CARR-GOTTSTEIN PROPERTIES, LIMITED PARTNERSHIP V. BENEDICT
72 P.3d 308 (Alaska 2003)
NATURE OF THE CASE: Carr (P) appealed a determination that is provision for liquidated
damages was unenforceable.
FACTS: CC&R requires owners of lots within the subdivision to complete any construction
of a dwelling within one year. The CC&R contains a liquidated damages clause that provides a
$25 daily fine for any violation of the CC&R. On September 20, 1999, Benedict (D) began
construction on her lot. On October 31, 2000, P gave D written notice that P was in
violation of the one-year construction limitation covenant. P filed suit to require
completion of the construction and for assessment of liquidated damages. P moved for partial
summary judgment on the question whether D was in compliance with the covenant. D filed a
cross-motion for summary judgment challenging the validity of the liquidated damages
provision. The trial court found that D was not in compliance with the covenant but also
that the CC&R's liquidated damages clause was impermissible. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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