The plaintiff rented a Halloween costume to Sharp for $20. The rental agreement included a liquidated damages clause which stated, “an amount equal to one-half the rental fee will be charged for each day the costume is returned late.” Sharp returned the costume seventy-nine days late and the plaintiff sued in small claims court.
At a hearing before a referee, the plaintiff testified that he had lost one rental during the seventy-nine days. The referee awarded the plaintiff $500, noting that the plaintiff’s complaint sought only that amount. Sharp filed objections to the referee’s report, and the matter was brought to the trial court. It entered judgment against Sharp for $400. The case was appealed to the state intermediate appellate court. Should the appellate court affirm the trial court?