Introduction - From our previous alerts, which can be found here and here, we know that bonds and guarantees are complex instruments, the consequences of which depend not on what they are called, but their terms, the...more

Liquidated Damages Can Create a Cap on What You Can Recover

When thinking about liquidated damages, most people focus on the fact that a properly drafted liquidated damages provision will enable the non-breaching party to recover a set amount without ever having to prove how much, if...more

Contracts Can Impose High Liquidated Damages in Some Cases

A few volumes ago, we wrote about the scope and enforceability of liquidated damages provisions in contracts, indicating that these provisions may only be enforced by courts where (i) the damages amount is not so unreasonably...more

Wage and Hour Basics Series: Penalties for FLSA Non-Compliance

Periodically this year, we have discussed some of the fundamentals of wage and hour law, starting with a general review of the white collar exemptions. We will continue to periodically review some of the more fundamental...more

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