Arrowhead v Klyap - PDF

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Shaun Martin BLAW 321 Arrowhead School District v. Klyap Facts:  The school district employed Klyap as a teacher for the 1998-99 school year;  Klyap’s contract included a liquidated damages clause for 20% of his salary;  3 months after signing his contract, Klyap informed the school district he would not be returning for the school year;  The school wanted to enforce the liquidated damages clause for 20% of Klyap’s salary;  The school found a replacement teacher for the upcoming school year;  Klyap was taken to court. Issue:  Is Klyap’s contact enforceable? Decision:  The school proved that it was "impractical and extremely difficult” to find, interview, hire and train a new teacher within a couple weeks of the school year. The court ruled in favor of the school and ordered Klyap to pay 20% of his salary, $4,100, to the school for damages sustained after Klyap’s resignation. Reasons:  The school district was quite small and Klyap’s resignation made it nearly impossible for the district to replace him, as there were only 2 qualified applicants when Klyap resigned. The school had to train the new teacher very quickly and reorganize Klyap’s sports program. Due to Klyap’s resignation, the school spent time on a new teacher instead of more valuable things and the liquidated damages are justifiable by both the school district and the court....