The plaintiff, an air charter broker, brought an action against the defendant airline for breach of a restrictive covenant in a Charter Transportation Agreement.
The defendant argued the covenant was unenforceable, sought rectification for unilateral mistake, and relied on an exclusion clause and the unenforceability of a liquidated damages clause.
The court found the restrictive covenant valid and enforceable, denied rectification as the defendant simply failed to read the contract, and held the exclusion clause did not apply to breach of contract damages.
While the liquidated damages clause was struck as a penalty, the court awarded the plaintiff $1,064,636.32 in compensatory damages for lost profits.
