Walter Motor Truck Co. v. State Ex Rel. Department of Transportation

FOSHEIM, Justice.

This is an appeal from a judgment in favor of the plaintiff in the sum of $63,-950.00 for payment withheld on a contract to supply crash, fire and rescue equipment to various South Dakota airports. We reverse.

The South Dakota Department of Transportation, Division of Aeronautics, acting as contracting agent for the several cities served by commercial air carriers, assessed the above amount against the plaintiff pursuant to a provision in the contract which reads as follows:

LIQUIDATED DAMAGES. In the event the Contractor fails to deliver the trucks and equipment to the…