But in the end Hines lost:
"A Superior Court judge upheld the enforceability of the liquidated damages clause. Hines appealed and the Appeals Court reversed, concluding that the provision was an unenforceable penalty because it didn’t account for the fact that Cummings could (and in fact did) re-let the space and mitigate its damages. Cummings then appealed to the SJC.
In its decision, the SJC cited the basic rule of freedom of contract and deference to those who willingly enter into legally enforceable contracts."
I understand your feelings as expressed here and I know I'm preaching to the choir:
"I am not sure the logic behind the doctrine is more persuasive than the common sense idea that a judgment for you should simply “make you whole” and, in severe cases, penalize the loser with punitive damages."
But that adds some subjectivity that the Court wanted to avoid.
What's a severe case? What's more severe than what happened here other than leaving town on the midnight train? An executed lease should avoid litigation and there should be a penalty for the party that doesn't meet its terms, not just a "making whole".
A landlord should be able to sleep comfortably in the knowledge that the tenant will pay its rent, etc. without the need for any litigation. How should Cummings be compensated for the lost sleep?
Is it okay to be forced to endure a court case in order to secure what is rightfully yours by contract?
IIRC a sublessee for a portion of the space was found and that deal was allowed to get undone by the inaction of IPIX. There was little left for IPIX to do wrong in this situation.
Anyway...the fat lady still hasn't sung. At last tally IPIX doesn't have the judgment money. Now what?
The whys and wherefores behind LE's decision to avoid a decision would be interesting to know. Every day here we're told about the potential of brilacidin, etc. If he had the same level of confidence expressed here he should have been able to make SOME decision, whether that be a smaller space or no space at all, as it ended up. That's all he had to do. He's not very good at decisions, is he?
No matter what it is or who commenced it, I'm against it!
....Groucho
