Melwood Construction Corp. v. State of New York

In Melwood Construction Corp. v. State of New York (126 Misc. 2d 156 (Ct. of Claims, 1984) the State acknowledged that liquidated damages were "intended solely as compensation for the inconvenience incurred by the public, rather than for any economic loss suffered directly by the State itself" (p. 157). In reaching its conclusion the court quoted from Brooks v. City of Wichita, 114 Fed. 297 (8th Cir., 1902), where it was noted that a liquidated damage provision "is the only method by which the city can obtain anything like an adequate compensation for the loss and damage sustained by the public by the breach of such a contract" (p. 299).