United States Seventh Circuit

An extra $150,000 payment that defendants were required to produce for not making timely payments under a court-ordered settlement agreement with plaintiffs is an unenforceable penalty clause, given that it is an unreasonable and excessive amount, compared to the actual damages as estimated by using interest rates.

Appellate Information

• Argued 01/24/2001
• Decided 02/20/2001
• Published 02/20/2001

Judges

• FLAUM, Chief Judge., Before FLAUM, Chief Judge, and EVANS and WILLIAMS, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellees:
  
• Robert S. Minetz (Argued), Levin, McParland, Phillips & Minetz, Chicago, IL, for Plaintiffs-Appellees., James K. Borcia (Argued), Tressler, Soderstrom, Maloney & Priess, Chicago, IL, for Defendants-Appellants.