American Surety Co. of New York v. Gonzales Water Power Co.

211 S.W. 251, 1919 Tex. App. LEXIS 486
CourtCourt of Appeals of Texas
DecidedApril 2, 1919
DocketNo. 6179.
StatusPublished
Cited by11 cases

This text of 211 S.W. 251 (American Surety Co. of New York v. Gonzales Water Power Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Surety Co. of New York v. Gonzales Water Power Co., 211 S.W. 251, 1919 Tex. App. LEXIS 486 (Tex. Ct. App. 1919).

Opinion

MOURSUND, J.

The Gonzales Water Power Company, a corporation, on December 16, 1916, sued H. C. Gass to recover damages for delay in constructing, and for failure to complete, in accordance with a written contract between plaintiff and Gass and plans and specifications made part thereof, a reinforced concrete dam across the Guadalupe river at Gonzales, Tex., on the site of the old dam belonging to the plaintiff, which had been partly washed away. The contract was signed on August 26, 1914, and on the same day the American Surety Company of New York, as surety, and said Gass, as principal, executed a bond for $5,000, payable to plaintiff, the plans and specifications above referred to being made a part of such bond, for the erection, construction, and completion of a dam in accordance with the contract and specifications. The plaintiff also sued on such bond, and the 'Surety Company adopted the pleadings of the defendant Gass. The trial resulted in a judgment for plaintiff against Gass for $36,242.28, and against the Surety Company for $5,000 with interest thereon from November 18, 1915, and in favor of the Surety Company against Gass for such sum as it might be compelled to pay on the judgment against Gass. Only the Surety Company appealed. The findings of fact are lengthy, and cover issues not relied on upon this appeal. We will therefore, for the sake of brevity, copy, or state briefly, those deemed appropriate to an opinion on the issues presented in the assignments. The court found:

“The written contract of August 26, 1914, obligated the defendant to build and complete a reinforced concrete dam, for the plaintiff, across the Guadalupe river, at Gonzales, Tex., on the site of the old dam belonging to the plaintiff, and which dam at its western end *252 was to be joined to a bulkhead of the old- dam already in existence and belonging to plaintiff, which ^old bulkhead was to be slightly raised on account of the greater height of the new dam, and to be completed in four months from the date of the contract, with the proviso that such additional time might be added to said four months as might be equal, in the opinion of the engineer, to the time lost by excessive floods or other conditions not within the control of the defendant, and that time, when mentioned in the agreement, was to be of the essence of the contract.
“The contract also provides that the defendant should so prosecute the work that no damage might accrue to any of the completed work of the plaintiff by or through reason of the defendant's operations, and that the defendant should exercise reasonable engineering ability in keeping with the character of the work to properly take care of the flow of the river, and to avoid damage to the adjacent property, or to the rights of those having rights in the premises.
“So far as it is here necessary to notice the specifications, they provide, among other things, that they cover the material, construction, labor, machinery, apparatus, and appurtenances necessary to erect, construct, and complete the construction of a reinforced concrete dam across the Guadalupe river at Gonzales, Tex., on the site of the old dam owned by the Gonzales Water Power Company at their plant in said city, arid the plans and specifications are intended to cover everything necessary to build the dam in a thorough and workmanlike manner, including cofferdam, pumping and excavating machinery of whatsoever nature required by the conditions, and protecting the property during construction ; that any omissions in either the plans or specifications covering any of the work essential to the purpose and intent of the plans and specifications should be considered as much thereof as if specifically set forth therein; that there should be no claims allowed for extra cost under the conditions of the specifications, whether on account of the difliculties of high water, accidents, or delay, except that for any time lost on account of floods or delay in the arrival of material, not within the defendant’s control, there should be additional time added to the period allowed for completion, and provided that, when any direction for extra work should be made to the contractor in writing, then such work should be executed by the contractor, and price and time for such work should be fixed and agreed upon between the plaintiff and the defendant before the execution, except where unit prices governed possible extra work, and the Surety Company or persons acting on its bond should take notice that any such extra work shall not relieve or limit their liability in the premises; that the bill of material furnished to each bidder with the specifications should not be taken as an estimate of quantities of various material and appliances necessary for the construction and completion of the work comprehended in the specifications, but is furnished merely as convenient data for construction, without entailing upon the plaintiff or engineer any responsibility therefor; that the contractor should be responsible for all the quantities of material and the amount of labor necessary to construct and complete the dam, leaving the same in perfect condition acceptable to the engineer.
“Under the heading ‘Description of Suggested Methods,’ it is provided that the piles should be driven until an 1,800-pound' hammer falling 8 feet drives a pile less than one-half inch, and that driving should begin on west side of the river. Under the heading ‘Time of Completion,’ the specifications provide that the work of construction should begin within 10 days after the signing of the contract, should be diligently prosecuted, 'constructed, completed, and accepted within 4 months after date of contract; that materials required should be accumulated in advance of operation in sufficient quantities and of qualities approved by the engineer to insure the prosecution of the work without break of continuous construction; that the defendant should also provide men and means to accomplish said continuous construction to the satisfaction and approval of the engineer;. that in case of any interruption breaking the continuity of the work of construction, or delaying the completion of the same, the plaintiff should have, at its option, the authority, after 7 days’ notice in writing to the defendant by the engineer, to enter the premises take possession and charge of all material, machinery, apparatus, and whatever property 'and appliances owned, rented, used, or controlled by the defendant, and to use said material, machinery, property, and appliances to prosecute the work to its completion and acceptance by the engineer, and to pay all just claims and the cost of construction, and charge the same to the account of the defendant, and pay the remaining part of the contract price to the defendant after such charges are made to the balance due him under the contract. If the cost of construction should exceed the contract price, the balance of such cost should be paid to the plaintiff by the defendant. Other parts of the contract and specifications it is unnecessary to note here, there being no issue raised in regard to their interpretation or application. Indeed, there are really but two controverted points as to the interpretation or application of the contract, and these points will be stated and the facts in regard thereto be found further on in these findings. * * *

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Bluebook (online)
211 S.W. 251, 1919 Tex. App. LEXIS 486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-surety-co-of-new-york-v-gonzales-water-power-co-texapp-1919.