BUI v. INDUSTRIAL ENTERPRISES OF AMERICA, INC.


41 A.D.3d 238 (2007)

836 N.Y.S.2d 870

TRINITY BUI et al., Appellants, v. INDUSTRIAL ENTERPRISES OF AMERICA, INC., et al., Respondents.

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

Decided June 19, 2007.


The provision in the promissory note calling for payment of $2,000 a day should defendant fail to pay the judgment in a timely fashion is an unenforceable penalty. Should plaintiff be found to be entitled to damages, they would be easily ascertainable, and thus the true purpose of the provision was to "secure performance by threat of a large payment rather than to provide a reasonable assessment of probable damages" (Quaker Oats Co. v Reilly, 274 A...

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