A recent decision by the Georgia Court of Appeals in the matter of Monitronics v. Veasley upheld a multi-million dollar jury award to an alarm company customer who suffered an in-home assault. The alarm company argued that their contract included a $250 limitation of liability for any service related losses. The Appeals Court, in a plurality opinion, agreed that the exculpatory language was otherwise “valid and binding”, but that it was simply in too small a print to be enforceable. In the Court’s language the liability clause was not sufficiently prominent, but was instead “written in the same small, single-spaced typeface as the majority of the contract.”
This interesting ruling will no doubt make companies think twice about the physical size of important contract clauses.