Nilson v. Jonesboro
Supreme Court of Arkansas
Appeal from Craighead Circuit Court, Jonesboro District. J. ID. Riddick, Judge. Action to recover $500 alleged to be the damages stipulated by the parties for the breach of a contract by which the town of Jonesboro granted to the defendants, Nilson and others, the exclusive right to build and operate a street railway in that town.
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Appeal from Craighead Circuit Court, Jonesboro District. J. ID. Riddick, Judge. Action to recover $500 alleged to be the damages stipulated by the parties for the breach of a contract by which the town of Jonesboro granted to the defendants, Nilson and others, the exclusive right to build and operate a street railway in that town. The contract is exhibited with the complaint and is as follows: “This contract, made and entered into by and between the town of Jonesboro, party of the first part, and J. W. Perkins, J. B. Dillon and O. M. Nilson, party of the ■second part, witnesseth: That, for…
1Opinion of the CourtMansEieed, J.
The only question to be decided in this case is, whether the sum mentioned in the third clause of the contract should be treated as a penalty or as liquidated damages. Such questions are regarded as exceptionally vexatious, and the courts have not been guided to their solution by any rule applicable alike to all cases. Streeper v. Williams, 48 Pa. St. 450; Savannah, etc. Railroad Co. v. Callahan, 56 Ga. 331; Jaquith v. Hudson, 5 Mich. 123. The authorities, however, show that where the intention to liquidate the damages is not obvious, the stipulated sum will usually be given the effect of a…
2Cases cited9 opinions
- Clark v. BarnardSupreme Court of the United States · 1883
- Jaquith v. HudsonMichigan Supreme Court · 1858
- Watts v. CamorsSupreme Court of the United States · 1885
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- Glasscock v. RosengrantSupreme Court of Arkansas · 1892
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