Warning

Info

Table of Contents
UnreasonableWoman, SLS '24 |

0 0

Back to briefs

TAL Financial Corp. v. CSC Consulting, Inc.

(2006)

Massachusetts Supreme Judicial Court - 844 N.E.2d 1085, 446 Mass. 422

tl;dr:

Plaintiff leased IT materials to a company later acquired by Defendant. When the company moved to relocate to Defendant’s main office, however, they ditched Plaintiff’s materials and documents, and Plaintiff called this a default.

Video Summary


Case Summary

In the TAL Financial Corp. v. CSC Consulting, Inc. (2006) case, the Massachusetts Supreme Judicial Court handled a dispute about liquidated damages in a contract breach scenario. A consulting company breached a lease agreement involving office equipment, which allowed the finance company to recover certain liquidated damages. When the consulting company didn't pay and got rid of the equipment, the finance company sued to recover. The trial court concluded the liquidated damages clause was unenforceable as a penalty, and the higher court agreed.

The Supreme Judicial Court used a test of reasonable foreseeability, which needed higher probability than in tort law. They found that the clause didn't account for the kind or timing of the default, and it was too disproportionate to expected damages, making it a penalty. The court also observed no evidence that the parties considered such substantial damages when forming the contract.

This case's significance lies in showcasing and applying liquidated damages principles in contract law and differentiating them from tort law. It demonstrates how courts evaluate the proportionality and foreseeability of liquidated damages when deciding their enforceability. This case remains relevant and cited as a key authority on the topic.

ICRAIssue, Conclusion, Rule, Analysis for TAL Financial Corp. v. CSC Consulting, Inc.

LSD+ exclusive

This content is exclusively for LSD+ users.

Sign up for LSD+ for full access to the TAL Financial Corp. v. CSC Consulting, Inc. case brief summary.

Enjoy unlimited access with our 14-day free trial.

Facts & HoldingTAL Financial Corp. v. CSC Consulting, Inc. case brief facts & holding

Facts:Plaintiff leased IT materials to a company later acquired by...

Holding:Liquidated damages will not be enforced if the sum is...

LSD+ exclusive

This content is exclusively for LSD+ users.

Sign up for LSD+ for full access to the TAL Financial Corp. v. CSC Consulting, Inc. case brief summary.

Enjoy unlimited access with our 14-day free trial.

DeepDiveHighlight a legal term to see the definition

Font size -+
TAL Financial Corp. v. CSC Consulting, Inc. | Case Brief DeepDive
Majority opinion, author: Greaney, J.
Level 1
Click below 👇 to DeepDive

The case involves a lease agreement between TAL Financial Corporation and Onward Technologies, Inc. (now CSC Consulting, Inc.) for computer hardware, telephone equipment, software, and office furniture. TAL was awarded $9,471 in contract damages, but the liquidated damages provision was deemed unenforceable. TAL appealed the damages calculation and the judge's conclusion on liquidated damages, while CSC cross-appealed the award of attorney's fees and costs. The Massachusetts Supreme Judicial Court affirmed the judgment awarding damages and costs to TAL but vacated the award of attorney's fees. CSC assumed Onward's legal and financial obligations under the master lease with TAL. After the merger, most of the leased equipment and furniture were discarded during the move of Onward's employees to CSC's offices, and the lease documents were misplaced. CSC continued to make monthly payments as per the schedules, even for items it did not have. CSC expressed its intent to pay the balance of the account in full, and TAL provided a "payoff" schedule indicating an amount of $66,056.80 still owed by CSC under the lease. CSC paid an additional $15,344.72 but has made no further payments since May 2001. TAL demanded immediate payment of the remaining receivable balance, including late charges, and the return of all equipment. CSC offered to pay TAL $9,510.25 in full and final settlement of all matters arising from the lease, but TAL rejected the offer and did not want any of the leased items returned.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

LSD+ exclusive

This content is exclusively for LSD+ users.

Sign up for LSD+ for full access to the TAL Financial Corp. v. CSC Consulting, Inc. case brief summary.

Enjoy unlimited access with our 14-day free trial.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

🤯 High points 🤯Key points contributed by students on LSD

LSD+ exclusive

This content is exclusively for LSD+ users.

Sign up for LSD+ for full access to the TAL Financial Corp. v. CSC Consulting, Inc. case brief summary.

Enjoy unlimited access with our 14-day free trial.

LSD+ Case Briefs

Features

  • DeepDive for detailed case analysis
  • Over 50,000 existing case briefs
  • Instant briefs for another 6,000,000 cases
  • Highlight dictionary for legal term definitions
  • Social learning with chat and high points

Over 50,000 Cases Briefed

LSD+ gives you access to over 50,000 case briefs, more than anyone else. Be the first to email us the website of a case brief product that offers you more case briefs and we'll give you a free year of LSD+.

14-Day Free Trial

Unlimited access. Read as much content as you want during your trial with no device limitations. Cancel any time during your trial and keep access for the full 14 days.

Integrated Legal Dictionary

Lawyers and judges love to use big words. And Latin, for some reason.

Highlight a legal term in LSD Briefs and get an instant, plain English definition. Try highlighting contract or specific performance. No need to search or read through a list of definitions, simply highlight the words you don’t know and our LSDefine integration will instantly give you a definition to any of over 30,000 legal terms.

DeepDive

DeepDive allows you to explore legal cases like never before. DeepDive offers multiple levels of case summaries, which empowers you to quickly and easily find the information you need to stay on top of readings. Easily navigate through summary levels and click on any text to get more detail, all the way down to the original legal case text.

Brief anything. Instantly.

Our proprietary state-of-the-art system can instantly brief over 6,000,000 US cases. That means we can probably brief that case that your professor assigned last night when she sent you a poorly scanned pdf and told you to read every third paragraph. Or maybe she uploaded it to Canvas and didn’t really tell you to read it, but you know you probably should. Tenure does wild things to good people.

Social Learning with Chat and High Points

Study groups are a great way to learn and explore a case. LSD has chat rooms for each case to let you ask questions across the community and hear what other students struggled with and how they put it all together. Learn the key points of every case from other LSD+ users and share your knowledge with LSD High Points.

Real-Time Brief Feedback

Don’t settle for mistakes in briefs that have been there for 10 years and never fixed. Find an issue or something missing from a brief? Down vote and we will make improvements. All of our case brief editors graduated from from T14 law schools.

TAL Financial Corp. v. CSC Consulting, Inc.

Chat for TAL Financial Corp. v. CSC Consulting, Inc.
brief-259
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
LSD+ is ad-free, with DMs, discounts, case briefs & more.