LOCAL AREA TELECOMMS., INC. v. METRO. TRANSIT AUTH.


181 A.D.2d 409 (1992)

Local Area Telecommunications, Inc., Respondent, v. Metropolitan Transit Authority, Appellant

Appellate Division of the Supreme Court of the State of New York, First Department.

March 3, 1992


This is an action for breach of contract in which plaintiff seeks the payment of a cancellation penalty. By an agreement dated April 23, 1985, plaintiff agreed to install and maintain telecommunications equipment on the defendant's premises. The agreement required the defendant to pay $3,000 per month for a term not to exceed twenty months. The agreement further provided that it could be cancelled on thirty days notice with a penalty of $20,000, with the sum reduced by 1...

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