What is the test for calculating liquidated damages for failure to deliver train carriages?

MultiRegion, United States of America

The following excerpt is from Associated Press v. Emmett, 45 F. Supp. 907 (S.D. Cal. 1942):

"The amount is not so extraordinarily disproportionate to the damage which might result from the failure to deliver the carriages as to show that the parties must have intended a penalty, and could not have meant liquidated damages." United States v. Bethlehem Steel Co., 1907, 205 U.S. 105, 121, 27 S.Ct. 450, 456, 51 L.Ed. 731.

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