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[QUOTE="syr02esq, post: 422661, member: 497"]
I may not follow your posts to one another but I think you both have it right that this will boil down to whether the liquidated damages provision will be enforced.  I honestly don't know all the facts including which "contract" we are talking about here (or are we talking about the bylaws)?  I think when answering the question, you have to think whether (i) the amount of damages roughly approximates the damages, and (ii) the damages must be sufficiently uncertain at the time of contract formation.  I don't think (ii) is in question here, but really (i).  Even still, a "rough approximation" seems to be a very low standard to prove.
 
The (i) amount of damages will be considered punitive in nature only if the sum is disproportionate to the amount of harm. Here is where the battle will be had.  I haven't been keeping up with the economics of ACC membership but my uninformed opinion is that a $50MM exit fee is not disproporationate to the amount of harm other ACC members will incur if Maryland leaves.  Looks to me to be reasonable in amount.
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