Northern Illinois Gas Co. v. Energy Cooperative, Inc.
Illinois Court of Appeals
461 N.E.2d 1049 (1984)
Relevant factsFree
NIG agreed to buy naphtha from ECI over ten years with a liquidated damages clause of one cent per gallon; when NIG stopped purchasing after natural gas prices fell, ECI sued for actual and consequential damages of roughly $305.5 million rather than seeking the approximately $13.6 million in liquidated damages, and a jury awarded the larger actual-damages amount.
IssueFree
Whether Uniform Commercial Code § 2-719 requires a liquidated damages clause to be stated as the exclusive remedy in a contract.