Econ 404 19:28:22 rmf34 Rye vs. Public Service Judge(s): Breitel – Chief Justice Court: Court of Appeals of New York (Location, Date): New York, July 1974 Plaintiff: City of Rye (The obligee - the party who is the recipient of the obligation) Case Summary: The city of Rye wants to get the $100,000 in surety bond that someone put up. The contract said that the housing project would be done by April 1, 1971, and for each day after, $200 a day would be rewarded to the city. The six of the buildings are more than 500 days past the deadline (hence over $100,000.) A surety bond is in place to encourage the contracting party to complete a job in a timely manner set up by the contract. The bond was penal in nature, and possibly not enforceable. Surety is basically a type of insurance. There is a 3 rd party who puts up the surety bond. There is no law that says that the city can extract a penalty or forfeiture from the developers. The $200 a day is pretty arbitrary, it isn’t based on any real number of
This is the end of the preview. Sign up
access the rest of the document.