Contracts Keyed to Summers
Vanderbilt University v. DiNardo
Facts
On December 3, 1990, Vanderbilt University (Plaintiff) hired Gerry DiNardo (Defendant) as its head football coach for a period of five years. The employment contract stated that the five-year period was of essence to the contract and essential to the stability of Plaintiff’s football program. Thus, the contract provided that, if Defendant resigned from his position during the contract period and began employment for another institution, he would pay Plaintiff liquidated damages equal to his net salary for the time remaining in his contract. Prior to the expiration of the five-year period, the parties signed an addendum extending the term of the contract by two years. On December 12, 1994, Defendant decided to accept a coaching position at Louisiana State University (LSU). Plaintiff demanded that Defendant pay liquidated damages for the one remaining year under the original contract and two remaining years under the addendum. Defendant did not pay this amount. Plaintiff sued Defendant for breach of contract. Both parties moved for summary judgment. The district court found the liquidated damages provision and the addendum were enforceable and entered judgment in favor of Plaintiff. Defendant appealed.
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