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MECHANICAL AIR ENGINEER. v. TOTEM CONST.

No. 1 CA-CIV 9924.

166 Ariz. 191 (1989)

801 P.2d 426

MECHANICAL AIR ENGINEERING COMPANY, an Arizona corporation, Plaintiff-Appellee, v. TOTEM CONSTRUCTION COMPANY, an Arizona corporation, Defendant-Appellant.

Court of Appeals of Arizona, Division 1, Department D.

May 9, 1989.

Attorney(s) appearing for the Case

Warner, Alvarez, McCarthy & Palmer by Donald R. Alvarez, Phoenix, for plaintiff-appellee.

Sternberg, Sternberg & Rubin by Ronald I. Rubin, Phoenix, for defendant-appellant.

OPINION

GRANT, Chief Judge.

This appeal raises a question of first impression: whether a liquidated damage provision in a contract is enforceable only upon a showing of actual damages. The appeal is taken from a partial summary judgment on the liquidated damage issue, an arbitration award and an award of attorney's fees.

FACTS

Totem Construction Company (Totem) was the general contractor on some remodeling and construction at Glendale Community...

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