Wallis v. Inhabitants of Wenham

90 N.E. 396, 204 Mass. 83, 1910 Mass. LEXIS 871
Massachusetts Supreme Judicial Court·Decided January 6, 1910·Published·Cited by 17 cases

Opinion

Sheldoh, J.

The plaintiffs contend that the acts of the defendant in causing delay in the execution by the plaintiffs of their contract resulted as matter of law in abrogating the time limit fixed by the agreement of the parties, and left the plaintiffs under no further obligation as to this matter than the duty of completing the construction of the building within a reasonable time. They also contend that for any failure on their part to complete their work within a reasonable time they could be " held only for the actual damages shown to have been caused thereby to the defendant, and not for the liquidated damages [87] fixed by the original agreement. There are some decisions, and some dicta in other decisions, which sustain their contention. Dodd v. Churton, [1897] 1 Q. B. 562. Holme v. Guppy, 3 M. & W. 387. Willis v. Webster, 1 App. Div. (N. Y.) 301. Graveson v. Tobey, 75 Ill. 540. And we understand it to be universally agreed that under such an agreement as this the owner cannot hold the contractors liable in the amount of the stipulated damages for any delays which have been due to his own fault. Russell v. Bandeira, 13 C. B. (N. S.) 149. Kenny v. Monahan, 169 N. Y. 591, affirming S. C. 53 App. Div. (N. Y.) 421. Home Bank v. Drumgoole, 109 N. Y. 63. Marsh v. Kauff, 74 Ill. 189. Palmer v. Stockwell, 9 Gray, 237. Amoskeag Manuf. Co. v. United States, 17 Wall. 592. But in many of the decisions in which contractors have been completely exempted from such liquidated damages for a failure to finish the whole work within the stipulated time it has been either assumed or found as a fact that the whole of the delay was due to the fault of the owner or of persons for whose conduct the owner was responsible. Ludlum v. Vail, 166 N. Y. 611, affirming Smith v. Vail, 53 App. Div. (N. Y.) 628. Perry v. Levenson, 82 App. Div. (N. Y.) 94. Boden v. Maher, 105 Wis. 539. Weber v. Collins, 139 Mo. 501. White v. Fresno National Bank, 98 Gal. 166. Erickson v. United States, 107 Fed. Rep. 204. Altoona Electrical Co. v. Kittanning & Ford City Street Railway, 126 Fed. Rep. 559. District of Columbia v. Camden Iron Works, 15 App. Cas. (D. C.) 198. Dunavant v. Caldwell & Northern Railroad, 122 N. C. 999. So in Cornell v. Standard Oil Co. 91 App. Div. (N. Y.) 345, the contractor finished the work as soon as the owner allowed him to do it. This was the principle applied in Champlain Construction Co. v. O’Brien, 117 Fed. Rep. 271, in which the owner was found to be principally at fault for the delay which had occurred, but it was impossible to apportion the responsibility between him and the contractor. In other cases it appeared that the owner had not performed certain obligations on his part which, upon the proper construction of the contract, were found to be conditions precedent to the obligation of the contractor to finish his work by the stipulated time or pay the liquidated damages for his delay. The most frequent example of such a construction occurs when the contractor’s agreement [88] to have his work completed at a stipulated period and in default thereof to pay liquidated damages at a fixed rate is accompanied by an engagement of the other party that full opportunity to begin and prosecute the work shall be given to the contractor on or before some previous fixed day. Until the condition precedent has been performed the liability of the contractor under the agreement as to the time of completion does not accrue. Gilbert & Barker Manuf. Co. v. Butler, 146 Mass. 82, 84, 85. Dannat v. Fuller, 120 N. Y. 544. Weeks v. Little, 89 N. Y. 566. Granberg v. Gardner, 51 App. Div. (N. Y.) 610. Deeves v. New York, 60 N. Y. Super. Ct. 339. Long v. Pierce County, 22 Wash. 330. Standard Gaslight Co. v. Wood, 61 Fed. Rep. 74. In other cases the delay for which the owner was responsible had so altered the circumstances, — for example by postponing the construction to a more unfavorable season of the year,—as to make it manifest upon a fair construction of the agreement that the parties could not have intended that the stipulations as to time should still remain in force. King Iron Bridge & Manuf. Co. v. St. Louis, 43 Fed. Rep. 768. Lauer v. Brown, 30 Barb. 416, 420. Haughrey v. Thiberge, 24 La. Ann. 442. Gutmann v. Crouch, 134 N. Y. 585. See Drumheller v. American Surety Co. 30 Wash. 530.

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Wallis v. Inhabitants of Wenham, 90 N.E. 396, 204 Mass. 83, 1910 Mass. LEXIS 871 (Mass. 1910).

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