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Case Citation
Legal Case Name

VANDERBILT UNIVERSITY v. DiNARDO Case Brief

United States Court of Appeals, Sixth Circuit1999
174 F.3d 751 Contracts Remedies Civil Procedure

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: A university sued its former football coach for breaching his employment contract. The court upheld a liquidated damages clause requiring the coach to pay his remaining salary, finding it a reasonable estimate of hard-to-calculate damages like harm to program stability, not an unenforceable penalty.

Legal Significance: This case provides a modern framework for analyzing liquidated damages clauses in unique employment contracts. It holds that a formula based on an employee’s salary can be a reasonable forecast of damages that are inherently difficult to quantify, such as loss of stability and prestige.

VANDERBILT UNIVERSITY v. DiNARDO Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Gerry DiNardo signed a five-year employment contract to be Vanderbilt University’s head football coach. The contract contained a reciprocal liquidated damages provision in Section 8: if DiNardo resigned to take a coaching position elsewhere, he would pay Vanderbilt his net salary for the remaining years of the contract; if Vanderbilt terminated him without cause, it would pay him the same. The contract explicitly stated that a “long-term commitment” was of the “essence” to ensure a “stable intercollegiate football program.” Before the original term expired, Vanderbilt offered a two-year contract extension via an Addendum. DiNardo signed it but testified he made his signature conditional on the approval of his brother and attorney, Larry DiNardo. Vanderbilt’s counsel later sent an unsigned “draft Addendum” to Larry DiNardo and solicited his “comments.” Subsequently, DiNardo accepted a head coaching position at Louisiana State University with more than one year left on his original contract. Vanderbilt sued for breach, seeking liquidated damages for the full, extended term.

Court Holding & Legal Precedent

Issue: Is a liquidated damages clause in a university head coach’s employment contract, which requires the coach to pay the university his net salary for the remaining years of the term if he breaches by taking another coaching position, an enforceable liquidated damages provision or an unenforceable penalty?

The court held that the liquidated damages clause was an enforceable provision, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur

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IRAC Legal Analysis

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Legal Issue

Is a liquidated damages clause in a university head coach’s employment contract, which requires the coach to pay the university his net salary for the remaining years of the term if he breaches by taking another coaching position, an enforceable liquidated damages provision or an unenforceable penalty?

Conclusion

This case establishes that liquidated damages based on an employee's salary can Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in volupta

Legal Rule

Under Tennessee law, a liquidated damages provision is enforceable if it is Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident

Legal Analysis

The court affirmed the enforceability of the liquidated damages clause by focusing Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui

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Flash Summary

  • A liquidated damages clause in a coach’s contract based on remaining
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in cul

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