liquidated damages clause (Alabama) · Go Syfert
← Alabama issues

liquidated damages clause in Alabama

8 Alabama opinions name it 2 courts 1991–2026 1 in the last five years

The cases below were cited by Alabama courts in a sentence that names this issue. Sides come from how each citing opinion treated the case (Syfertize flag on that citation), so a case can appear on both: that is where the law is contested. A red or yellow chip is the case's own overall treatment.

Followed or applied (9)

CaseFollowedCited
Camelot Music, Inc. v. MARX REALTY & IMP. CO.green
ala · 1987 · cited in 3 Alabama opinions naming this issue, 2001–2026
2 sentences

2026The Camelot Court held that the provision in that case did not constitute a penalty provision because the recovery provided for was reasonably related to the loss that resulted from the breach of the lease. 514 So. 2d at 991 ("Because the liquidated damages assessed here are those that [the lessee] reasonably could have expected to result from its breach of the contract, we hold that the liquidated damages clause of the contract was not a penalty ….").

2010“Th[e Supreme] Court set forth the criteria for assessing the validity of liquidated damages clauses in Camelot Music, Inc. v. Marx Realty & Improvement Co., 514 So.2d 987 (Ala.1987): “Tt is true in Alabama that, because penalty provisions are void as against public policy, “Courts ... are disposed to lean against any interpretation of a contract which will make the provision one for liquidated damages and, in all cases of doubtful intention, will pronounce the stipulated sum a penalty.” Cook v. Brown, 408 So.2d 143, 144 (Ala.Civ.App.1981); see also, Keeble v. Keeble, 85 Ala. 552 , 5 So. 149 (

13
Keeble v. Keeblegreen
ala · 1888 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010“Th[e Supreme] Court set forth the criteria for assessing the validity of liquidated damages clauses in Camelot Music, Inc. v. Marx Realty & Improvement Co., 514 So.2d 987 (Ala.1987): “Tt is true in Alabama that, because penalty provisions are void as against public policy, “Courts ... are disposed to lean against any interpretation of a contract which will make the provision one for liquidated damages and, in all cases of doubtful intention, will pronounce the stipulated sum a penalty.” Cook v. Brown, 408 So.2d 143, 144 (Ala.Civ.App.1981); see also, Keeble v. Keeble, 85 Ala. 552 , 5 So. 149 (

11
Waltman v. Rowellgreen
ala · 2005 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010Standard of Review “ ‘ “ ‘[W]hen a trial court hears ore tenus testimony, its findings on disputed facts are presumed correct and its judgment based on those findings will not be reversed unless the judgment is palpably erroneous or manifestly unjust.’ ” ’ Water Works & Sanitary Sewer Bd. v. Parks, 977 So.2d 440, 448 (Ala.2007) (quoting Fadalla v. Fadalla, 929 So.2d 429, 438 (Ala.2005), quoting in turn Philpot v. State, 843 So.2d 122, 125 (Ala.2002)). ‘ “The presumption of correctness, however, is rebuttable and may be overcome where there is insufficient evidence presented to the trial court

11
Dennis v. Dobbsgreen
ala · 1985 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010Standard of Review “ ‘ “ ‘[W]hen a trial court hears ore tenus testimony, its findings on disputed facts are presumed correct and its judgment based on those findings will not be reversed unless the judgment is palpably erroneous or manifestly unjust.’ ” ’ Water Works & Sanitary Sewer Bd. v. Parks, 977 So.2d 440, 448 (Ala.2007) (quoting Fadalla v. Fadalla, 929 So.2d 429, 438 (Ala.2005), quoting in turn Philpot v. State, 843 So.2d 122, 125 (Ala.2002)). ‘ “The presumption of correctness, however, is rebuttable and may be overcome where there is insufficient evidence presented to the trial court

11
Water Works & Sanitary Sewer Bd. v. Parksgreen
ala · 2007 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010Standard of Review “ ‘ “ ‘[W]hen a trial court hears ore tenus testimony, its findings on disputed facts are presumed correct and its judgment based on those findings will not be reversed unless the judgment is palpably erroneous or manifestly unjust.’ ” ’ Water Works & Sanitary Sewer Bd. v. Parks, 977 So.2d 440, 448 (Ala.2007) (quoting Fadalla v. Fadalla, 929 So.2d 429, 438 (Ala.2005), quoting in turn Philpot v. State, 843 So.2d 122, 125 (Ala.2002)). ‘ “The presumption of correctness, however, is rebuttable and may be overcome where there is insufficient evidence presented to the trial court

11
Fadalla v. Fadallagreen
ala · 2005 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010Standard of Review “ ‘ “ ‘[W]hen a trial court hears ore tenus testimony, its findings on disputed facts are presumed correct and its judgment based on those findings will not be reversed unless the judgment is palpably erroneous or manifestly unjust.’ ” ’ Water Works & Sanitary Sewer Bd. v. Parks, 977 So.2d 440, 448 (Ala.2007) (quoting Fadalla v. Fadalla, 929 So.2d 429, 438 (Ala.2005), quoting in turn Philpot v. State, 843 So.2d 122, 125 (Ala.2002)). ‘ “The presumption of correctness, however, is rebuttable and may be overcome where there is insufficient evidence presented to the trial court

11
Cook v. Browngreen
alacivapp · 1981 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010“Th[e Supreme] Court set forth the criteria for assessing the validity of liquidated damages clauses in Camelot Music, Inc. v. Marx Realty & Improvement Co., 514 So.2d 987 (Ala.1987): “Tt is true in Alabama that, because penalty provisions are void as against public policy, “Courts ... are disposed to lean against any interpretation of a contract which will make the provision one for liquidated damages and, in all cases of doubtful intention, will pronounce the stipulated sum a penalty.” Cook v. Brown, 408 So.2d 143, 144 (Ala.Civ.App.1981); see also, Keeble v. Keeble, 85 Ala. 552 , 5 So. 149 (

