Lake River Corporation, Plaintiff-Appellee-Cross-Appellant v. Carborundum Company, Defendant-Appellant-Cross-Appellee

How courts have described this case

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

• holding that liquidated damage clause designed to give plaintiff “full damages ... and more” from breach even if it made no effort to find substitute use for equipment was “just one more piece of evidence that it is a penalty clause rather than a liquidated-damages clause”
• need for estimation at time of contracting must be shown by reference to likely difficulty of measuring actual damages after the breach occurs
• liquidation of damages must be reasonable estimate at the time of contracting of the likely damages from breach
• liquidated damages provision constitutes a penalty if the amount required to be paid is “invariant to the gravity of the breach”
• “The parties did not contract explicitly with reference to the measure of damages if the agreed-on damage formula was invalidated, but all this means is that the victim of the breach is entitled to his common law damages.”

Source: CourtListener parenthetical corpus (CC0).