Quimbee logo
DMCA.com Protection Status
From our private database of 17,600+ case briefs...

City of Rye v. Public Serv. Mut. Ins. Co.

Court of Appeals of New York
315 N.E.2d 458 (1974)


The City of Rye (Rye) (plaintiff) hired Public Service Mutual Insurance Company (Public Service) (defendant), developers, to construct six luxury apartment buildings. The contract between Rye and Public Service required Public Service to post a $100,000 bond and to pay $200 per day for each day after April 1, 1971 that the six buildings were not completed. Rye had no statutory authority for imposing this bond on Public Service. Due to changes in the market, Public Service was unable to obtain the necessary financing to complete the buildings on time. After the buildings were 500 days late, Rye brought suit in New York state court against Public Service seeking the full value of the bond. The trial court denied Rye’s motion for summary judgment, and the appellate court affirmed. The appellate court concluded that the bond was penal in nature and thus was unenforceable. Rye appealed.

Rule of Law


Holding and Reasoning (Breitel, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 457,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 457,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 17,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial