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Vanderbilt University v. DiNardo

United States Court of Appeals for the Sixth Circuit

174 F.3d 751 (6th Cir. 1999)

Relevant factsFree

Vanderbilt (plaintiff) hired DiNardo (defendant) as head football coach for five years under a contract stating the term was essential to program stability and requiring DiNardo to pay declining liquidated damages (equal to his remaining net salary) if he resigned to coach elsewhere during the term; the parties later signed an addendum extending the contract two years. When DiNardo left early to coach at LSU, Vanderbilt sued for the liquidated damages covering the remaining contract and addendum years; both parties moved for summary judgment, and the district court enforced both the original provision and the addendum, prompting DiNardo's appeal.

IssueFree

Whether a liquidated-damages provision is enforceable if it is reasonable in relation to the anticipated damages for breach of contract, measured prospectively at the time the parties entered into the contract, and not grossly disproportionate to the actual damages.

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