Samiro Services, Inc. V. JGAB, Inc

Court: New York Supreme Court, Appellate Term, 2nd and 11th Judicial Districts (2007) Citation: 16 Misc.3d 127(A), 2007 WL 1835527 (N.Y.Sup.App.Term), 2007 N.Y. Slip Op. 51266(U) Background: Our client, Samiro Services, Inc., entered into a contract with the defendant to service the defendant's exhaust system every three months. The agreement stipulated what recourse each side would have in the event of unsatisfactory service or nonpayment, and what costs the defendant would be obligated to pay in the event litigation ensued from defendant's breach. Details of the case: After a dispute arose concerning our client's services, the defendant refused to pay and also failed to provide proper written notice of dissatisfaction with Samiro's cleaning services. Samiro advised the defendant that they would discontinue service until they were compensated properly. The parties eventually settled the overall dispute, but Samiro sought $3,296.04 in liquidated damages and attorneys' fees as stipulated in the contract. The Supreme Court initially granted the defendant's motion for summary judgment and dismissed Samiro's cross-motion for summary judgment. Samiro then appealed to the Appellate Term. Decision: The Appellate Term court reversed the Civil Court's ruling, granting Samiro's motion for summary judgment and denying the defendant's motion for summary judgment. The Appellate Term found that "under the circumstances herein, the liquidated damages clause provision is enforceable as the actual damages were not readily ascertainable, and the amount sought, 50% of the cost of the services that would have been rendered for the balance of the unexpired term are not conspicuously disproportionate to the foreseeable losses." The court ordered the defendant to pay the liquidated damages plus 25% of this amount as attorneys' fees. At Weinstein, Kaplan & Cohen, P.C. our attorneys' knowledge of business law and collections makes us powerful advocates in the litigation and appeals of contract disputes. If you have a contract dispute that needs experienced representation and well crafted legal advocacy, contact us today. Our lawyers can be reached by phone at (800) 722-1342 or by e-mail using our intake form.