Priebe & Sons, Inc. v. United States (332 U.S. 407)
U.S. Supreme Court · decided November 17, 1947 · Supreme Court Database (Spaeth)
- Citation
- 332 U.S. 407 · 68 S. Ct. 123
- Docket
- No. 16
- Argued
- October 13, 1947
- Decided
- November 17, 1947
- Term
- October Term 1947
- Vote
- 5–4
- Majority author
- Justice Douglas
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
How the Justices voted
- Majority
- Justice Burton, Justice R. H. Jackson, Justice Douglas (wrote), Justice Reed, Justice Rutledge
- Dissenting
- Chief Justice Vinson, Justice Frankfurter (wrote), Justice Black (wrote), Justice Murphy
Opinion excerpt
Mr. Justice Douglas delivered the opinion of the Court. This case, here on certiorari to the Court of Claims, presents the question whether a provision in a government contract for “liquidated damages,” as construed and applied, should be denied enforcement on the ground that it constitutes a “penalty.” Shortly after the enactment of the Lend-Lease Act of March 11, 1941, 55 Stat. 31, 22 U. S. C. (Supp. V, 1946), § 411 et seq., the United States acting through agencies of the Department of Agriculture embarked on a program of purchasing dried eggs for shipment to England and Russia. Petitioner agreed to furnish a quantity of dried eggs under that program to the Federal Surplus Commodities Corporation (FSCC). The contract called for “May 18 [1942] delivery” which date, according to the contract, “shall be the first day of a 10-day period within which the FSCC will accept delivery, the particular day within the period being at the FSCC’s option.” Petitioner was also required to have the eggs inspected, delivery to be accompanied by inspection and weight certificates. The contract contained two provisions respecting “liquidated damages.” One, contained in paragraph 9, was applicable to delays in delivery. It has no application here, for as we shall see, deliveries were timely. The provision for “liquidated damages” with which we are concerned is contained in paragraph 7 and is…
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