Honey Dew Associates, Inc. v. M & K Food Corp.
Court of Appeals for the First Circuit
1Opinion of the Court
LIPEZ, Circuit Judge.
The trial in the district court was about the breach of a franchise agreement and the reasonableness of a liquidated damages clause. The court refused to enforce the liquidated damages clause, deeming it a penalty. We conclude that the court misallocated the burden of proof and lacked an adequate factual basis for its penalty determination. We therefore vacate the judgment and remand for further proceedings.
I
Bowen Investment Inc. (“Bowen”), a sub-franchisor of Honey Dew Associates, Inc. (“Honey Dew”), entered into a franchise agreement with M & K Food Corporation (“M &…
2Cases cited8 opinions
- Zapatha v. Dairy Mart, Inc.Massachusetts Supreme Judicial Court · 1980
- A-Z Servicenter, Inc. v. SegallMassachusetts Supreme Judicial Court · 1956
- Kelly v. MarxMassachusetts Supreme Judicial Court · 1999
- Norwalk Door Closer Co. v. Eagle Lock & Screw Co.Supreme Court of Connecticut · 1966
- Frank X. Losacco v. F.D. Rich Construction Co., Inc.Court of Appeals for the First Circuit · 1993
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- Kunelius v. Town of StowCourt of Appeals for the First Circuit · 2009
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