Grenier v. Compratt Constr. Co.

454 A.2d 1289 (1983)

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Nature of the Case

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Facts

Grenier (P) entered into a settlement agreement with Compratt (D) which entitled P to $25,500 upon the completion of certain subdivision roads by June 30, 1978. Completion was conditioned upon P receiving a letter signed by the City Engineer certifying that a certificate of occupancy can be obtained on any lot in the subdivision as of 5 p.m. on June 30, 1978. The roads were finished, but P was unable to provide the stipulated letter because the City Engineer did not ordinarily write such letters. The assistant city attorney authorized the building inspector to issue certificates of occupancy for the roads in question on July 10, 1978. The contract between P-D called for liquidated damages for failure to meet the June 30th date. The trial court found that the inspector's letter satisfied the contract and that D had been damaged by the 10-day delay. The trial court struck D's damages clause as a penalty because by September 7th damages under that clause amounted to $26,571.42. Accordingly, the court awarded P judgment for $25,500 minus $2,500. D appealed.