Berg Shipbuilding Co. v. United States

The Berg Shipbuilding Company, a corporation, and Geo. Nelson, Surety for the Berg Company, are the plaintiffs. *113a contract to build The Hemlock, a steel lighthouse tender, for the Government, The tender was not completed until long after the date stipulated in the contract, as modified by change orders, and the Government, in paying the Berg Company, assessed and withheld liquidated damages, at the rate of $200 per day provided in the contract, amounting to $38,000.

The plaintiffs assert in this suit that the. withholding of $38,000 of the contract price was a breach of contract by the…