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NAME: __________________________________


MEMORANDUM

To: Law Clerk
From: Supervising Attorney
Date: October 16, 2012
Re: John Campbell; Validity of Liquidated Damage Clause and Spite Fence


As you know, my uncle, John Campbell, is interested in pursuing a claim against his neighbor, Farmer Ford. Uncle John would like to collect the liquidated damages specified in the August 20, 2012, contract between the two men. We have some additional research that must be completed and uploaded to TWEN no later than 6:00 p.m. on Wednesday, October 31, 2012.

As I explained in my assigning memo to you, I would like you to focus your research on the validity of the contract’s liquidated damages clause. Remember to apply Iowa law, because the parties agreed that Iowa law would govern the contract.

While conducting your research, you should keep track of the research you uncover. You should, at least, keep a list of the major authorities (cases, secondary sources, etc.) you find, along with a short description to remind you of their importance. You likely will want to revisit this information down the road (when preparing to write your memo), and you do not want to have to re-create all this work.
Finally, you must conduct this research and identify the cases by yourself. You may work with your classmates (within your LP I section) to discuss possible issues presented by the hypo and to generally discuss law you have found in cases. However, you must decide on your own which specific cases to list as responses to the questions above, and you must independently draft the legal summaries and rationales regarding the purpose of the law.
Specifically, I would like you to provide me with the following information:

A. Please identify, using accurate Bluebook citation, two secondary sources that provide legal guidance as to when a liquidated damages clause in a contract is enforceable.

1.

2.

B. Please identify, using accurate Bluebook citation, two cases that provide guidance on how to determine whether an amount stated in a liquidated damage clause is uncertain or difficult to ascertain.

1.

2.


 For both of the cases you identified above, summarize how the case explains how to determine whether an amount stated in a liquidated damage clause is uncertain or difficult to ascertain. Make note of why you may use the case. Also make sure to note key categories of information from the case, such as the issue, the legally significant facts, and the court’s holding and reasoning.

1.


2.


 Then, for each case, please identify how you believe the case may help you logically analyze whether the damages specified in Farmer John’s contract with Farmer Ford were or were not uncertain or difficult to ascertain. For example, are there specific facts from the case law that can you analogize or contrast with the facts from Farmer John’s case on this issue? Does a court reason in a way that could apply (or not apply)? Are there policy considerations mentioned in the case that would help your reader understand how the rule applies (or doesn’t apply) in this case?

1.



2.




C. Next, please identify, using accurate Bluebook citation, two cases that provide guidance on how to determine whether the amount stated in a liquidated damage clause is reasonable.

1.

2.

 For both of the cases you identified above, summarize how the case explains how to determine whether an amount stated in a liquidated damage clause is reasonable. Make note of why you may use the case. Also make sure to note key categories of information from the case, such as the issue, the legally significant facts, and the court’s holding and reasoning.

1.


2.





 Then, for each case, please identify how you believe the case may help you logically analyze whether the damages specified in Farmer John’s contract with Farmer Ford are reasonable or unreasonable. For example, are there specific facts from the case law that can you analogize or contrast with the facts from Farmer John’s case on this issue? Does the court’s reason in a way that could apply (or not apply)? Are there policy considerations mentioned in the case that would help your reader understand how the rule applies (or doesn’t apply) in this case?

1.



2.





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