JMD Holding Corp. v. Congress Financial Corp.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding breach of provisions of contract that would have given the counterparty essential information was a material breach
• enforcing a $600,000 prepayment penalty in connection with a $40 million revolving loan as liquidated damages
• where a purported liquidated damages clause is an unenforceable penalty, “the rest of the agreement stands, and the injured party is remitted to the conventional damage remedy for breach of that agreement”
• “The burden is on the party seeking to avoid liquidated damages . . . to show that the stated liquidated damages are, in fact, a penalty.”
• A liquidated damages provision should be a proper “estimate, made by the parties at the time they enter into their agreement, of the extent of the injury that would be sustained as a result of breach of the agreement.”

Source: CourtListener parenthetical corpus (CC0).