CUMMINGS PROPERTIES, LLC v. DARRYL C. HINES., 201 N.E.3d 295 (2022)

Citation: CUMMINGS PROPERTIES, LLC v. DARRYL C. HINES., 201 N.E.3d 295 (2022)
Parent Document: CUMMINGS PROPERTIES, LLC v. DARRYL C. HINES., 201 N.E.3d 295 (2022)
Jurisdiction: Massachusetts (state)
Effective Date: 2022-12-05
Original Source: https://www.courtlistener.com/opinion/10271850/cummings-properties-llc-v-darr... ↗

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Although "[t]here is no bright line separating an agreement to pay a reasonable measure of damages from an unenforceable penalty clause," a liquidated damages provision will generally be enforced if (1) "at the time the agreement was made, potential damages were difficult to determine," and (2) "the clause was a reasonable forecast of damages expected to occur in the event of a breach." TAL Fin. Corp., 446 Mass. at 431-432. Only the second of these conditions is at issue in this case. [Note 5] In determining whether it has been met, we must "examine only the circumstances at contract formation" (the "single look" approach) and not the circumstances at the time of breach (the "second look" approach). Kelly v. Marx, 428 Mass. 877, 880-881 (1999). Page 33

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