Atkinson v. Pacific Fire Extinguisher Co.

This is an appeal from a judgment on a verdict for $97,437 in favor of the plaintiffs in an action for breach of contract. The questions presented are the effect of a prior default by the plaintiffs and the validity of a clause in a written contract fixing liquidated damages for breach of the contract.

On June 5, 1939, plaintiffs entered into a written “lease” agreement with the defendant company whereby the defendant agreed to install, maintain and operate a fire detection system in the plaintiffs’ planing mill located in Oakland. The *194system was designed to detect fires originating on the…