By Andrew R. Schwartz | Published January 20, 2025 | Posted in Commercial Litgation | Tagged Tags: Contract breach, Illinois law, Liquidated damages | Comments Off on When Is a Liquidated Damages Clause an Unenforceable Penalty?
When Is a Liquidated Damages Clause an Unenforceable Penalty?
Liquidated damages clauses generally provide a predetermined amount of compensation in case of a contract breach, especially when actual damages may be difficult to calculate. However, Illinois courts will not enforce such a clause if it seeks to punish the breaching party rather than to approximate actual damages. A party challenging the enforceability of a Read More
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Piercing the Corporate Veil to Collect on a Judgment
A business often operates as a separate legal entity, such as a corporation or limited liability company, which protects its individual owners from personal liability for the company’s debts or obligations. The liability shield (called a “corporate veil”) encourages business investment by limiting the investors’ potential losses to the funds they put directly into the Read More
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Resolving Disputes Between Co-owners of a Small Company
Co-owners who had common goals when they started their business may find their paths veering in different directions as time passes. Whether it’s a clash in management styles or business plans, a dispute between co-owners of a small company can interfere with day-to-day operations and possibly imperil the company’s future. Swift and effective resolution of Read More
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Literally Taking the Case
In their December 2020 Illinois Bar Journal article, attorneys Andrew R. Schwartz and John Cerney present the following scenario: Without first consulting its lawyers, your firm’s major client, Hapless Client, LLC, entered into a horrible one-sided contract with Sketchy Business, Inc. To make matters worse, Sketchy just filed a contract claim against Hapless to enforce that contract, Read More
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Injunctive Relief for Anticipatory Breach of Contract in the Wrigley Rooftops Lawsuit
Most contract litigation occurs after a breach, when the harm has already occurred. In such cases, the remedy can include monetary damages for losses and equitable relief to prevent future losses.
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When Should Commercial Litigation Go to Federal Court?
Commercial litigants need a litigation strategy before filing suit. Part of that strategy involves targeting the proper court to hear your claim.
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Business Litigation FAQs
What is “business litigation”? We use the broad term “business litigation” to describe any litigation for control of a privately-owned company. Other terms we frequently see are “freeze-outs,” “squeeze-outs,” “business divorces,” “oppression” and “breach of fiduciary duty.”
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Commercial Litigation FAQs
What is “commercial litigation”? Generally speaking, we use the broad term “commercial litigation” to describe any litigation involving trade and commerce.
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Fraudulent Transfers in Illinois
What is Illinois’ Uniform Fraudulent Transfer Act (“IUFTA”)? The IUFTA is a statute designed to combat fraudulent transfers by debtors that impair the rights of creditors.
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Confession Judgments
What is a “confession-of-judgment clause”? A “confession-of-judgment clause,” also called a “cognovit,” is a contract provision that lets a creditor appoint a lawyer for the debtor, who agrees to let the creditor take a judgment against the debtor.
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