Rabago v. Meraz

Appellants, the Rincon Valley Union School District of Sonoma County and its Board of Trustees (hereinafter referred to as the District), contracted with Frank S. Glover, doing business as Glover Construction Company (hereinafter referred to as the contractor), for the construction of the Spring Creek Elementary School. The agreement established August 29, 1958, as the completion date and contained a clause stipulating $50 liquidated damages for each day the project remained incomplete. The architect granted an extension to October 3, 1958. The work was not completed within the extended time. In fact, the certificate of completion was not filed until February 5, 1959. The District withheld as liquidated damages $6,250 ($50 a day for 125 days) and the contractor brought this action to recover this sum plus interest. Subsequently, the parties stipulated to an amendment of the complaint to substitute as the real party in interest The Aetna Casualty & Surety Company, subrogee on the contractors faithful performance bond.