Security Safety Corp. v. Kuznicki

The defendants, Edmund and Rachel Kuznicki, signed a written contract with the plaintiff for the installation of a fire detection system on their premises in Blandford for the sum of $498. Their cancellation presents the question of the validity of a provision that “In the event of cancellation of this agreement . . . the owner agrees to pay 33%% of the contract price, as liquidated damages.” The trial judge held that the provision was unreasonable and void as a penalty. He found for the plaintiff in the amount of $1, and reported the correctness of his finding to the Appellate Division,…