Section 9 Liquidated Damages

• Library: Damages 2012

A liquidated damages clause in a contract represents the parties’ stipulation that a particular measure of compensation will represent the damages in the event of a breach. Diffley v. Royal Papers, Inc.,948 S.W.2d 244, 246 (Mo. App. E.D. 1997). Liquidated damages take the place of actual damages. Eureka Dev., Inc. v. Port Jefferson Realty, LLC, No. 4:05CV1281 FRB, 2007 WL 2908179, at *2 (E.D. Mo. Oct. 3, 2007) (applying principles of Missouri law). Thus, when there is an enforceable liquidated damages clause, there is no need to prove actual damages, and whether the actual damages are more or less than the liquidated damages is of no consequence. Id.But the plaintiff must show at least some actual harm or damage caused by the breach before a liquidated damages clause is triggered. Grand Bissell Towers, Inc. v. Joan Gagnon Enters., Inc., 657 S.W.2d 378, 379 (Mo...