It is diff icult to predict how a court will rule on the enforce-
abilit y of a pa r ticula r liquidated da mages provision. In one
recent case, a n appellate cour t upheld a liquidated da mages
clause of $50,000 or 50% of the physicia n's last yea r of pro-
ductivity or sa la r y (whichever was greater), while in a nother
recent appel late ca se t he cour t str uck dow n a prov ision
requiring the payment of 150% of the physicia n's W-2 g ross
income a nd bonus for his last yea r of employ ment ( g rossly
disproportionate to the defendant 's anticipated loss). In many
insta nces, the rea l va lue of the liquidated da ma ges clause
will be one of deterrence.
Bruce Wood is a member at CCB Law, a boutique law firm focused
on providing counsel to physicians and healthcare professionals.
He can be reached at 315-477-6292 or bwood@ccblaw.com.
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