Haromy v. Sawyer, 654 P.2d 1022 (Nev. 1982). · Go Syfert
Haromy v. Sawyer, 654 P.2d 1022 (Nev. 1982). Cases Citing This Book View Copy Cite
69 citation events (30 in the last 25 years) across 11 distinct courts.
Treatment trajectory · 1984 → 2026 · click a year to view as-of
1984 2005 2026
Top citers, strongest first. 18 distinct citers. How cited ↗
discussed Cited as authority (rule) ProDox, LLC v. Professional Document Services, Inc.
D. Nev. · 2024 · confidence medium
ECF No. 169 at 26:14–27:6, 30:18–23, 37:7–21 (ProDox’s counsel explaining the relevance of Sparks’s testimony concerning 14 why ProDox “decided to settle a case where the parties agreed that a certain amount would be considered liquidated damages” and “should be entitled to testify as to what at the time, when he 15 signed this agreement, what he considered to be a reasonable and fair amount to determine what would be considered liquidated damages based on what he perceived his harm would be”). 16 51 Haromy v. Sawyer, 654 P.2d 1022, 1023 (Nev. 1982). 17 52 See e.g., In re Bow…
discussed Cited as authority (rule) Ahern Rentals Inc. v. Young
D. Nev. · 2024 · confidence medium
(C) liquidated 26 damages in the amount of TWO HUNDRED FIFTY THOUSAND DOLLARS AND 27 00/100THS ($250,000).” (Id.) The section goes on to say that Plaintiff “shall be 28 entitled to such money damages insofar as they can be reasonably determined.” 1 (Id.) 2 Liquidated damages provisions are presumed valid under Nevada law. 3 Haromy v. Sawyer, 654 P.2d 1022, 1023 (Nev. 1982).
cited Cited as authority (rule) Ahmed v. Richland Holdings, Inc.
D. Nev. · 2021 · confidence medium
Sawyer, 654 P.2d 1022, 1023 (Nev. 1982); (ECF No. 44).
cited Cited as authority (rule) Winecup Gamble, Inc. v. Gordon Ranch LP
D. Nev. · 2020 · confidence medium
Mason v. 13 Fakhimi, 865 P.2d 333, 335 (Nev. 1993) (citing Haromy v. Sawyer, 654 P.2d 1022, 1023 (Nev. 14 1982).
cited Cited as authority (rule) Jh, Inc. v. Paul Morabito
9th Cir. · 2020 · confidence medium
Under Nevada law, “liquidated damage provisions are prima facie valid,” Haromy v. Sawyer, 654 P.2d 1022, 1023 (Nev. 1982).
discussed Cited as authority (rule) Auctus Fund, LLC v. Bemax, Inc.
D. Mass. · 2020 · confidence medium
At the same time, the Court determined that other liquidated damages provisions in the agreements at issue did not constitute penalties and were therefore “entitled to the presumption of Nevada law that ‘liquidated damage provisions are prima facie valid.’” Id. (quoting Harmony v. Sawyer, 654 P.2d 1022, 1023 (Nev. 1982)).
discussed Cited as authority (rule) Khan v. Bakhsh
Nev. · 2013 · confidence medium
Liquidated damages While we reverse and remand this case based upon the eviden-tiary errors, we also address the Khans’ argument that the district court improperly awarded liquidated damages to Bakhsh because the liquidated damages provision was a penalty. “[Ljiquidated damage provisions are prima facie valid,” Haromy v. Sawyer, 98 Nev. 544, 546 , 654 P.2d 1022, 1023 (1982), and serve as a good-faith effort to fix the amount of damages when contractual damages are uncertain or immeasurable.
discussed Cited as authority (rule) S. Brooke Purll, Inc. v. Vailes
D.C. · 2004 · confidence medium
Assocs., 159 N.J. 484 , 732 A.2d 493, 499-500 (1999) (“liquidated damages provisions in a commercial contract between sophisticated parties are presumptively reasonable, and the party challenging the clause bears the burden of proving its unreasonableness”); Wassenaar v. Panos, 111 Wis.2d 518 , 331 N.W.2d 357, 361 (1983) (“[placing the burden of proof on the challenger is consistent with giving the nonbreaching party the advantage inherent in stipulated damage clauses”); Haromy v. Sawyer, 98 Nev. 544 , 654 P.2d 1022, 1023 (1982) (“[generally, liquidated damage provisions are prima fa…
discussed Cited as authority (rule) River Road Associates v. Chesapeake Display and Packaging Co., Inc.
D.N.J. · 2000 · confidence medium
“Thus the party challenging a stipulated damage clause ‘must establish that its application amounts to a penalty.’ ” Wasserman’s, Inc., 645 A.2d at 108 (quoting Haromy v. Sawyer, 98 Nev. 544 , 654 P.2d 1022, 1023 (1982)).
