Hughes Bros. & Bangs v. United States
United States Court of Claims
The Reporters’ statement of the case: In this case the defendants filed an answer presenting the question whether certain retained percentages which had been declared forfeited by the defendants should be regarded as liquidated damages or as penalty. The claimants demurred to this answer, and the case came to a hearing on the issue of law so framed. The facts set up by the defendants’ answer will be found set forth in the opinion of the court.
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The Reporters’ statement of the case: In this case the defendants filed an answer presenting the question whether certain retained percentages which had been declared forfeited by the defendants should be regarded as liquidated damages or as penalty. The claimants demurred to this answer, and the case came to a hearing on the issue of law so framed. The facts set up by the defendants’ answer will be found set forth in the opinion of the court. Why should the court construe the provisions of the contract, naming specific amounts as forfeited in case of failure, as a penalty when the bond is in…
1Opinion of the Court
Peelle, Ch. J.,
delivered the opinion of the court:
The question here presented arises on the claimants’ demurrer to the fourth and fifth paragraphs of the defendants’ answer as to whether the amount retained by the Government, and the amount due for work performed is liquidated damages or penalty.
The claimants, by a written contract entered into July 31, 1899, with the Government through the Corps of Engineers, U. S. Army, obligated themselves to “ dredge Bay Ridge *520Channel and Red Hook Channel, New York Harbor, to a depth of forty (40) feet at mean low water, with width of twelve hundred…
2Cases cited6 opinions
- Sun Printing and Publishing Assn. v. MooreSupreme Court of the United States · 1902
- United States v. Bethlehem Steel Co.Supreme Court of the United States · 1907
- Philadelphia, Wilmington & Baltimore Railroad v. HowardSupreme Court of the United States · 1852
- Hinckley v. Pittsburgh Bessemer Steel Co.Supreme Court of the United States · 1887
- Phoenix Iron Co. v. United StatesUnited States Court of Claims · 1904
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