State Highway Department v. Hall Paving Co.

The question at issue here is as to whether the State Highway Department of Georgia is entitled to collect liquidated damages from Hall Paving Co., Inc. because of the latter’s failure to complete a contract within the number of days specified therein, which contract contained a provision for the contractor’s payment of "liquidated damages” in the event of such failure. The contract provides: "Liquidated damages shall start in accordance with the above schedule upon notification to the contractor in writing that all the original contract time as stated in the proposal has been consumed.” The…