59-13-132 - Breach of contract Payment of damages and costs Injunctions.
59-13-132. Breach of contract Payment of damages and costs Injunctions.
(a) The bylaws or the marketing contract may fix, as liquidated damages, specific sums to be paid by the members or stockholders to the association upon the breach by such members or stockholders of any provision of the marketing contract regarding the sale or delivery or withholding of products; and may further provide that such members or stockholders will pay all costs, premiums for bonds, expenses, and fees, in case any action is brought upon the contract by the association; and any such provisions shall be valid and enforceable in the courts of this state; and such clauses providing for liquidated damages shall be enforceable as such and shall not be regarded as penalties.
(b) In the event of any such breach or threatened breach of such marketing contract by a member or stockholder, the association shall be entitled to an injunction to prevent the further breach of the contract and to a decree of specific performance. Pending the adjudication of such an action and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member or stockholder.
[Acts 1984, ch. 864, § 32.]