AT & T Information Systems Inc. v. Enterprises, A.B.C., Inc.

AT & T was a defendant in a suit brought by one of its customers, American Bilingual School (American), to recover damages occasioned by periodic break downs in a newly installed communication system. The case went to the jury on issues of breach of contract and negligence. A verdict of $75,000 for the plaintiff was returned. AT & T appeals from orders denying its motion for a new trial on damages or for remittitur.

At issue is the clarity of paragraph 15 of a Service/Purchase Agreement which pro*653vides an exclusive remedy and limits damages in the event of equipment failure. Paragraph 15…