GRENIER V. COMPRATT CONSTR. CO. 454 A.2d 1289 (1983) CASE BRIEF

GRENIER V. COMPRATT CONSTR. CO.

454 A.2d 1289 (1983)

NATURE OF THE CASE: This was a dispute over a contract condition of payment. Compratt (D), contractor, appealed a decision, which rendered judgment for Grenier (P), subcontractor, on P's action to recover damages for an alleged breach of contract, and that denied D's counterclaim to enforce a liquidated damages clause of the contract.

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.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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