Appellant state challenged a judgment from the Superior Court of the City and County of San Francisco (California), which sustained a demurrer by appellee railroad company to a complaint by the state that the railroad company breached a condition to transport enumerated public passengers and goods freeThe state sought the liquidated damages stipulated in an agreement under which the state financed the construction of a railroad.
California Business Lawyer & Corporate Lawyer, Incare Orange County business attorneys
Overview
The state challenged a judgment that sustained a demurrer to a complaint against the railroad company in an action the state filed to collect liquidated damages for breach of a contractThe state financed the construction of a railroad by issuing bonds on condition that the railroad company would transport enumerated public passengers and goods free of chargeThe state argued that the loan was to be repaid either by doing for all time the things specially agreed to be done or by paying back the moneyThe demurrer by the railroad company argued that the complaint that the contract was breached at some points in the last 18 years was insufficient, ambiguous, and uncertainThe trial court sustained the demurrerThe appellate court affirmed the judgment sustaining the demurrer because where a number of things were stipulated to be done, the parties could not have meant that a large sum was payable as liquidated damages for a failure to perform one or more of themThe appellate court held that the agreement never contemplated that the railroad company would be liable if it charged a fare or freight without any notice that the man or article was of the stipulated class.
Outcome
The court affirmed the judgment sustaining the demurrer because the averments referred to by appellant state were insufficient as an assignment or assignments of breaches of conditionsThe court held that it was also beyond question that the averments were uncertain.