examined Cited as authority (rule) Glezos v. Frontier Investments (4×) also: Cited "see"
Utah Ct. App. · 1995 · confidence medium
Haromy v. Sawyer, 98 Nev. 544 , 654 P.2d 1022, 1023 (1982).
discussed Cited as authority (rule) Wasserman's Inc. v. Township of Middletown
N.J. · 1994 · confidence medium
Calamari & Perillo, supra, § 14-31 at 643; see, e.g., Mattvidi Assocs. v. Nationsbank of Va., 100 Md.App. 71 , 639 A.2d 228, 238 (1994) (noting that “[n]ot only is placing the burden of proof on the party seeking to invalidate a liquidated damages clause the majority rule, it is also the only rule consistent with normal principles of contract law”); Haromy v. Sawyer, 98 Nev. 544, 654 P.2d 1022, 1023 (1982) (observing' that “[generally, liquidated damage provisions are prima facie valid”); Wassenaar, supra, 331 N.W.2d at 367 (determining that “the party challenging the contract! ] ca…
cited Cited as authority (rule) Mason v. Fakhimi
Nev. · 1993 · confidence medium
Haromy v. Sawyer, 98 Nev. 544, 546 , 654 P.2d 1022, 1023 (1982).
discussed Cited as authority (rule) Loomis v. Lange Financial Corp. (2×)
Nev. · 1993 · confidence medium
This court has previously held that “[a] liquidated damages clause is prima facie valid unless the challenging party proves its application amounts to an unenforceable penalty.” Joseph F. Sanson Investment v. 286 Limited, 106 Nev. 429, 435 , 795 P.2d 493, 497 (1990) (citing Haromy v. Sawyer, 98 Nev. 544, 546-47 , 654 P.2d 1022, 1023 (1982); Silver Dollar Club v. Cosgrilf Neon, 80 Nev. 108 , 389 P.2d 923 (1964)).
discussed Cited as authority (rule) Joseph F. Sanson Investment Co. v. 268 Ltd. (2×)
Nev. · 1990 · confidence medium
Haromy v. Sawyer, 98 Nev. 544, 546-547 , 654 P.2d 1022, 1023 (1982); Silver Dollar Club v. Cosgriff Neon, 80 Nev. 108 , 389 P.2d 923 (1964).
examined Cited as authority (rule) Joseph F. Sanson Investment Co. v. 268 Ltd. (In Re 268 Ltd.) (6×)
9th Cir. BAP · 1988 · confidence medium
Haromy v. Sawyer, 654 P.2d 1022, 1023 (Nev.1982); Silver Dollar Club v. The Cosgriff Neon Co., Inc., 389 P.2d 923, 925 (Nev.1964).
cited Cited as authority (rule) Hubbard Business Plaza v. Lincoln Liberty Life Insurance
D. Nev. · 1986 · confidence medium
Haromy v. Sawyer, 98 Nev. 544, 546-547 , 654 P.2d 1022, 1023 (1982); Silver Dollar Club v. The Cosgriff Neon Co., Inc., 80 Nev. 108, 112 , 389 P.2d 923, 925 (1964).
discussed Cited as authority (rule) Keller v. Bryant (In Re Bryant)
Bankr. D. Nev. · 1984 · confidence medium
Apart from the demands of the statute, the court concluded that the amounts recoverable upon default, if they were to be treated instead as liquidated damages, would be struck down as “ ‘unreasonably and grossly disproportionate to the real damages.’ ” (The amount due because of late charges was $99,522.50; without such charges, only $48,487.50.) While not afoul of Nevada usury law, these late charges are alternatively challengeable as void penalties because they are an unreasonable assessment of liquidated damages. 11 “[T]he party challenging the [liquidated damage] provision must e…
discussed Cited "see" Prothera, Inc. v. Zhou J. Ye (2×)
D. Nev. · 2020 · signal: see · confidence high
See Haromy v. Sawyer, 654 P.2d 1022, 1023 (Nev. 1982). 10 “In order to prove a liquidated damage clause constitutes a penalty, the challenging 11 party must persuade the court that the liquidated damages are disproportionate to the 12 actual damages sustained by the injured party.” Id. (citation omitted).
Retrieving the full opinion text from the archive…
LINDA K. HAROMY and FRANZ J. HAROMY, Appellants and Cross-Respondents,
v.
SANDRA SAWYER, Respondent and Cross-Appellant
12905.
Nevada Supreme Court.
Dec 15, 1982.
654 P.2d 1022
O’Brien & Avila, and Beckley, Singleton, DeLanoy & Jemison, Las Vegas, for Appellants and Cross-Respondents., Clark & Zubel, Las Vegas, for Respondent and Coss-Appellant.
Gunderson, Manoukian, Springer, Mowbray, Zenoff.
Cited by 24 opinions  |  Published

