Astoria Southern Ry. Co. v. Pacific Surety Co.

137 P. 857, 68 Or. 569, 1914 Ore. LEXIS 303
CourtOregon Supreme Court
DecidedJanuary 13, 1914
StatusPublished
Cited by6 cases

This text of 137 P. 857 (Astoria Southern Ry. Co. v. Pacific Surety Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Astoria Southern Ry. Co. v. Pacific Surety Co., 137 P. 857, 68 Or. 569, 1914 Ore. LEXIS 303 (Or. 1914).

Opinion

Mr. Justice Ramsey

delivered tbe opinion of tbe court.

On tbe 7th day of July, 1910, tbe plaintiff entered into a contract with tbe defendants S. A. Cobb for tbe construction of eight miles of railroad in Clatsop County. By this contract tbe defendant Cobb agreed to commence tbe work of building in 15 days from tbe date of tbe execution of said contract, and to prosecute tbe same with such force and means as would, in tbe opinion of tbe chief or assistant engineers of tbe plaintiff, insure tbe completion of tbe eight miles of road by or before tbe 1st day of November, 1910; said work to be at all times open to tbe inspection of tbe chief or assistant engineers of tbe plaintiff, and to conform to tbe rules and general specifications annexed to said contract. Tbe defendant Cobb agreed not to assign or transfer said contract, or relet any of said work, [571]*571without the written assent of the plaintiff or its chief engineer, and that he should constantly superintend said work in person. The defendant Cobh agreed to progress with said work at such time or times and at such particular points, on the line of said work, as said chief or assistant engineers should direct. It was mutually agreed by said parties to said contract that if the defendant Cobb, in the .opinion of the plaintiff or its chief engineer, should fail or refuse to comply with any of the stipulations contained in said contract to be performed by him, the plaintiff should have a right to cancel said contract and declare the same void, in which event said Cobb should have no claim whatever on the plaintiff for damages, compensation or percentage retained by the plaintiff, as hereinafter stated, either for material or work, but the plaintiff should have a right to take possession of and hold said material and work absolutely, and should be absolved as entirely and completely from said contract as if the same had never been made. Said contract further provided that, if the defendant Cobb should at any time neglect or refuse to progress with said work as fast as, in the opinion of said chief engineer of the plaintiff (communicated in writing to said defendant Cobb), it should be necessary for the completion by the time specified therefor by said contract, then the plaintiff might declare said contract abandoned, and the amount which was to be retained at the time out of the monthly estimates, which was to become due at the completion of the contract, should be forfeited to the plaintiff, or the plaintiff should have the right, at its option, to employ other parties to execute any part of said work, and charge the costs of the same to the defendant Cobb, to be deducted out of such retained percentage, or out of any payment that should have become due on any former estimate, or that should become due on any subsequent estimate. Said [572]*572contract further provided that whenever, in the opinion of the plaintiff, it should he necessary to stop any of the work, or to diminish the force employed, the plaintiff should have the right to do so, and the defendant Cobb should have no claim for damages, but should immediately stop the work or diminish the force, as the plaintiff, should direct. Said contract provided, also, that the location of any portions of said road, as also the slopes of excavation and embankments, the lengths of sections, the grades, or the width of the roadbeds, might be altered whenever said chief engineer should consider such alteration necessary or expedient, but such alteration should not be allowed as a reason for any claim for extra compensation, and it was expressly agreed by the parties to said contract that the price to be paid per yard should cover the risk of any such changes that might operate to the disadvantage of the defendant Cobb, and that he should have the benefit of any alteration that should operáte in his favor, It was further agreed by the parties to said contract that the defendant Cobb should deposit all excavations upon the road in embankments, where embankments are needed, within an extreme haul of 1,000 feet, according to the direction of the plaintiff, or said chief or assistant engineers, and that Cobb should be paid in such cases for the excavation only. It was further agreed by said contract that the defendant Cobb should deposit all surplus excavations, not needed as embankments, in such place or places as the plaintiff or its chief or assistant engineers should direct. It was also provided by said contract that the defendant Cobb should take all borrowed earth for embankments from such place or places as the plaintiff or its chief or assistant engineers should direct, and that said material should be measured in embankment, and be paid for only at embankment prices. Said contract provided, also, [573]*573that the decision of said chief engineer, on any point or matter touching said agreement should be final and conclusive between the parties thereto, and each of the parties to said contract thereby waived any and all right of action, suit or suits, or other remedy in law, or otherwise, under said contract, or arising out of the same. Said contract provided, also, that in consideration of the performance of all the stipulations contained in. said contract by the defendant Cobb to be by him fulfilled and performed, and whenever said work should have been, in the opinion of said chief engineer, completely finished in every respect and performed agreeably to the various stipulations and specifications of said agreement, and said chief engineer should have furnished to the plaintiff a certificate of the fact under his hand, with his estimate of the quantities of the various kinds of work done by the defendant Cobb under said contract, which estimate should be final and conclusive between the parties to said contract, the plaintiff would pay to the defendant Cobb the sums that should be due under said contract at the rates specified in said contract. Said contract provided, also, that the plaintiff should furnish the defendant Cobb, at the locations where the same was to be used, all lumber, iron and piling to be used in building said road. Said contract provided, also, that the defendant Cobb should pay the plaintiff the sum of $100 per day for every day that should' elapse after the 1st day of November, 1910, until the completion of the conditions of said contract and the work thereunder. Said contract provided, also, that in the event of any delay in the delivery of material of any description by the plaintiff, which should retard the progress of the work and hinder the defendant Cobb from completing the work within the time stipulated for the completion of the work, the plaintiff’s engineer should decide as to whether, under the [574]*574circumstances, any premium or penalty should be imposed or exacted, and, if so, how much.

The defendant Cobb and the Pacific Surety Company executed to the plaintiff a bond, dated July 7, 1910, in the sum of $20,000, conditioned that, if the defendant Cobb should faithfully perform the said contract for the building of said eight miles of railroad on his part, according to the terms, covenants, and conditions thereof (except as provided in said bond), then said obligation should be null and void, otherwise to remain in full force and effect. Said bond contained the following conditions, to wit:

“(1) Notwithstanding that said contract is hereby referred to, this bond is nevertheless issued subject to the following express conditions, which shall be conditions precedent to the right of the ‘owner’ (the plaintiff) to recover hereunder.

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Bluebook (online)
137 P. 857, 68 Or. 569, 1914 Ore. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/astoria-southern-ry-co-v-pacific-surety-co-or-1914.