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

NPS, LLC. V. MINIHANE

886 N.E.2d 670 (2008)

NATURE OF THE CASE: A judge agreed with the Minihane (D) and refused to enforce a liquidated damages provision as it was deemed to be a penalty. NPS (P) appealed.

FACTS: P is the developer of Gillette Stadium (stadium), the home field of the New England Patriots professional football team (Patriots). P entered into an agreement with D for the purchase of a ten-year license for two luxury seats in the Club Level III section. The agreement included a liquidated damages provision, which provides that in the event of a default, including failure to pay any amount due under the license agreement, the payments would be accelerated so that D would be required to pay the balance for all the years remaining on the contract. Upon executing the agreement, D paid a $7,500 security deposit; he later made a payment of $2,000 toward the license fee for the 2002 season. Although he or his guests attended all but one of the 2002 preseason and regular season Patriots games at the stadium using the tickets for the Club Seats, he made no further payments. P accelerated the payments and filed a complaint in the Superior Court seeking the full amount due under the contract. The judge ruled that the liquidated damages provision was unenforceable because the amount due was 'grossly disproportionate to a reasonable estimate of actual damages made at the time of contract formation.' The judge awarded damages to P in the amount of $6,000. P appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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