TAL Financial Corp. v. CSC Consulting, Inc.
Massachusetts Supreme Judicial Court
844 N.E.2d 1085 (2006)
Relevant factsFree
TAL's (plaintiff) equipment lease with Onward included a liquidated damages clause allowing recovery of remaining lease payments plus 18% of TAL's equipment acquisition costs; after CSC (defendant) acquired Onward, failed to pay under the assumed lease, and disposed of the leased equipment, TAL sued for $112,156 in liquidated damages, which the trial court found constituted an unenforceable penalty.
IssueFree
Whether, in Massachusetts, a liquidated damages provision is enforceable so long as the amount constitutes a reasonable approximation of either anticipated or actual damages.