Limited Liability Clauses in Contracts
Those familiar with the online gaming industry might have heard about a live-streaming platform for gamers called “Twitch”. If you are particularly good at playing a certain video game (or maybe you have great commentary), you may stream videos of you playing a video game on Twitch for others to watch you play online. But right now, Twitch is getting more attention in the news for its legal battle with one of its more popular gamers: James “Phantomlord” Varga. You can read about the whole legal battle between them here. Even though this is a case of significant importance with a number of legal issues, the focus of this post clause capping Twitch’s damages in its form contracts. To sum up, Varga sued Twitch for a number of claims, and the damages he suffered potentially amount to millions of dollars. The damages cap in Twitch’s standard form contract with its players, however, caps damages at $50,000. The San Francisco County Superior Court judge ruled that Twitch’s limited liab