News & Analysis as of

Liquidated Damages Breach of Contract

Venable LLP

Iamaleava v. Razorbacks: Are NIL Buyouts the Future of College Sports?

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When a party to a contract fails to fulfill its contractual obligations, the non-breaching party often can seek damages or restitution. However, in the world of name, image, and likeness (NIL), it may not be so simple. ...more

Gray Reed

Disrupted Operations – Owners Beware! – Part 2 (DAMAGES)

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Liquidated damages are intended to provide predictability to the owner and contractor as to the financial consequence of not completing a project in a timely manner. Since liquidated damages are intended to compensate the...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

Bowditch & Dewey

Liquidated Damages v. Actual Damages – Which Is the Better Choice?

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Liquidated damages provisions are common to all types of agreements, from leases to construction contracts. While liquidated damages provisions may appear “boilerplate” and full of legalese, they profoundly impact how much a...more

McGlinchey Stafford

Can I Lose the Ability to Compel Arbitration? - McGlinchey Commercial Law Bulletin - December 28 2023

McGlinchey Stafford on

Intrusion Upon Seclusion- Feasby v. Logan, 3rd Appellate District Paulding County (Ohio Ct. App. 2023)- In this appeal, the Third Appellate District reversed the trial court’s decision to grant judgment on the pleadings...more

Stoel Rives -  Ahead of Schedule

The Role of Liquidated Damages Provisions in Construction Contracts

Considering all that can go wrong on a construction site, it can seem like a miracle that anything is ever built. Construction projects can be massive undertakings, often with millions of dollars at stake, requiring the...more

Lewitt Hackman

Franchisor 101: Liquidated Damages, 30 Minutes or Less

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A Michigan district court held a franchisee breached its obligations under its franchise agreements and upheld the liquidated damages clause in the agreements....more

Pierce Atwood LLP

There’s No Tying in Litigation - Factors to Determine the Winner for Fee Shifting Provisions

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Deciding whether to include a prevailing party attorneys’ fee provision in a contract is important, as doing so has significant risk and cost implications of litigation. Prevailing party provisions foster dispute...more

Bradley Arant Boult Cummings LLP

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can...more

Lathrop GPM

Michigan Federal Court Grants Summary Judgment Enforcing Franchise Agreement Termination and Awarding Liquidated Damages and...

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A federal court in Michigan granted Little Caesar Pizza Enterprises, Inc.’s motion for summary judgment seeking to enforce its termination of the franchise agreements between it and franchisee S&S Pizza Enterprises, Inc....more

BCLP

Can liquidated damages clauses set general cap?

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A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more

A&O Shearman

Watts at stake when there's a delay?

A&O Shearman on

The High Court has provided guidance on a contractor’s general right to suspend works, the enforceability of liquidated damages upon termination, and the recoverability of financing costs as part of loss of revenue....more

Levenfeld Pearlstein, LLC

Taking Steps to Avoid Sinking the Liquidated Damages Clause in Contracts

Many contracts contain provisions regarding “liquidated damages,” which purport to fix the amount of money that one party will pay to the other in the event of a breach of their contract. Calling them “damages,” however, is...more

Lewitt Hackman

Franchisor 101: Promises to Prospectives

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A federal district court in New Jersey denied Travelodge Hotels’ motion for partial summary judgment against a former franchisee, holding there are genuine issues of fact as to Travelodge’s breach of contract claims....more

Porter Hedges LLP

Tips on Drafting Enforceable and Effective Liquidated Damages Provisions Under Texas Law

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Liquidated damages provisions are commonplace in construction contracts. One would think that given the strong Texas public policy favoring freedom of contract, bargained for liquidated damages would be easily enforceable in...more

Miller Starr Regalia

Valid Liquidated Damages Or Unenforceable Penalties? A Discussion Of Recent California Appellate Court Decisions

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Contracting parties build liquidated damages provisions into their agreements in a variety of contexts. These provisions unquestionably can serve useful and legitimate functions including controlling risk exposure and...more

McGlinchey Stafford

Do I Have Standing in Florida State Court? Not So Fast.-McGlinchey Commercial Law Bulletin - January 20 2023

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Ohio- Liquidated Damages- Pacetti’s Apothecary v. Rebound Bracing & Pain Sol. Inc., 2d Dist. Greene, No. 2023-Ohio-93. In this appeal, the Second Appellate District affirmed the trial court’s decision finding that a late...more

Morgan Lewis - Tech & Sourcing

Dependencies in Technology Integration Deals, Part 2: Remedies for Breach

In Part 1, we discussed what a dependency in a technology integration is and how to deal with it in a contract. In this installment, we’ll consider how to address the risk of the assisting party not providing required...more

Allen Matkins

California Supreme Court Denies Review Of Default Interest Decision

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California Civil Code Section 1671 provides that a liquidated damages provision is either presumptively valid or invalid depending upon the subject matter of the contract.  If the contract involves “the retail purchase, or...more

DarrowEverett LLP

Precedent and Precision Continue to Drive Massachusetts Court Decisions in Litigation Involving Commercial Leases

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Nearly a decade ago, I wrote an article for the New England Real Estate Journal about a decision issued by the Massachusetts Supreme Judicial Court that provided an important reminder to commercial leasing practitioners on...more

Troutman Pepper Locke

Careful Contract Drafting Could Mean Recovery of Liquidated Damages and Actual and Consequential Damages

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Town of New Milford v. Std. Demolition Srvcs., Inc., 212 Conn. App. 30 (2022) - The case involved cleanup and environmental remediation of a vacant factory contaminated with polychlorinated biphenyls and asbestos. The...more

Patton Sullivan Brodehl LLP

Enforceability of Commercial Lease Co-Tenancy Provisions

A commercial lease co-tenancy clause conditions a retail tenant’s opening for business or continuing operations at the designated property upon another tenant opening for business or continuing operations at the same...more

Robinson+Cole Construction Law Zone

A Liquidated Damages Provision Might Not Liquidate All Potential Damages

The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over...more

Fox Rothschild LLP

“As Is” Purchases of Commercial Property May Come with Limited Remedial Tools to Avoid Closing, Business Court Confirms

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As failed commercial property deals go, the one at the heart of Miriam Equities, LLC v. LB-UBS-2007-C2 Millstream Road LLC, 2022 NCBC 3, was not outside the norm for a Business Court transaction autopsy. There was a missed...more

Lewitt Hackman

Franchisor 101: Waive Before Check Out

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A Georgia district court declined to dismiss a breach of contract case by a hotel franchisor against a franchisee. The court rejected the franchisee’s argument that the franchisor waived its rights under the parties’ license...more

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