ARTICLE · 24 JANUARY 2023

Do I Have Standing In Florida State Court? Not So Fast

McGlinchey Stafford

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McGlinchey's Commercial Law Bulletin is a biweekly update of recent, unique, and impactful cases in state and federal courts in the area of commercial litigation.

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Joseph A. Apatov

Ohio

Liquidated Damages

Pacetti's Apothecary v. Rebound Bracing & Pain Sol. Inc., 2d Dist. Greene, No. 2023-Ohio-93.

In this appeal, the Second Appellate District affirmed the trial court's decision finding that a late fee provision in a contract was a penalty and not an enforceable liquidated damages clause.

The Bullet Point: While parties are free to enter into contracts that contain damages provisions, for public policy reasons, sometimes such provisions are not enforceable. "One such circumstance is when stipulated damages constitute a penalty. Because the sole purpose of contract damages is to compensate the nonbreaching party for losses suffered as a result of a breach, [p]unitive damages are not recoverable for a breach of contract unless the conduct constituting the breach is also a tort for which punitive damages are recoverable." To determine whether a stipulated damages provision is for liquidated damages or punitive in nature, courts apply the

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