Ann Arbor Asphalt Construction Co. v. City of Howell

The question presented for decision by defendant’s assignments, of error is whether the court erred in holding that $20 per day after contract time was a penalty rather than stipulated damages. Plaintiff sued on a contract for paving, claiming balance due of $2,660. Defendant city withheld the amount as damages for 138 days’ delay in completing the contract, at $20 per day. Under the contract there were six separate areas to be paved, three areas on Michigan avenue, the main street of the city, being 73 per cent, of the yardage, two blocks on Clinton street 8 per cent, of the yardage, two…