Critical Legal Thinking Case 8.7 Liquidated Damages United Mechanical Contractors, Inc. (UMC), an employer, agreed to provide a pension plan for its unionized workers. UMC was to make monthly payments into a pension fund administered by the Idaho Plumbers and Pipefitters Health and Welfare Fund (Fund). Payments were due by the 15th of each month. The contract between UMC and the Fund contained a liquidated damages clause that provided if payments due from UMC were received later than the 20th of the month, liquidated damages of 20 percent of the required contribution would be assessed against UMC. In one month, the fund received UMC's payment on the 24th. The Fund sued UMC to recover $9,245.23 in liquidated damages. Is the liquidated damages clause enforceable? Idaho Plumbers & Pipefitters Health & Welfare Fund v. United Mech. Contractors, Inc. , 875 F.2d 212 (9th Cir. 1989).