Six Companies of California v. Highway District - 311 U.S. 180 (1940)
U.S. Supreme Court
Six Companies of California v. Highway District, 311 U.S. 180 (1940)
Six Companies of California v.
Highway District No. 13 of California
Argued November 13, 14, 1940
Decided December 9, 1940
311 U.S. 180
1. An announcement of state law by an intermediate state appellate court, in the absence of a contrary ruling by the highest state court or of other convincing evidence that the state law is otherwise, should be followed by federal courts. P. 311 U. S. 188.
2. An intermediate appellate court of California had ruled that, in that State, a stipulation in a construction contract for liquidated damages in case of delay in completion was inapplicable after abandonment of the work. This, apparently, had not been disapproved, and there was no convincing evidence that the law of the State was otherwise. Held, that the ruling should have been followed by the federal courts, in a case involving the same questions, in California. P. 311 U. S. 188.
110 F.2d 620 reversed.
Certiorari, post, p. 631, to review the affirmance of a Judgment for damages awarded on a cross-complaint, against a building contractor for delay in completing
a building. Jurisdiction was based on diversity of citizenship.