11
Philpot v. Stategreen
ala · 2002 · cited in 1 Alabama opinions naming this issue, 2010–2010
1 sentence

2010Standard of Review “ ‘ “ ‘[W]hen a trial court hears ore tenus testimony, its findings on disputed facts are presumed correct and its judgment based on those findings will not be reversed unless the judgment is palpably erroneous or manifestly unjust.’ ” ’ Water Works & Sanitary Sewer Bd. v. Parks, 977 So.2d 440, 448 (Ala.2007) (quoting Fadalla v. Fadalla, 929 So.2d 429, 438 (Ala.2005), quoting in turn Philpot v. State, 843 So.2d 122, 125 (Ala.2002)). ‘ “The presumption of correctness, however, is rebuttable and may be overcome where there is insufficient evidence presented to the trial court

11
SHADES, ETC. v. Cobbs, Allen & Hall Mortg. Co.green
ala · 1980 · cited in 1 Alabama opinions naming this issue, 2000–2000
2 sentences

2000Co. , 390 So.2d 601 , 611 (Ala. 1980). *Page 467 The contract for the sale of Comer Plantation included a liquidated-damages clause, which provided: "Should the buyer fail to consummate the purchase of the property on or before the Closing Date, the conditions to Buyer's Obligations set forth in this Contract having been satisfied, and Seller not being in default hereunder, Seller may: "(1) Retain the earnest money, and cancel this Contract with each party being relieved of any further obligation to the other hereunder . . . ." After Fisher signed this contract, he sent Locators a check for $5

2000Co., 390 So.2d 601, 611 (Ala.1980). *467 The contract for the sale of Comer Plantation included a liquidated-damages clause, which provided: "Should the buyer fail to consummate the purchase of the property on or before the Closing Date, the conditions to Buyer's Obligations set forth in this Contract having been satisfied, and Seller not being in default hereunder, Seller may: "(1) Retain the earnest money, and cancel this Contract with each party being relieved of any further obligation to the other hereunder...." After Fisher signed this contract, he sent Locators a check for $50,000 as ear

11

Distinguished, questioned or overruled (0)

CaseNegativeCited
No negative-treatment citations attached to this issue in Alabama. Read the followed side critically anyway.

Also cited on this issue (3)

CaseCitedYears
MILTON CONST. CO. v. State Highway Dept. red
ala · 1990
2 sentences

1998Milton Construction Co. v. State Highway Dep't, 568 So.2d 784 (Ala.1990).

1993Because the liquidated damages clause at issue satisfies the three requirements set out in Camelot Music , and recognizing the Alabama Constitution's strong preference for the protection of contractual obligations, Milton Construction Co. , 568 So.2d at 787 , we reverse the judgment of the circuit court and remand the case for further consideration consistent with this opinion.

31991–1998
Gulf City Body & Trailer Works, Inc. v. PHOENIX PROP. TRUST, INC. green
ala · 1988
1 sentence

2002This was the situation in Gulf City Body Trailer Works, Inc. v. Phoenix Properties Trust, Inc ., 531 So.2d 870 (Ala. 1988).

12002–2002
American District Telegraph Co. v. Roberts & Son, Inc. green
ala · 1929
2 sentences

1993In American District Telegraph Co. of Alabama v. Roberts Son, Inc. , 219 Ala. 595 , 122 So. 837 (1929), this Court observed about a similar contractual provision: "As we view this clause, it is but a limitation of the amount recoverable in case of a breach of the contract.

1993In American District Telegraph Co. of Alabama v. Roberts Son, Inc. , 219 Ala. 595 , 122 So. 837 (1929), this Court observed about a similar contractual provision: "As we view this clause, it is but a limitation of the amount recoverable in case of a breach of the contract.

11993–1993

Where else courts name it

NY 115 (1868–2026) IL 76 (1971–2025) TX 71 (1942–2026) CA 65 (1960–2026) OH 43 (1982–2026) CT 38 (1964–2022) FL 37 (1962–2025) MA 37 (1959–2026) IN 35 (1976–2026) MO 30 (1966–2021) PA 26 (1966–2025) GA 24 (1978–2026) MD 22 (1987–2023) NJ 19 (1991–2024) CO 18 (1971–2025) WA 17 (1975–2026) ND 13 (1975–2007) KS 13 (1981–2026) ID 11 (1971–2025) NC 11 (1987–2026) AZ 10 (1989–2022) WI 10 (1975–2025) VA 9 (1988–2025) AL 8 (1991–2026) MI 8 (1986–2026) UT 8 (1993–2013) ME 7 (1985–2022) TN 7 (1985–2019) DE 6 (1992–2021) LA 6 (1962–2018) AK 6 (1977–2012) MN 6 (1986–2024) DC 6 (1969–2019) MT 6 (1976–2020) VT 5 (1991–2025) NH 5 (1990–2020) OR 5 (1979–1998) WV 4 (1994–2024) SD 4 (1984–2005) WY 4 (1978–2015) NM 4 (1986–2020) SC 3 (2013–2024) RI 3 (1992–2009) IA 3 (1976–2024) OK 2 (1988–2008) KY 2 (1985–2024) NV 2 (1990–1993)

Opinions by the citing court's state. A doctrine retained in one state and abandoned in another shows up here as a year span that stalls.

← Caselaw search · G Cite Topics · Brief Check