2nd Circ. Backs Matrix Realty's $9M Contract Penalty

Law360, New York (June 30, 2011, 5:54 PM EDT) -- The Second Circuit on Thursday affirmed a $9 million penalty for Matrix Realty Group Inc. after the company reneged on an agreement to buy a string of Dunkin’ Donuts franchises out of bankruptcy for $27 million.

In a summary order, the appeals court upheld the $9 million breach of contract judgment and flatly rejected Matrix’s claim that it properly terminated the sales contract for some 27 Dunkin’ Donuts locations in Westchester, N.Y., after Dunkin as franchisor objected to the deal.

The Second Circuit agreed with both...
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