Caincare, Inc. v. Ellison
Court of Appeals of Georgia
1Opinion of the Court
Adams, Judge.
This case concerns whether a liquidated damage clause contained in a sales agreement between Caincare, Inc. and Discount Drug of Dalton, Ga., Inc. is a reasonable estimate of damages or an unenforceable penalty.
On January 1,2002, Discount Drug entered into an agreement to sell its Valu-Rite pharmacy to Caincare. Pursuant to the agreement, Caincare was required to extinguish all vestiges of the Valu-Rite name from its business, and it did so with a single exception: ‘Valu-Rite” still appeared in small print at the top of faxes sent out by Caincare, even though Caincare was using…
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