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BOOTS, INC. v. PREMPAL SINGH

Record No. 062430.

649 S.E.2d 695 (2007)

BOOTS, INC. v. PREMPAL SINGH.

Supreme Court of Virginia.

September 14, 2007.

Attorney(s) appearing for the Case

Mark H. Schmidt, for appellant.

Larry A. Pochucha (Bowen, Champlin, Carr, Foreman & Rockecharlie, on brief), Richmond, for appellee.

Present: HASSELL, C.J., KEENAN, KOONTZ, KINSER, and AGEE, JJ., and CARRICO and LACY, Senior Justices.

OPINION BY Senior Justice HARRY L. CARRICO.

This is an appeal in an interpleader action involving a provision in a real estate contract that makes a cash deposit non-refundable in certain circumstances. The question presented is whether the provision is a valid liquidated damages clause or an impermissible penalty or forfeiture. The circuit court construed the provision as a penalty or forfeiture and ordered the deposit refunded. Finding the circuit court erred, we...

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