Central Union Stock Yards Co. v. Uvalde Asphalt Paving Co.

87 A. 235, 82 N.J. Eq. 246, 12 Buchanan 246, 1913 N.J. Ch. LEXIS 68, 1913 N.J. Sup. Ct. LEXIS 1
CourtNew Jersey Court of Chancery
DecidedJune 6, 1913
StatusPublished
Cited by5 cases

This text of 87 A. 235 (Central Union Stock Yards Co. v. Uvalde Asphalt Paving Co.) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Union Stock Yards Co. v. Uvalde Asphalt Paving Co., 87 A. 235, 82 N.J. Eq. 246, 12 Buchanan 246, 1913 N.J. Ch. LEXIS 68, 1913 N.J. Sup. Ct. LEXIS 1 (N.J. Ct. App. 1913).

Opinion

Grirftn, Y. C.

The bill in this cause is filed to set aside an award of arbitrators appointed under a contract between the complainant and defendant, which contract and the specifications provide for the preparation of a foundation, grading and paving in the new stock yards of the complainant situated at Communipaw, Jersey City, and are in the usual form for such improvements, con[248]*248taining clauses providing for the manner of payment, and. which virtually make the owner, through its engineer, the arbiter of the sufficiency of the work and materials done and furnished during the progress of the work, and whose direction as to the manner of doing the work must be followed. These clauses are so framed that it is difficult to perceive how the owner on the completion of the work could be dissatisfied if the power of direction and supervision possessed by it and its engineer were property exercised during its progress.

The sixth mutual covenant binds the contractor to make any repairs, renewals or replacements made necessary at any time during one year from and after completion of the work because of or growing out of defective materials used or workmanship done, at its own expense, on demand by the complainant; but it was understood that any defect in the work due to any settlement which might take place in the paving because of a settlement of the ground upon which the paving was laid should not be considered defective workmanship. •

The seventh and eighth mutual covenants are as follows:

“Seventh. No certificate given or payment made under this contract, except the final certificate or final payment, shall be conclusive evidence of the performance of this contract, either wholly or in part, and no payanient shall be construed to be an acceptance of defective work or of improper materials.
“Eighth. In case of any disagreement or dispute between the contractor and the stock yards company respecting the true construction or meaning of any specification, map, profile or plan, the same shall be referred to and decided by the engineer, and his decision shall be final and conclusive ; but should any disagreement or dispute arise relating to the true performance of any covenant or agreement, or the true value of extra work, because of a written requisition under the third mutual covenant, then and in either of such cases such disagreement or dispute shall be referred to three arbitrators, one to be selected by each of the parties, and the third to be selected by the two selected by the parties, and the decision in writing by a majority shall be final. Each party hereto shall pay one-half of the expense of such reference.”

Under the title “Grading” the specifications provide that the then present surface of the area to be paved should be brought to an uniform grade conforming to a plane parallel and distant sufficiently below the established grade of the pavement, to allow [249]*249the stone block to be laid on the ground so that the top of the block should conform to the desired grades shown on the drawings.

Under the title “Pavement” it is provided as follows:

“The proposed pavement shall consist of -selected blocks, laid so. as to form a fairly uniform level top; they shall be laid on a sand bed one inch thick; after the paving is completed, it shall be rammed to a uniform even surface, satisfactory to the engineer or his inspector, and after having been so rammed .it shall be immediately covered with a Portland cement grout consisting of one part Portland cement and two parts clean sharp sand. This shall be spread dry over the pavement, leaving a surplus of at least one-eighth inch to one-quarter inch in thickness. Water shall then be added, and with the aid of brooms this grout shall be swept over and all about on the paved surface until the joints and interstices between said blocks shall be completely filled. No blocks with badly broken faces will be'accepted.”

The specification also provide as follows;

“Sand. Sand shall be clean, hard, sharp and coarse, or a mixture of fine and coarse of an approved quality.
“Clean, sharp sand, free from loam, now on the premises may be used.”

Under the title “Engineer” it says that the said word “engineer” used in the specifications is understood to mean tlie engineer of the stock yards company, unless otherwise mentioned, or his duly-authorized agents limited by the particular duties entrusted to them.

The work thus contemplated by the contract and specifications was the bringing of the surface of tbe proposed way to a uniform subgrade, spreading thereon sand to a depth of one inch, aud ramming so as to produce a uniform surface, and filling in tbe joints and interstices between the blocks with a cement grout composed of one part Portland cement and -two parts clean, sharp sand. The apparent purpose of the grouting was not only to produce a surface from which the water would flow readily, preventing percolation between the joints, but also to form a binder between the blocks, which, when the grout thoroughly set, would so bind the pavement together as to form a- solid mass covering the whole area, to the end that the impact from travel would not be borne by a single block, but resisted by a wide area, [250]*250apparently a character of construction deemed necessary in view, of the nature of the foundation, which consisted largely of a very deep sand fill dredged from the river, which fill was not compacted and thus did not afford a solid base.

The work was proceeded with, and one intermediate payment made without the certificate of the engineer, which payment, however, did not constitute a waiver of the right to demand the production of the final certificate.

The defendant finished the work -on July 22d, 1909, and on the same day rendered a bill with what purported to be a final certificate of one J. E. Walker, written at the bottom of the bill or estimate of quantities, as follows:

“Work complete and satisfactory, June 22/09, O. K., J. E. Walker.”

The date “June 22/09,” it is conceded should have been “July 22/09.” This certificate is not the certificate provided by the agreement, which requires the certificate of the engineer. Walker was not the engineer, nor does it appear that he u as the inspector appointed by the engineer, but was merely an employe of the stock yards company, who, in the absence of the inspector, seems to have acted as overseer of the work.

About August 17th, 1909, the first use was made of the pavement and the complainant alleges that it broke up under the traffic, due to the failure to grout the joints and interstices between the blocks in accordance with the specifications, and refused to pay the balance of the contract price; whereupon the defendant here commenced its suit in the Hudson circuit court for the balance due upon the contract. To the declaration the complainant pleaded that an arbitration .under the eighth mutual covenant was a condition precedent to the bringing of suit, and that none was had; to this plea the defendant here demurred, and the court, in an opinion filed, overruled the demurrer, whereupon the- defendant here discontinued its suit and proceeded to arbitrate, each party selecting one arbitrator and they selecting a third, all of whom were engineers.

The arbitrators met and heard the parties.

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Bluebook (online)
87 A. 235, 82 N.J. Eq. 246, 12 Buchanan 246, 1913 N.J. Ch. LEXIS 68, 1913 N.J. Sup. Ct. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-union-stock-yards-co-v-uvalde-asphalt-paving-co-njch-1913.