Smelkinson SYSCO v. Harrell

RAYMOND G. THIEME, JR., Judge, Retired, Specially Assigned.

Appellant Smelkinson SYSCO, Inc. (SYSCO), 1 asks us to enforce the stipulated damages provision of a Settlement Agreement and General Release that the company entered into with former employee James E. Harrell, appellee. The parties agreed, inter alia, that, if Harrell breached the agreement, SYSCO’s damages would include the $185,000 the company paid to settle pending and future disputes with Harrell. Challenging the trial court’s ruling that this clause is an unenforceable penalty for Harrell’s breach of that agreement, SYSCO raises…