OPINION

Per Curiam:

On October 8, 1977, appellants Franz and Linda Haromy, owners of the Lake Apartments located in Las Vegas, Nevada, entered into a contract to sell the apartments to respondent, Sandra Sawyer.

Respondent agreed to pay $860,000 to appellants for the Lake Apartments. Pursuant to the terms of the contract, respondent was to provide $50,000 as a downpayment, make one monthly payment of $5,300, six monthly payments of $7,300, and a balloon payment of the balance owed on June 30, 1978.

Shortly after respondent took possession of the Lake Apartments, disputes arose between the parties. Respondent alleged the appellants had deceived her as to the true condition of the[*546] property. Consequently, respondent refused to pay the November and December payments as required under the contract.

Respondent filed suit against appellants for fraud, deceit and an accounting. She also filed an amended complaint requesting equitable relief based on the theory of unjust enrichment. While awaiting trial, the parties entered into a stipulation which provided that respondent would make all payments required under the contract to an escrow agent appointed by the parties. The stipulation also provided that appellants were entitled to take possession of the apartment property if any payments were more than ten days past-due.

On June 30, 1978, respondent failed to make the final balloon payment. Both parties filed motions for injunctive relief on various theories. Thereafter, a hearing was held on the parties’ cross-motions for preliminary injunctions. The district court granted appellants’ motion for a preliminary injunction, and held they were entitled to possession of the property.

At trial, the court, sitting without a jury, found that respondent failed to prove her claim of fraud. Nonetheless, the court found that respondent was entitled to partial restitution under the theory of unjust enrichment, and awarded her $83,600.85.

Appellants challenge the judgment awarding respondent partial restitution, contending that the terms of the parties’ agreement required all monies paid by respondent to be forfeited in the event of default.

Respondent cross-appeals, claiming she is entitled to a' greater award of damages than calculated by the court.

The parties’ contract of sale included the following liquidated damage clause:

12. Should default be made by Buyer under any of the provisions hereof, the Sellers may declare this Contract void and the Premises, together with all improvements and furnishings, and all payments made and all considerations given under this Contract shall be forfeited to the Sellers as liquidated damages and the Sellers may declare the unpaid balance of this Contract due forthwith, and the Sellers may take possession of the Premises without notice, and remove thereform [sic] the Buyer or anyone claimed under her. Any occupancy of the Premises thereafter by the Buyer or her agents, with or without consent of the Sellers shall be deemed to be a tenancy at the will of the Sellers.

Generally, liquidated damage provisions are prima facie valid. Thus, the party challenging the provision must establish[*547] that its application amounts to a penalty. Silver Dollar Club v. Cosgriff Neon, 80 Nev. 108, 389 P.2d 923 (1964); see also Freedman v. Rector, Etc., 230 P.2d 629 (Ca. 1951). In order to prove a liquidated damage clause constitutes a penalty, the challenging party must persuade the court that the liquidated damages are disproportionate to the actual damages sustained by the injured party. Silver Dollar Club v. Cosgriff Neon, 80 Nev. 108, 389 P.2d 923 (1964).

At trial respondent introduced evidence that she made partial payments of $120,100.85 and expenditures of $48,500.00 in permanent capital improvements while in possession of the property. It was also established that respondent significantly increased the rental income of the property while in her possession. Additionally, respondent presented the testimony of an expert witness who stated the property had a fair market value in excess of $900,000.00.

In contrast, the record reflects appellants failed to present any persuasive evidence to suggest they had sustained actual damages as a result of respondent’s failure to perform the contract. Consequently, the district court found that the liquidated damage clause at issue constituted a penalty.

On this record, we cannot say the district court erred in finding the parties liquidated damage clause to be a penalty.

In support of her claim for restitution based on the theory of unjust enrichment, respondent relies on Kitchin v. Mori, 84 Nev. 181, 437 P.2d 865 (1968). In Kitchin v. Mori, we determined that a defaulting buyer may recover payments previously made by him, upon a showing that the payments exceed the amount of the seller’s damage. We stated, “[ejven a wilfully defaulting vendee may recover the excess of his part payments over the damges caused by his breach.”

Here, the record establishes that respondent expended a total of $168,600.85 in partial performance of the contract. Additionally, respondent clearly established that appellants did not incur any actual damages as a result of her breach.

Accordingly, we conclude that the district court did not err in awarding respondent $83,600.85 in partial restitution based on the theory of unjust enrichment.

Finally, in her cross-appeal, respondent challenges the district court’s computation of damages in awarding partial restitution.

In its findings of fact, the district court stated: “plaintiff is[*548] entitled to partial restitution for her part payments in the amount of $120,100.85 plus capital improvements in the amount of $48,500.00 minus rents in the amount of $85,000.00 for a total of $83,600.85 in damages.”

Respondent complains that the court failed to credit her with $71,030.17 in expenses incurred to earn rental income, while in possession of the property. Certain witnesses testified to expenses allegedly incurred by respondent while she was in possession of the property at issue. Many of these alleged expenses were challenged by appellants as being unnecessary and unsupported by the facts. The court weighed the testimony of all the witnesses and chose to credit respondent with actual payments expended on the property, less income earned from said property. The trial court’s findings will not be disturbed on appeal, where they are supported by substantial evidence. Franklin v. Bartsas Realty, Inc., 95 Nev. 559, 598 P.2d 1147 (1979).

Accordingly, we conclude respondent’s cross-appeal is without merit and affirm the district court’s judgment in its entirety.

Gunderson, C. J., Manoukian, Springer, and Mowbray, JJ., and Zenoff, Sr. J., [1] concur.