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You are here: Home1 / Contract Law2 / CONTRACTUAL PROVISION LIMITING DAMAGES IS ENFORCEABLE, CRITERIA EXPLAINED...
Contract Law

CONTRACTUAL PROVISION LIMITING DAMAGES IS ENFORCEABLE, CRITERIA EXPLAINED (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the contractual provision limiting damages was enforceable. Plaintiff, Astoria, owned a power station and hired defendant, Rileu, to overhaul a steam boiler, which exploded. The contract limited Riley’s damages to one and a half times the contract price:

A clear contractual provision limiting damages is enforceable, unless there is a special relationship between the parties, there is a statutory prohibition against it, or it is against public policy because the conduct of the party seeking to enforce it was grossly negligent … . Here, Riley established, prima facie, that the clear limitation of liability provision contained in the addendum to the contract was part of an arm’s length transaction between the parties, two sophisticated commercial entities, and is thus valid and enforceable … . Riley further established, prima facie, that there was no special relationship between it and Astoria, that there was no statutory prohibition against the limitation of liability provision, and that the provision was not against public policy … . Astoria Generating Co., LP v Riley Power, Inc., 2020 NY Slip Op 00560, Second Dept 1-29-20

 

January 29, 2020
Tags: Second Department
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DEFENDANT PROPERLY REJECTED THE MACHINES AS NONCONFORMING GOODS, PLAINTIFF DID NOT CURE THE NONCONFORMITY, AND DEFENDANT WAS ENTITLED TO CONSEQUENTIAL DAMAGES AND LOST PROFITS (SECOND DEPT). ​
RETURN OF THE CHILDREN TO MOTHER AFTER A TEMPORARY REMOVAL WAS NOT SUPPORTED BY A SOUND AND SUBSTANTIAL BASIS (SECOND DEPT).
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Complaint Stated Causes of Action for Breach of Contract and Fraud—Plaintiff Agreed to Forgo Compensation for Work Done for Defendant in Return for a Stake in Defendant’s Business—Defendant Terminated the Relationship Without Paying Plaintiff
ALTHOUGH THE CHILD SUPPORT INCOME FOR TWO CHILDREN IN COLLEGE WAS COUNTED AS PART OF THE HOUSEHOLD INCOME, THE TWO COLLEGE STUDENTS WERE PROPERLY NOT COUNTED FOR FOOD STAMP ELIGIBILITY, THE DENIAL OF FOOD STAMPS WAS PROPER (SECOND DEPT).

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