City of Aberdeen v. Honey

Citations

• 8 Wash. 251
• 35 P. 1097
• 1894 Wash. LEXIS 44

Syllabus

<p>ACTION ON BOND — LIABILITY OF OBLIGORS — PENALTY —POWER OE CITY TO TAKE BOND FOR LIQUIDATED DAMAGES.</p> <p>Where a bond is given by individuals to a city, conditioned that a certain corporation will construct and complete a street railway within a given time, according to the provisions of an ordinance of the city granting said corporation á franchise for the purpose, the obligors are not liable for the failure of the corporation to comply with the terms of the franchise, as such bond on their part is without consideration.</p> <p>Where a bond is given in a penal sum, conditioned that the construction of a certain street railway will be commenced and completed according to the terms of a certain franchise granted by a city, such bond is a penal one and there can be no recovery thereon when there is no proof showing that any actual damages had accrued to the city by reason of a failure to construct the railway.</p> <p>It is not within the corporate powers of a city of the third class to take a bond conditioned that the obligors shall construct a street railway upon its streets, and in case of default shall pay a certain sum as liquidated damages.</p>