Teachers' Retirement System v. American Title Guaranty Corp.

By Judge Thomas S. Kenny

This matter is before the court on Plaintiffs Second Supplemental and Renewed Motion for Summary Judgment and Defendant’s Renewed Cross Motion for Summary Judgment. At issue here is whether an acceleration clause in a commercial lease amounts to permissible liquidated damages or to an unenforceable penalty.

Plaintiff is the landlord under a three-year commercial lease that runs from February 18, 1994, to February 17, 1997. Defendant failed to pay rent, which triggered the lease’s default and damage provisions. See Lease ¶¶ 14.2 to 14.3. The landlord terminated the lease…