OCM Partner David Mack quoted in Massachusetts Lawyers Weekly
OCM partner David Mack was quoted in a March 25, 2022 Massachusetts Lawyer’s Weekly article regarding a liquidated damages case in the U.S. District Court.
The Plaintiff in this case enlisted the Defendant to install security systems for a number of its clients. The contract included installing systems at hundreds of stores.
The Defendant, however, sought to do business these stores directly in violation of its non-solicitation agreement with Plaintiff, causing the Plaintiff to seek enforcement of the liquidated damages clause. The Defendant argued that the liquidated damages clause amounted to an unenforceable penalty.
U.S. District Court Judge Nathaniel M. Gorton agreed, granting Defendant’s motion for summary judgment.
Plaintiff’s attorney said, “there is a certain level of grey area in the liquidated damages law and its application,” and mentioned that his client was weighing the possibility of appealing the ruling at some point down the road.
David Mack was quoted saying, “the presence of a liquidated damages provision, with a particular formula for calculating damages, may cut against the irreparable harm argument. A liquidated damages provision may not be the best fit for a contract containing restrictive covenants.”
The article and decision can be found by clicking here.
For a discussion about liquidated damages more generally, click here.