Addressing System & Products, Inc. v. Friedman

Order, Supreme Court, New York County (Karla Moskowitz, J.), entered November 28, 2007, which, insofar as appealed from, declared that the mutual liquidated damages provisions in the parties’ stock purchase and noncompete agreement did not constitute unenforceable penalties, unanimously affirmed, without costs.

Plaintiffs, in challenging the liquidated damages provisions on the grounds that they constituted unenforceable penalties, did not meet their burden to show either that the damages flowing from a violation of the parties’ mutual noncompete agreement were readily ascertainable at the…