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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