Space Master Int'l, Inc. v. Worcester
940 F.2d 16 (1st Cir. 1991)
Nature of the Case
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Facts
D hired P to construct modular classrooms to alleviate overcrowding in the City's public schools. D agreed to pay P $1,514,559 to install within 120 days twenty-three modular classroom buildings at nine school sites. If performance exceeded 120 days, the City reserved the right to assess P liquidated damages of $250 per day plus $100 per day per site. P completed its work over 200 days late; the city retained $254,400 in liquidated damages. P sued on the grounds that the liquidated damages provision was unenforceable as it was not reasonably related to any anticipated or actual loss and that the liquidated damages withheld were disproportionate to the damages incurred. Both parties motioned for summary judgment. The court granted P's motion, and this appeal resulted.
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