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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: November 29, 2015

First Department Upholds Contract Provision Limiting Damages

On November 19, 2015, the First Department issued a decision in MG Hotel, LLC v. Bovis Lend Lease, LMB, Inc., 2015 NY Slip Op. 08507, upholding a contractual provision limiting the damages that could be recovered for breach of the contract, explaining:

The written warranty that Trane provided to plaintiff expressly provided plaintiff the limited remedy of reimbursement of the purchase price for any defective units, waived any liability for consequential and incidental damages, and waived the implied warranties of merchantability and fitness for a particular purpose. The motion court, in granting Trane’s motion for partial summary judgment, properly upheld these warranty provisions. The exclusive remedy provision does not fail of its essential purpose, and the waiver of liability for consequential and incidental damages is not unconscionable.

(Internal quotations and citations omitted).

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