This section contains the nature of the case and procedural background.

Dinardo (D) and Vanderbilt (P) executed a contract under which D was to be P’s head football coach. D promised to work for P for the entire 5-year term of the contract and if for any reason, he left his employ with P prior to the expiration of the contract, that D would pay to P liquidated damages in the amount of net pay less sums withheld for taxes multiplied by the number of years remaining on the contract. During negotiations, D got P to modify the provisions of the liquidated damages clause so it would be calculated on his net pay rather than gross pay. D expressed a desire to have his contract extended, and P and D discussed extending it by two years. D was presented with an extension for an additional two years, and D signed the extension. At the time of the signing, D was told that his present contract as exists was to be extended for the two years with everything else remaining the same. On December 12, 1994, D announced his decision to accept a job with LSU and resigned his employment with P. D now contends that the liquidated damages provision is a penalty. Both P and D moved for summary judgment.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.