York v. York Railways Co.

Citations

• 229 Pa. 236
• 78 A. 128
• 1910 Pa. LEXIS 578

Syllabus

<p>Street railways — Bond—Municipal corporations — Liquidated damages — Penalty—Noncompletion of road — Delay—Burden of proof— Estoppel.</p> <p>1. The question whether the amount stated in a conditional bond or contract is to be taken as a penalty or a liquidation of damages ■ arising from breach of the condition, is to be determined by the intention of the parties, drawn from the words of the whole contract, examined in the light of its subject-matter and its surroundings, and in this examination it is necessary to consider the relation which the sum bears to the extent of the injury which may be caused by the several breaches provided against, the ease or difficulty of measuring a breach in damages and such other matters as are legally or necessarily inherent in the transaction.</p> <p>2. The whole sum named to stand as security generally may by express contractual stipulation be made collectible as liquidated damages for a particular designated breach provided the damages flowing from such breach would obviously be impossible or most difficult to ascertain by reference to any exact pecuniary standard of measurement.</p> <p>3. Where a street railroad company agrees, in accordance with the terms of a city ordinance, to commence the construction of a street railway by a certain date and to complete and operate same as an entirety upon all the streets named in the ordinance within a stipulated time, and furnishes a bond for $25,000, conditioned to comply with the ordinance and to indemnify the city from loss or damage arising from breach, and agreeing “that the said bond shall become forfeited to and collectible by the city as assessed and liquidated damages due and owing said city in event of failure of the company to complete and operate its line of railway within the time stated; for which bond, after the company shall have completed and begun to operate its railway line shall be substituted the bond of the company in the sum of $5,000,” the city is entitled to co