NPS, LLC vs. PAUL MINIHANE 886 N.E.2d 670 (2008) CASE BRIEF

NPS, LLC vs. PAUL MINIHANE
886 N.E.2d 670 (2008)
NATURE OF THE CASE: NPS (P) appealed a decision that held a liquidated damages clause in an agreement to sell tickets was void as an unlawful penalty.
FACTS: P is the developer of Gillette Stadium (stadium), the home field of the New England Patriots. P entered into an agreement with the Minihane (D), for the purchase of a ten-year license for two luxury seats. D was to pay $3,750 per seat annually for each of the ten seasons from 2002 to 2011. A liquidated damages provision, provides that in the event of a default, including failure to pay any amount due under the license agreement, D would be required to pay the balance for all the years remaining on the contract. D paid a $7,500 security deposit and made a payment of $2,000 toward the license fee for the 2002 season. D made no further payments. P accelerated the payments and sued seeking the full amount due under the contract. The judge ruled that the liquidated damages provision was unenforceable because it was 'grossly disproportionate to a reasonable estimate of actual damages made at the time of contract formation.' P got a $ 6,000 judgment. P appealed.

ISSUE:


RULE OF LAW:


HOLDING AND DECISION:


LEGAL ANALYSIS:





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