Court Opinion

ID: 9760109
Source: CourtListenerOpinion
Date Created: 2023-08-29 00:40:33.535936+00
Date Added: 2024-06-11T07:29:08.309346
License: Public Domain

NEBEKER, Associate Judge,
dissenting:
I cannot agree with the majority’s determination that Article 3 constitutes a liquidated damages clause. By definition, a liquidated damages clause specifies a sum certain to be forfeited in the event of breach of contract. Order of Ahepa v. Travel Consultants, Inc., D.C.App., 367 A.2d 119, 126 (1976); Davy v. Crawford, 79 U.S.App.D.C. 375, 376, 147 F.2d 574, 575 (1945); 5 Williston on CONTRACTS § 776 (3d ed. 1961). Liquidated damages clauses are employed in situations where the amount of damages incurred as a result of a breach would be difficult to ascertain. By contrast, Article 3 requires all damages incurred by the owners for packing and storage of furnishings and temporary accommodations to be backed by actual receipts. Quite simply, damages under this contract were never liquidated; the parties merely set a ceiling for recovery on three expenses. Therefore, it was error to rule as a matter of law that the language in Article 3 excluded proof of other types of damages resulting from a contractual breach. Evidence of additional expenses should have been presented to the trier of fact.