Barker v. Belknap's Estate

39 Vt. 168
CourtSupreme Court of Vermont
DecidedAugust 15, 1866
StatusPublished
Cited by10 cases

This text of 39 Vt. 168 (Barker v. Belknap's Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barker v. Belknap's Estate, 39 Vt. 168 (Vt. 1866).

Opinion

The opinion of the court was delivered by.

Wilson, J.

The original bill was brought to recover for work and labor done on sections ten and eleven of the Vermont Central Railroad, by the orators, under contract between them and Sewall F. Belknap, Belknap being the contractor for building the whole line of the road. The bill was made returnable to the May Term of Washington County Court'of Chancery, in 1850. It set forth the contract between the orators and Belknap, and the contract between Belknap and the railroad company, which contained a proviso that the company should make monthly estimates of the work, and that the amount so estimated should be paid, (excepting the reserve of ten per cent.) ; that the engineers of the company fraudulently and by collusion between Belknap and the railroad company made the monthly estimates grossly too small; that the work so fraudulently omitted amounted to about ¡$17,000., and praying for a decree that the railroad company and Belknap’s estate should pay such deficiency to the orators. The bill further alleged that the railroad'company were bound to have their engineers make such estimates ; that they never made any other estimates for Belknap, or any other person than the fraudulent ones stated in this bill; that the [170]*170value of tbe over work still remained in the hands of the company; that they were largely indebted to Belknap’s estate, and that Bel-knap’s estate is wholly insolvent.

The answer of the railroad company set forth their contract with Belknap to build the road, denied all privity of contract with the orators, denied that the company ever assented to Belknap’s subletting the work to the orators, and alleged that they had no contract or dealings with any one but Belknap. Their answer also denied all fraudulent estimates, all collusion with Belknap. It admitted the monthly estimates were, and had to be approximations to the true amounts, hut that full and correct estimates of the work done by the orators were made by the engineers, and were satisfactory to and acquiesced in by Belknap, and claimed that the company were not indebted to Belknap’s estate, but that Belknap’s estate was indebted to them.

The answer of Belknap’s administrators denied all fraud, and claimed that the estimates of the work done by the orators was correct.

The case shows that at the March Term, 1853, a hearing was had before the chancellor upon bill," answers, report of masters, and other proofs, that a decree was made in the premises, from which there was an appeal to the supreme court.

Upon the allegations, and issues made in the original bill the supreme court decided in Herrick v. The Railroad Company, 27 Vt. 673 and 700,

1. That there was no proof of fraud in making the estimates.

2. That the estimates were too small, but made so by mistake and in good faith. That no fraud being proved, and there being no privity of contract between the orators and the railroad company, the company was not liable to the orators to pay them for the amount due them and under estimated by mistake.

3. That chancery had jurisdiction of the case to enable the orators to recover of Belknap’s estate for the work so under estimated by mistake on account of the privity of contract between them and Belknap and of his liability by contract to have the work properly estimated by competent engineers.

[171]*1714. That the facts stated in the bill as to the value of the over work being still retained by the company for their own benefit, and that the company was indebted to Belknap’s estate did not constitute such over work a specific fund in the hands of the company for the benefit of the orators, and for which they might have a decree against Belknap’s estate ; nor did the indebtedness of the company to Belknap’s estate constitute any sufficient ground of equitable relief for the orators against the railroad company. Belknap and the company failed to establish that the estimates were correct, but the orators did establish errors in them, and a sum due from Belknap’s estate, and upon the ground of mistakes in the estimates, and privity of contract, the orators obtained a decree against Belknap’s estate. It appears that the case was remanded to the court of chancery, under a mandate that it be dismissed as to the railroad company, and be retained only as against Belknap’s estate, and that it be referred to masters to report the amount of under estimates, the former report having been set aside.

The masters to whom the subject was referred filed their report in November, 1855 ; but the case does not show that auy further proceedings were had until March Term, 1860 ; nor had the railroad company been formally dismissed from the bill pursuant to the mandate of the supreme court. The case shows that at this stage of the proceedings in the original bill against Belknap’s estate alone, his administrators being liable for mistakes of the engineers of the railroad company, who were under contract with Belknap, and whose duty it was to have made correct estimates, claimed thereupon that it was wholly the fault of the company that the under-estimates were made, and that for the work so under-estimated, and which had not been estimated or paid for, the company ought to pay to the orators. The administrators of Belknap claimed that the railroad company was indebted to Belknap’s estate for the work so under-estimated, for which Belknap’s estate was indebted to the orators, and for so much more as the compensation Belknap was to receive from the company for the work exceeded that for which the orators stipulated to do the same work. They claimed that the decree in favor of Barker and Haight against Belknap’s estate had, by establishing the existence of the [172]*172errors in the estimates, and the liability of the estate therefor, established a ground of equitable relief in favor of Belknap’s estate against the company ; that the same privity of contract which existed between Belknap and the orators, and bound them to pay the orators for the under-estimates, existed between the administrators of Belknap’s estate and the railroad company, and bound the latter to pay to them what they were required to pay to the orators. It was upon these grounds that the administrators of Belknap obtained leave to file a cross bill in favor of the estate of Belknap against the railroad company and Barker and Haight, founded upon equities alleged to have arisen from the facts established by the decree in the former bill.

The cross bill first sets forth the substance of all the allegations contained in the original bill, and the proceedings and decree in that case. It also sets forth that the contract of Belknap with Barker and Haight was predicated on his contract with the railroad company ; that Belknap relied upon the fidelity of the company fulfilling the contract on its part with him ; that he might fulfil the same stipulations in his contract with Barker and Haight. It sets forth that the company by its engineers, from time to time, made estimates of the work done by Barker and Haight, and paid over the same to Belknap accqrding to the estimates, who paid the same to Barker and Haight. That Belknap was to have a much larger compensation for the same work than Barker and Haight were to receive by their contract with Belknap ; that the engineers who made the estimates were the servants of the railroad company ; that if there was any error or fraud in the making of the estimates, it arose from the fraud and neglect of the railroad company and its engineers.

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Bluebook (online)
39 Vt. 168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barker-v-belknaps-estate-vt-1866.