Porto Rico v. Title Guaranty & Surety Co. - 227 U.S. 382 (1913)
U.S. Supreme Court
Porto Rico v. Title Guaranty & Surety Co., 227 U.S. 382 (1913)
Porto Rico v. Title Guaranty & Surety Company
Argued January 30, 1913
Decided February 24, 1913
227 U.S. 382
In this case, held that a bond given in pursuance of an ordinance, for faithful performance of a contract, was solely for the complete result at the end of the period specified, and that it did not permit a recovery of the whole penalty upon any intermediate breach.
Breaches of subordinate requirements, which are specified in a contract for a public utility and bond for performance and are simply means to an end, cannot be made the basis of recovering the whole penalty after final completion or after cancellation by the obligee of the franchise.
If within time for completion of a public utility authorized by ordinance, the municipality itself makes performance impossible, it cannot, under any system of law in Porto Rico or elsewhere, recover upon the bond for failure to perform.
180 F. 641 affirmed.
The facts, which involve the liability of a surety company on a bond given for faithful performance of a contract, are stated in the opinion.