Samson Sales, Inc. v. Honeywell, Inc.

465 N.E.2d 392 (1984)

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Samson Sales, Inc. v. Honeywell, Inc.

Ohio Supreme Court
465 N.E.2d 392 (1984)

SC
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Facts

Samson Sales (Samson) (plaintiff) entered into a contract with Honeywell (defendant), under which Honeywell would install an alarm system in Samson’s store for $1,500 and operate the system for $150 per month for five years. The contract contained a clause limiting Honeywell’s liability to $50 in the event it failed to properly perform under the contract. Samson’s store was broken into and the Honeywell alarm did not go off. Samson lost approximately $68,000 in merchandise and brought suit to recover that amount. The trial court granted summary judgment for Samson, but only in the amount of the $50 provided for in the contract. Samson appealed and the appellate court reversed, determining the clause to be an invalid penalty. Honeywell appealed.

Rule of Law

Issue

Holding and Reasoning (Kerns, J.)

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