Rodriguez v. Learjet, Inc.
Court of Appeals of Kansas
946 P.2d 1010 (1997)
Diaz (plaintiff) contracted to buy a jet from Learjet (defendant), paying only a $250,000 deposit before defaulting; Learjet terminated the contract, kept the deposit as liquidated damages, and resold the jet for a profit exceeding what it would have made on the Diaz sale. Diaz sued, arguing Learjet's real damages were far below $250,000 and the liquidated damages clause was an unenforceable penalty. After earlier proceedings established the case should go forward, a bench trial found Learjet was a lost-volume seller entitled to lost profits and upheld the liquidated damages clause. Diaz appealed.
Whether, under the U.C.C. as adopted by Kansas, a seller is entitled to damages for a buyer's breach of a sales contract even if the item was resold to another buyer.