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Liquidated Damages Public Policy

King & Spalding

New York Bankruptcy Court Finds That Aircraft Leases' Liquidated Damages Clauses and Guarantees Are Unenforceable

King & Spalding on

On February 14, 2019, Judge Lane of the Bankruptcy Court for the SDNY issued an opinion in Republic Airways Holdings Inc. addressing whether the liquidated damages provisions in certain aircraft “true leases” under Article 2A...more

Miller Starr Regalia

Built-In Contract Remedies: Avoiding the Unenforceable Penalty

Miller Starr Regalia on

Under California law, a provision of a contract found to impose a penalty is unenforceable as a forfeiture and contrary to public policy. The characteristic feature of a penalty is the lack of proportional relation between...more

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