D.C. Code § 28:2A-504
This is the official text of D.C. Code § 28:2A-504, part of District of Columbia’s Code — part of the compiled statutory law of District of Columbia, published by the state as "Code." Browse the sections below, each linked to its official government source.
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§ 28:2A-504. Liquidation of damages.
Official statutory text
(a) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor’s residual interest, may be liquidated in the lease agreement, but only at an amount or by a formula that is reasonable in light of the then anticipated harm caused by the default or other act or omission.
(b) If the lease agreement provides for liquidation of damages and the provision does not comply with subsection (a) of this section, or the provision is an exclusive or limited remedy that circumstances cause to fail of its essential purpose, remedy may be had as provided in this article.
(c) If the lessor justifiably withholds or stops delivery of goods because of the lessee’s default or insolvency ( § 28:2A-525 or § 28:2A-526 ), the lessee is entitled to restitution of any amount by which the sum of his or her payments exceeds:
(1) The amount to which the lessor is entitled by virtue of terms liquidating the lessor’s damages in accordance with subsection (a) of this section; or
(2) In the absence of those terms, 20 percent of the then present value of the total rent the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of the amount or $500.
(d) A lessee’s right to restitution under subsection (c) of this section is subject to offset to the extent the lessor establishes:
(1) A right to recover damages under the provisions of this article other than subsection (a) of this section; and
(2) The amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.
(b) If the lease agreement provides for liquidation of damages and the provision does not comply with subsection (a) of this section, or the provision is an exclusive or limited remedy that circumstances cause to fail of its essential purpose, remedy may be had as provided in this article.
(c) If the lessor justifiably withholds or stops delivery of goods because of the lessee’s default or insolvency ( § 28:2A-525 or § 28:2A-526 ), the lessee is entitled to restitution of any amount by which the sum of his or her payments exceeds:
(1) The amount to which the lessor is entitled by virtue of terms liquidating the lessor’s damages in accordance with subsection (a) of this section; or
(2) In the absence of those terms, 20 percent of the then present value of the total rent the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of the amount or $500.
(d) A lessee’s right to restitution under subsection (c) of this section is subject to offset to the extent the lessor establishes:
(1) A right to recover damages under the provisions of this article other than subsection (a) of this section; and
(2) The amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.
Status: in_force · Read it on the official government site
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