New York courts routinely enforce liability-limitation provisions, especially when negotiated by sophisticated parties. The Appellate Division has recognized an exception to this general rule in cases where a party's alleged misconduct smacks of intentional wrongdoing that is fraudulent, malicious, or prompted by the sinister intention of a party acting in bad faith. The type of intentional wrongdoing that could render a contractual limitation unenforceable is that which is unrelated to any legitimate economic self-interest. Where the conduct in question was undertaken to advance a legitimate economic self-interest, a party is entitled to rely on the contractual limitation provision, notwithstanding the intentional nature of its actions.
Jeffries, LLC v. Mountain State Energy Holdings, LLC, NY Slip Op 05232 (1st Dep't September 3, 2026)