v.
W. S. Furnas
The case as stated by tbe plaintiffs is substantially as follows: On and prior to April 25, 1903, tbe defendant was tbe owner and proprietor of several business enterprises at tbe town of Lisbon, in Linn county, Iowa, in which considerable capital and labor were employed, and tbe plaintiffs were citizens of the town of Mt. -Vernon, in tbe same county, where they owned property and were engaged in business. Tbe defendant professing a desire to remove bis several business enterprises from Lisbon to Mt. Vernon, and tbe plaintiffs believing that tbe establishment of tbe same in their town would increase its [*506] business and trade and add to tbe value of its property, a written contract was entered into whereby defendant agreed to fully and completely move from Lisbon and to establish, conduct, and continue in Mt. Vernon for a period of not less than five years the business enterprises ef the W. S. Furnas Company, the American Manufacturing Company, the Lisbon Mutual Insurance Association, and the Equity Mutual Insurance Association, and that such removal should be consummated within one year from the date of the contract. He also agreed within the year to erect and complete in Mt. Vernon upon' such site and location as he might select and purchase, a suitable building or buildings in which to carry on the business owned by him. In consideration of these agreements the plaintiffs jointly agreed to pay to the defendant the sum of two thousand dollars, one-half when the work of the removal by the defendant was approximately half completed, and the remainder upon the completion of the building in Mt. Vernon. Of the other stipulations of said contract we need here set out only the following: “For the purpose of securing the faithful performance of this contract, and as a measure of liquidated damages for a failure to perform the conditions of this agreement, each of the parties hereto agree to pay the other the sum of two thousand (2,000) dollars for his breach of each, any or all of the conditions herein and said sum. shall become a lien upon the property of the parties to this contract and so remain until paid.”
In their original petition after setting out the foregoing facts plaintiffs proceed to allege “ that they have at all times been able, ready, and willing to pay the defendant the said sum- of two thousand dollars according to the terms of the agreement, but defendant has refused and still refuses to carry out or perform the terms of his said written agreement or any part thereof,” and on the showing thus made they demand a recovery of damages in the liquidated sum of two thousand dollars. The defendant demurred to the [*507] petition on several grounds which may be condensed into the single proposition that the contract provides for a penalty only and not for liquidated damages, and the petition wholly fails to state or allege any injury or damage to the plaintiffs by reason of the defendant’s failure to perform. This demurrer was sustained and thereupon plaintiffs amended' their petition and alleged: (.1) That relying upon said written agreement they spent two weeks’ time in canvassing the town of Mt. Vernon to raise the sum agreed to be paid to the defendant and that their services in this behalf were worth $200; (2) that they employed an attorney to prepare the said written contract and to advise them in the matter and that such services were reasonably worth $50; (3) that relying upon the carrying out of said contract by defendant and the consequent enhancement-in the value of their property and business and of the property and business of the town generally, they secured options on land which they deemed suitable for the location of the buildings to be occupied by the defendant, paying for said options the sum of twenty-five dollars and because of the defendant’s failure to perform his agreement, said options became valueless; (4) that at defendant’s request they spent time in looking up and selecting locations suitable for defendant to purchase as a site for his said buildings; (5) that it was orally and mutually agreed and understood at the time of entering into the contract that in the event of a failure hy either party to carry out the agreement the damages would be uncertain and incapable of definite ascertainment or measurement and in view of such fact it was further agreed and understood that the sum of $2,000 mentioned in the clause of the writing above quoted should be considered and treated as liquidated damages and not as a mere penalty; and (6) that relying upon said mutual understanding plaintiffs entered into the contract and performed labor and incurred expense as aforesaid to their actual damage in the sum of $2,000. On the filing of this amendment [*508] defendant moved to strike therefrom each of the several paragraphs above referred to as being statements of irrelevant and immaterial matters not within the contemplation of the contract, that the damages sought by plaintiffs are speculative and remote and that the pleading as amended in no manner avoids the objections or grounds upon which the demurrer to the original petition was sustained. The motion to strike having been sustained and plaintiffs refusing to further plead, the action was dismissed and plaintiffs appeal.
[*509]
There is no prejudicial error in this record, and the judgment of the district court is affirmed.