Court Opinion

ID: 9545302
Source: CourtListenerOpinion
Date Created: 2023-08-07 17:09:52.671895+00
Date Added: 2024-06-11T15:14:31.465818
License: Public Domain

CROCKETT, Justice
(concurring in the dissent of ELLETT, C. J., but with reservation):
Caution should be observed that the courts do not interfere with the right of freedom of contract, which is of course a valuable property right and an important aspect of individual liberty, which should not be lightly interfered with. That principle is invariably recognized in our cases, including Perkins v. Spencer and Jacobson v. Swan, referred to in the main opinion. One modification of the foregoing is that if the literal enforcement of a forfeiture provision in a contract would produce a result so entirely disproportionate to any loss or damage which has occurred, or was reasonably to be contemplated, that it amounts to a wholly unreasonable and burdensome penalty on the defendants, and a commensurate unjustifiable enrichment to the plaintiffs, so that to enforce it would be so revolting to the court’s sense of fairness and justice that it shocks his conscience, then only will the court exercise its equitable prerogative and refuse to enforce such a penalty.
In the instant case I agree with the analysis of Chief Justice Ellett and with his opinion that there is no basis therein upon which it could reasonably be concluded that the enforcement of the contract would fall within the rule just stated and so shock the conscience that the court should not enforce the contract. However, I reserve concur*376rence with the second part of his dissenting opinion. I do not exclude the possibility that there may be circumstances where a party may have defaulted, or for other reasons ceased to perform a contract, or may even have relinquished possession of purchased property, but where the application of the principles set forth above may justify a court in exercising its equitable prerogative in refusing to enforce the penalty or to grant equitable relief therefrom.