Xco International Inc., Plaintiff-Appellant/cross-Appellee v. Pacific Scientific Company, Defendant-Appellee/cross-Appellant

How courts have described this case

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

• questioning why courts should bother themselves with determining whether such clauses are reasonable estimates of damages or mere penalties
• rejecting essentially identical argument regarding substantively identical contract provision in patent licensing agreement
• “Contract interpretations that produce commercially unreasonable results are disfavored, not as a matter of public policy but simply because they are implausible to impute to parties.”
• “if a contract provides that breaches of different gravity shall be sanctioned with equal severity, it is highly likely that the sanction specified for the mildest breach is a penalty”
• “[I]f there is a very stiff penalty for breach, parties will be discouraged from committing ‘efficient’ breaches, that is, breaches that confer a greater benefit on the contract breaker than on the victim of the breach … .”
• “[I]f there is a very stiff penalty for breach, parties will be discouraged from committing ‘efficient’ breaches, that is, breaches that confer a greater benefit on the contract breaker than on the victim of the breach … .”

Source: CourtListener parenthetical corpus (CC0).