Practice point: There is no cause of action to recover for breach of the implied covenant of good faith and fair dealing where the alleged breach is intrinsically tied to damages alleged from a breach of the contract itself.
Practitioners should note that a liquidated damages clause must set forth the compensation for any loss or injury flowing from a breach.
Case: Deer Park Enters., LLC v. Ail Sys., Inc., NY Slip Op 09945 (2d Dept. 2008)
The opinion is here.
Tomorrow’s issue: Law of the case.
