Barrie School v. Patch
Maryland Court of Appeals
933 A.2d 382 (2007)
The Patches (defendants) enrolled their daughter at the Barrie School (plaintiff) under an agreement requiring written withdrawal notice by May 31, 2004, or else payment of the full remaining tuition balance as liquidated damages. The Patches withdrew their daughter on July 14, well after the deadline, refused to pay the liquidated tuition balance, and demanded their deposit back; the School sued for the balance plus interest and fees, and the Patches counterclaimed for their deposit. The trial court found the liquidated damages clause valid and enforceable but ruled for the Patches anyway because the School had done nothing to mitigate its damages, and the appellate court affirmed.
Whether, in Maryland, a non-breaching party has a duty to mitigate damages where the parties agreed to a valid liquidated damages sum in the event of a contract breach.