Fretwell v. Protection Alarm Co.
764 P.2d 149.
Facts: The Fretwells were burgled. They sued Protection, their alarm company, for negligence. In the contract between “Fretwell, Inc.” and Protection, there was a clause that said damages shall be limited to $50 “as liquidated damages, not as a penalty”. The Fretwells won at trial and Protection appealed.
Issue: Is the clause limiting damages enforceable?
Analysis: The court finds that cases previously decided based
Conclusion: The court reversed the verdict and remanded the case back to the lower court.