Credit: FellowNeko Appellate Court Reverses Judgment for Commercial Landlord in Tenant Default Case: 'Acceleration Clause Is an Unenforceable Penalty'
"A provision such as this bears no reasonable relationship to expected damages and is thus unenforceable as a penalty," Associate Justice Sookyoung Shin wrote on behalf of the unanimous panel.
December 16, 2022 at 03:46 PM
5 minute read
The Massachusetts Appeals Court recently reversed an $82,000 judgment in favor of a landlord in a tenant default matter, finding that a provision of a commercial lease that accelerated the remaining rent as liquidated damages is unenforceable as a penalty.
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