On April 24, 2025, the California Supreme Court held that contract clauses that limit damages for injuries caused by willful tortious conduct are prohibited by Section 1668 of the California Civil Code.

In New England Country Foods, LLC v. VanLaw Food Products, Inc., No. S282968, 2025 Cal. LEXIS 2299 (Cal. Apr. 24, 2025), a barbecue sauce company sued a manufacturer for allegedly secretly attempting to replicate its popular barbecue sauce and sell it to Trader Joe’s. The barbecue sauce company, New England Country Foods (NECF), asserted both contract and tort claims against VanLaw, but VanLaw responded that the claims were barred by a contractual clause between the two parties that purported to limit damages for willful injuries caused by either party.Continue Reading California Supreme Court Finds Parties Cannot Contract Away Liability for Willful Injury