Carr-Gottstein Properties, Ltd. Partnership v. Benedict

72 P.3d 308 (2003)

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Carr-Gottstein Properties, Ltd. Partnership v. Benedict

Supreme Court of Alaska
72 P.3d 308 (2003)

SC

Facts

Carr-Gottstein Properties, Ltd. Partnership (Carr-Gottstein) (plaintiff) developed a subdivision and executed a Declaration of Covenants, Conditions and Restrictions to be followed by individuals who developed lots in the subdivision. One of the covenants was that any construction on a lot had to be completed within one year. The covenant contained a liquidated damages clause assessing a $25 daily fine for any breach of the covenant. Benedict bought a lot in the subdivision and began construction on September 20, 1999. On October 31, 2000, construction was not complete and Carr-Gottstein gave Benedict written notice of the breach. Carr-Gottstein brought suit, and filed a motion for partial summary judgment on the issue of whether Benedict breached the covenant. Benedict filed a cross motion for summary judgment that the liquidated damages clause was invalid. The trial court granted both motions for summary judgment. The court found that Benedict has violated the covenant, but that the liquidated damages clause was impermissible. Carr-Gottstein appealed.

Rule of Law

Issue

Holding and Reasoning (Fabe, C.J.)

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