Cummings Properties, LLC v. National Communications Corp., 449 Mass. 490 (2007)

Citation: Cummings Properties, LLC v. National Communications Corp., 449 Mass. 490 (2007)
Parent Document: Cummings Properties, LLC v. National Communications Corp., 449 Mass. 490 (2007)
Jurisdiction: Massachusetts (state)
Effective Date: 2007-07-17
Original Source: https://www.courtlistener.com/opinion/6579581/cummings-properties-llc-v-natio... ↗

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Cordy, J.
In this case we must determine whether an accelerated rent provision in a commercial lease constitutes an enforceable liquidated damages provision where the tenant’s breach, the failure to pay rent, is deemed by the lease (and agreed by the parties) to be “significant,” but where, on its face, the provision might also apply to breaches of less significance, to which its application would be disproportionate. A judge in the District Court awarded the landlord damages as calculated by the accelerated rent provision, and possession of the leased premises. The Appellate Division affirmed the judgment of possession but vacated the award of damages on the ground that our *491decision in Commissioner of Ins. v. Massachusetts Acc. Co., 310 Mass. 769 (1942) (Commissioner of Ins.), barred enforcement of a liquidated damages provision that, by the terms of the lease, could apply to both trivial as well as material breaches. On remand to the District Court, the judge determined and awarded the landlord its actual damages, a sum six per cent smaller than the liquidated damages award. This appeal followed. We conclude that the liquidated damages provision was enforceable and reinstate the original award of damages.

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