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Samson Sales, Inc. v. Honeywell, Inc.

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


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


Holding and Reasoning (Kerns, J.)

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