Bane v. Gridley

Citations

• 67 Ill. 388

Syllabus

<p>11. Penalty—equitable relief against. Where a gross sum is to be paid because a less sum is not paid at a particular day, this is strictly a penalty, and the larger sum becomes due at once, in case of non-payment at the day. Prom such a penalty a court of chancery will relieve on slight grounds.</p> <p>2. Same—whether penalty or liquidated damages. Where a promissory note contained a clause, that “if not paid promptly at maturity,” for the payment of “thirty per cent per annum thereafter as liquidated damages for non-payment: ” Held, that this was not a penalty in a strict sense, but the increased interest was merely liquidated damages accruing from day to day, from which relief could be had at anytime by payment, and therefore involving no special hardship calling for interference by the courts.</p> <p>3. Promissory note—liquidated damages for nonpayment at maturity. Where the makers of a promissory note promise therein to pay the principal by a day named, and if not paid at maturity, thereafter to pay thirty per cent per annum as liquidated damages, the increased rate of interest may be recovered in case of default of payment when due.</p>