Banc of Am. Sec. LLC v. Solow Bldg. Co. II, L.L.C

In Banc of Am. Sec. LLC v. Solow Bldg. Co. II, L.L.C., 47 AD3d 239, 244, 847 N.Y.S.2d 49 (1st Dept 2007), the court denied the defendant's motion for partial summary judgment and found cause to override the liquidated damages provision because there was a question of fact as to whether the defendant acted in bad faith and attempted to commit economic duress. Id. at 249-250. The defendant's "misconduct extended well beyond a simple breach of the parties' agreement, seeking to impose upon the Plaintiff a new contractual burden unrelated to the lease." Id. at 248. The court stated that this behavior could manifest intent to inflict monetary harm, which would make the liquidated damages provision non-enforceable. Id. at 250.