Purcell brought a lawsuit seeking to recover $85,000 he had lent to Schweitzer.  The parties settled, agreeing that Schweitzer would pay the sum of $38,000, along with interest at the rate of 8.5 percent, in installments over 24 months to Purcell.  The agreement provided that if Schweitzer failed to pay on time, it would be a breach of the entire agreement and the original liability of $85,000 would be due.  The agreement also contained the following language:

The liquidated damages provision does not constitute an unlawful "penalty" or "forfeiture."