Gary Outdoor Advertising Co. v. Sun Lodge

650 P.2d 1222 (1982)

Study Aids
Case Briefs Overview
Casebooks
Case Briefs
G
From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

Gary Outdoor Advertising Co. v. Sun Lodge

Arizona Supreme Court
650 P.2d 1222 (1982)

JW

Facts

Sun Lodge (Lodge) (defendant) leased two advertisement signs from Gary Outdoor Advertising Co. (Outdoor) (plaintiff). Each lease was for a 36-month term with monthly payments. Throughout the leases, Outdoor was responsible for maintaining the signs and paying taxes and insurance on them. The lease agreements included a term stating that if Lodge missed two monthly payments, then Outdoor could take back the signs and compel Lodge to immediately pay all the monthly payments remaining under the leases. Lodge’s payment of the remaining rents was identified as liquidated damages. Lodge in fact did miss two monthly payments, and Outdoor sued to recover the roughly 30 months of rent remaining under each contract. However, Outdoor also rented one of the signs to a new tenant a month after Lodge’s breach, and Outdoor then sold both signs six months after that. The trial court ruled in favor of Lodge on the basis that the liquidated-damages provision was in fact a penalty for breach. Outdoor appealed.

Rule of Law

Issue

Holding and Reasoning (Shelley, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 810,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 810,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 810,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Contracts

Key Terms