We have here under review a judgment for damages in favor of plaintiff in error against defendant in error, reversal being asked upon the ground that, through erroneous rulings made by the trial judge, the recovery was unduly limited. The writ of error was sued out under § 244, Jud. Code (act of March 3, 1911, chap. 231, 36 Stat. at L. 1087, 1157, Comp. Stat. 1913, §§ 968, 1221), prior to the act of January 28, 1915 (38 Stat. at L. 804, chap. 22, §§ 3 and 6)
Defendant, a corporation of the state of New York, on December 12, 1910, secured a contract with the government of the United States for the construction of a postoffice and court building at San Juan, Porto Rico. A few days later it entered into a subcontract in writing with one Guerini, by the first paragraph of which he agreed: 'To furnish and set in position, including the concrete backing, all the imitation of sandstone, and to construct the interior concrete walls, concrete floors, concrete roof, backing the granite construction, enclosing all the I beams . . . agreeable to the drawings and specifications made by the said architect (copies of which have been delivered to the subcontractor), and to the dimensions and explanations thereon, therein and herein contained, according to the true intent and meaning of said drawings and specifications,' etc.; it being agreed that the work should be done 'under the direction and to the satisfaction of the general contractors and James Knox Taylor, architect (acting as agents of the owner) or his or its representative.'
'25th. The subcontractor further agrees to furnish the material and build the concrete footing complete to the basement floor for the sum of $6.70 a cubic foot.
'Also to furnish the materials and build all the sidewalks for the sum of $1.85 a square yard.
'Also set in position all the granite walls, steps, balusters, buttresses, and curbing, and all other granite work for the sum of 40 cents a square foot surface. The three above items to be at the option of the general contractor. . . .'
Thereafter the plaintiff corporation was formed under the laws of Massachusetts, and Guerini transferred the contract to it. Defendant was notified of this, expressed satisfaction in writing under date February 20, 1911, and thereafter dealt with plaintiff as subcontractor.
At a later time, defendant exercised the third only of the options given to it by the 25th paragraph.
The plan of the building contemplated a foundation of concrete and piles, which was to be constructed by defendant complete to the basement floor; above this a basement story, surfaced with granite blocks to be furnished by defendant (as a practical matter, to be sent from the United States) and to be set in position by plaintiff under the accepted option. The blocks were to be backed with concrete, to be furnished and set by plaintiff. Above the basement story, the exterior walls were to be faced with imitation sandstone, backed with concrete, which, together with interior walls, floors, and roof of concrete, were to be constructed by plaintiff.
The contract contained the following clauses that bear upon the matters in dispute:
'6th. The subcontractor shall and will proceed with the said work and every part and detail thereof in a prompt and diligent manner, . . . and shall and will wholly finish the said work according to the said drawings and specifications and this contract in 300 days from the date upon which the building is ready to receive his work and after he has been notified to proceed by general contractors, and in default thereof, the subcontractor shall pay the general contractors the sum of $20 for every day thereafter that the said work shall remain unfinished as and for liquidated damages. The subcontractor further agrees to begin work at the building within three days from the time that he is notified by the general contractors that the building is ready to receive such work.
'7th. . . . Should the subcontractor be obstructed or delayed in the prosecution or completion of the work by neglect, delay, or default of the owner, the architect, the general contractors, or of any other contractors employed by them upon the work, or by alterations which may be required in said work, or by any damage which might happen by fire, lightning, earthquake, or cyclone, or by the abandonment of the work by the employees through no fault of the subcontractor, then the time herein fixed for the completion of the work shall be extended for a period equivalent to the time lost by reason of any or all of the causes aforesaid,' etc.