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Entergy Services, Inc. v. Union Pacific Railroad Co.
United States District Court for the District of Nebraska
35 F. Supp. 2d 746 (1999)
Union Pacific Railroad Co. (Union Pacific) (defendant) delivered coal to power plants owned by Entergy Services, Inc. (Entergy) (plaintiff). The parties’ agreement provided that each month Entergy would inform Union Pacific of how much coal it needed, and Union Pacific would deliver the coal. The agreement obligated Union Pacific to make up any shortfalls within three months. The agreement had a liquidated-damages clause that stated that if Union Pacific committed a breach, it “shall” pay a certain amount in liquidated damages to compensate Entergy for obtaining an alternate supply of coal. The clause did not identify Union Pacific’s liquidated damages as the exclusive remedy available to Entergy. Union Pacific breached the contract, and Entergy sued, seeking liquidated damages and additional consequential damages. Both Entergy and Union Pacific moved for summary judgment. Union Pacific argued that Entergy was entitled to recover only liquidated damages. Entergy argued that it was not limited to a recovery of liquidated damages. The district court considered both parties’ motions.
Rule of Law
Holding and Reasoning (Strom, J.)
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