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Contracts Keyed to Templin
Rodriguez v. Learjet, Inc.
Citation:
946 P.2d 1010, 24 Kan. App. 2d 246 (Kan. Ct. App. 1997)Facts
On August 21, 1992, Miguel A. Diaz Rodriguez executed a contract with Learjet, Inc. to purchase a model 60 jet aircraft. The contract required a $250,000 deposit upon execution, a $750,000 payment on September 18, 1992, a $1,000,000 payment 180 days before the July 30, 1993 delivery date, and the balance upon delivery. Rodriguez paid only the initial $250,000 deposit. In late September 1992, Rodriguez’s supervisor at Televisa, who had requested the purchase, informed Rodriguez he no longer wanted the aircraft. After Rodriguez failed to make the required payments, Learjet terminated the contract on October 20, 1992, and retained the $250,000 deposit as liquidated damages pursuant to their agreement. Learjet subsequently sold the aircraft to Circus Circus Enterprises, Inc., realizing a profit of $1,887,464, which exceeded their originally budgeted profit. Rodriguez sued to recover his deposit, arguing that Learjet’s retention of the full amount was unreasonable and constituted an unenforceable penalty.
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