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Contracts Keyed to Dawson
Rye, City of v. Public Services Mut. Ins. Co.
Facts
The developers had already finished six luxury co-operative apartment buildings, and were to construct six more. However, the City would not issue certificates of occupancy for the completed buildings without a bond from the developers for timely completion of the new buildings. The developers agreed to pay $200 per day for each day after 4/1/71 that the buildings were not completed, and, in fact were over 500 days late finishing the projects. The City sought to recover its entire $100,000 bond. The Special Term denied the City’s motion for summary judgment, and the Appellate Division affirmed
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