On December 3, 2024, the First Department issued a decision in 2M Hospitality Group, LLC v. Sahara Plaza, LLC, 2024 NY Slip Op. 06003, holding that a contract provision barring money damages was enforceable in the absence of intentional misconduct, explaining:
Defendant demonstrated that money damages are barred by article 63 of the parties’ commercial lease, which limits plaintiffs’ damages, if any, to specific performance, injunction, or declaratory relief. We reject plaintiff’s argument that article 63 is unenforceable as against public policy. Even drawing all inferences in the light most favorable to plaintiff, the complaint does not allege that defendant engaged in misconduct that would constitute a willful, bad-faith breach of the lease rendering article 63 unenforceable. Rather, the complaint alleges that defendant declined to reopen its business after New York State’s COVID-19 in-person dining restrictions were lifted. This decision does not constitute intentional wrongdoing unrelated to any legitimate economic self-interest, which would be required to find article 63 unenforceable.
(Internal quotations and citations omitted).