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Space Master International, Inc. v. Worcester

United States Court of Appeals for the First Circuit

940 F.2d 16 (1991)

Facts

The City of Worcester (defendant) entered into a contract with Space Master International, Inc. (plaintiff) for the construction of modular classrooms for Worcester’s public schools. Under the contract, Worcester agreed to pay Space Master approximately $1.5 million in exchange for Space Master constructing the classrooms within 120 days. If Space Master was late in finishing the construction, Worcester had the right to assess liquidated damages of $250 per day plus $100 per day per site where the construction was incomplete. Space Master was over 200 days late in completing the construction, and Worcester withheld approximately $250,000 as liquidated damages. Space Master sued Worcester, claiming that the liquidated-damages provision was unenforceable. The trial court granted summary judgment to Space Master, and Worcester appealed.

Rule of Law

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Issue

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Holding and Reasoning (Bownes, J.)

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