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DAVE GUSTAFSON & CO. v. STATE

No. 10409.

156 N.W.2d 185 (1968)

DAVE GUSTAFSON & CO., Inc., Plaintiff and Appellant, v. STATE of South Dakota and South Dakota State Highway Commission, Defendants and Respondents.

Supreme Court of South Dakota.

February 13, 1968.

Attorney(s) appearing for the Case

Mead Bailey, of Christopherson, Bailin, Wilds & Bailey, Sioux Falls, for plaintiff and appellant.

Kenneth J. Morgan, Highway Asst. Atty. Gen., Carl W. Quist, Sp. Asst. Atty. Gen., Pierre, for defendants and respondents.

HANSON, Presiding Judge.

In this action by a contractor against the State of South Dakota and its Highway Commission the single question is whether a provision in a state highway construction contract is one for liquidated damages, as the trial court found, or is a penalty.

On October 5, 1963 plaintiff, Dave Gustafson & Company, entered into a contract with the State Highway Commission for the construction of the subbase, base and bituminous surfacing...

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