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Damages Liquidated Damages

Lathrop GPM

New Jersey Federal Court Enters Default Judgment for Hotel Franchisor, Requests More Substantiation Before Ruling on Damages

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A federal district court in New Jersey recently entered an unopposed default judgement for breach of contract against Mani Hotels, LLC and Mehulkumar Ahir arising from the early termination of a franchise agreement with Days...more

McGlinchey Stafford

Court Finds That Amendment To BIPA Limiting Damages Does Not Apply Retroactively

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A district court in Illinois has ruled that an amendment to the Illinois Biometric Information Privacy Act (BIPA) regarding a limitation on damages does not apply retroactively. Background - Plaintiff filed a class action...more

Mayer Brown

New York Amends Labor Law to Limit Damages for Late Payments to Manual Workers

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INTRODUCTION On May 9, 2025, New York State Governor Kathy Hochul signed a bill as part of the 2026 Fiscal Year budget, amending New York Labor Law (“NYLL”) Sections 191 and 198. The purpose of the amendment is to limit...more

Lathrop GPM

New Jersey Federal Court Enters Default Judgment Against Franchisee, Awards Franchisor Liquidated Damages

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A federal court in New Jersey recently entered default judgment against franchisee Nisha Investments, LLC and its guarantor Rajesh Patel arising from their early termination of a franchise agreement with La Quinta...more

Mintz - Employment Viewpoints

New Amendments to the New York Labor Law Limit Certain Pay Frequency Claim Damages

New York State has resolved a recent judicial split regarding pay frequency violation remedies by amending the New York Labor Law (“NYLL”) to limit an employee’s ability to recover sizeable liquidated damages. New York...more

Fox Rothschild LLP

New York Scales Back Damages for Frequency-of-Pay Violations

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A recent change to New York labor law means employers will no longer face business-crippling lawsuits for minor frequency-of-pay mistakes, as long as they have not previously been found to have violated the state’s...more

Proskauer - Law and the Workplace

Labor Law Amendments Limit Damages for Violation of New York’s Weekly Pay Law

As we’ve blogged on previously, there’s a split in the New York intermediate-level appellate courts as to whether a private right of action exists for a violation of Labor Law § 191(1)(a), which—absent a waiver by the...more

Gray Reed

Disrupted Operations – Owners Beware! – Part 2 (DAMAGES)

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Liquidated damages are intended to provide predictability to the owner and contractor as to the financial consequence of not completing a project in a timely manner. Since liquidated damages are intended to compensate the...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

Gray Reed

Weathering the Storm—Part 1: Understanding Liquidated and Consequential Damages in Construction Contracts

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When project delays occur due to natural disasters, the financial implications can be severe. Construction stakeholders often focus on immediate physical damages while overlooking the potentially devastating impact of...more

Davis Wright Tremaine LLP

Illinois Revises Biometrics Law To Reduce the Prospect of "Ruinous" Damage Awards

In a major change to a law that produced extraordinarily high damages claims and settlements, the Illinois General Assembly amended the Biometric Information Privacy Act (BIPA) to substantially reduce potential liability for...more

Cooley LLP

Inundated With Requests Under New Jersey’s Daniel’s Law? 

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A flood of class action lawsuits have been filed against companies alleging violations of New Jersey’s Daniel’s Law. The statute – enacted after the son of a New Jersey federal judge was fatally shot by a disgruntled lawyer –...more

Bradley Arant Boult Cummings LLP

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can...more

Parker Poe Adams & Bernstein LLP

Fourth Circuit Says Negligence Not Grounds for Awarding Additional Year of FLSA Overtime Pay

Employers that fail to pay required minimum wage or overtime under the Fair Labor Standards Act are liable for the amount of missed wages: doubled, plus attorneys fees, costs, and interest. The court can award such damages...more

Levenfeld Pearlstein, LLC

Taking Steps to Avoid Sinking the Liquidated Damages Clause in Contracts

Many contracts contain provisions regarding “liquidated damages,” which purport to fix the amount of money that one party will pay to the other in the event of a breach of their contract. Calling them “damages,” however, is...more

Davis Wright Tremaine LLP

New York State Senate Passes Bill That Would Ban Post-Employment Noncompete Agreements

On June 7, 2023, the New York State Senate passed new sweeping legislation, Senate Bill S3100A (the "Bill"), which would ban post-employment noncompete agreements in New York. The Bill now heads to the New York State...more

Snell & Wilmer

Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.

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Liquidated damages provisions in commercial and residential real estate contracts play a vital role when a transaction goes south, and should be given careful consideration when negotiating a real estate contract. Liquidated...more

A&O Shearman

Stop the press; a liquidated damages case that isn’t about penalties…

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You might be forgiven for thinking that any time a party wants to get out of a liquidated damages provision, it argues the clause is an unenforceable party. However, in a recent case, a contractor sought to avoid liquidated...more

Sheppard Mullin Richter & Hampton LLP

What Employers Need to Know About Newly Proposed Non-Compete Legislation in New Jersey

Following a nationwide trend, New Jersey recently joined a growing list of states seeking to limit the use of non-compete and non-solicitation agreements by employers. On May 19, 2022, the New Jersey Assembly’s Labor...more

Snell & Wilmer

Arizona Trial Court Holds Owner May Recover First-Party Consequential Damages From Subcontractor Despite Prime Contract Waiver

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In a recent Arizona case, the trial court held that an owner could sue a subcontractor directly for recovery of the owner’s consequential delay damages based on the subcontract’s express indemnity clause, notwithstanding that...more

Morris James LLP

Superior Court Enforces $48 Million Liquidated Damages Provision

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Smart Sand Inc. v. US Well Servs. LLC, C.A. No. N19C-01-144 PRW CCLD (Del. Super. June 11, 2021) - A liquidated damages provision is enforceable under Delaware law if: (1) damages are uncertain at the time of contracting;...more

Akin Gump Strauss Hauer & Feld LLP

Triple Point Technology, Inc v PTT Public Company Ltd – Court of Appeal Overturned

Sir Rupert Jackson sitting in the Court of Appeal had found that the liquidated damages clause providing for liquidated damages to be paid for each day of delay by the contractor “from the due date for delivery up to the date...more

Akin Gump Strauss Hauer & Feld LLP

Take or Pay: Does the Law of Penalties Apply?

Q2 2020 saw a tangible increase in the number of queries from clients asking about the enforceability of take or pay clauses common in supply agreements. Intermingled with questions around force majeure, the key issue appears...more

Benesch

DOL Curtails Practice Of Seeking Double Damages From Employers In Wage Investigations

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The U.S. Department of Labor (“DOL”) has issued new guidance restricting when the government can seek liquidated damages, which double the amount owed by employers, to settle overtime and minimum wage investigations prior to...more

Porter Hedges LLP

Alert: "SCOTX Affirms Second-Look Approach For Liquidated Damages, Clarifies Each Side's Burdens"

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Nearly six years after its opinion in FPL Energy, LLC v. TXU Portfolio Mgmt. Co., the Texas Supreme Court once again took up the issue of whether liquidated damages constitute an unenforceable penalty in Atrium Medical...more

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