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Contract Penalty Provisions and Clauses

Liquidated damage clauses in contracts are enforceable, while penalty clauses are not. Paragon Group, Inc. v. Ampleman, 878 S.W.2d 878, 880 (Mo. Ct. App. 1994). The reason for this is that the policy behind remedies in the event of a breach of contract is to effect compensation, not a penalty. Luna v. Smith, 861 S.W.2d […]

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Nominal Damages

Broadly speaking, there are three types of damages in Missouri: (a) compensatory damages, (b) punitive damages and (c) nominal damages. Compensatory damages often form the core of a damages award. With compensatory damages, the goal of a court/jury is to award an amount of money damages that makes the plaintiff whole; specifically, the court/jury is […]

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Punitive Damages

Many people ask about punitive damages because they read about large jury awards in which steep punitive damages are levied against a Defendant. First, what are punitive damages? Second, how are they calculated? Punitive damages are simply a monetary sanction to punish a litigant for egregious conduct and/or to deter other individuals/entities from similar offenses […]

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