Chard v. Ryan-Parker Construction Co.

182 A.D. 455, 169 N.Y.S. 622, 1918 N.Y. App. Div. LEXIS 7886
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 8, 1918
StatusPublished
Cited by11 cases

This text of 182 A.D. 455 (Chard v. Ryan-Parker Construction Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chard v. Ryan-Parker Construction Co., 182 A.D. 455, 169 N.Y.S. 622, 1918 N.Y. App. Div. LEXIS 7886 (N.Y. Ct. App. 1918).

Opinion

Shearn, J.:

The respondent, as receiver in supplementary proceedings of Cornelius J. Sullivan, has recovered a judgment against the defendant for $383,079.67, entered on the verdict of a jury. The claim is based upon an instrument in writing, dated May 3, 1906, between Sullivan and the defendant, reciting and providing:

That the said Cornelius J. Sullivan has heretofore rendered service to the said Ryan-Parker Construction Company, and by the covenants and agreements of this contract, promises to render services in the future, and in consideration of such service rendered and to be rendered the said Ryan-Parker Construction Company covenants and agrees as follows:

That if and in the event the contract for the construction of the Manhattan Bridge over the East River between the Boroughs of Manhattan and Brooklyn shall be awarded to the said Ryan-Parker Construction Company, for which contract the said Ryan-Parker Construction Company has submitted its bid, estimate, bonds, contract and specifications, the said Ryan-Parker Construction Company- covenants and agrees to give and secure to the said Cornelius J. Sullivan one-half of the net profits which the said Ryan-Parker Construction Company shall receive under and by virtue of the execution and full performance of the said contract for the construction of said bridge between the City of New York and the said Ryan-Parker Construction Company. * * * That for and in consideration of the covenants and agreements hereinbefore expressed, the said Cornelius J. Sullivan hereby agrees and covenants to render to the said Ryan-Parker Construction Company such service or services as [458]*458may be required of him by the said Ryan-Parker Construction Company in a managing or advisory capacity.

“ In witness whereof, the party of the first part has caused its corporate name to be hereunto subscribed by its President, and its corporate seal to be hereunto affixed and the party of the second part has subscribed and sealed this agreement. “ RYAN & PARKER CONSTRUCTION CO.,
“ By P. Ryan, President.
[seal]
“ CORNELIUS J. SULLIVAN, [seal].”

Cornelius J. Sullivan, who will be referred to as the plaintiff, was engaged in the life insurance business as his regular employment. From time to time he had other activities. He was connected with the Sullivan Advertising Company, had been interested in the promotion of a patented preparation called “ Bromonia,” and had had a contract with the Monorail Company “ for the purpose of furthering the interests of the corporation in regard to their affairs” and “if there was any public letting of work to be done, to see if we couldn’t get their system adopted, especially for the — the particular subject was that they were trying to get a franchise to run a spur track on 42nd Street.” Plaintiff was not an engineer and had never had anything to do with bridge construction. He was not a lawyer and had never studied law. He was a second cousin of Timothy D. Sullivan, who had been a State Senator and was at the time involved, according to the testimony, a member of Congress and regarded as a man of influence and prominence in politics in the city of New York. The plaintiff and Timothy D. Sullivan had certain interests in common and for several years preceding 1906 it had been their custom to meet at the rooms of the Timothy D. Sullivan Association practically every day when they were in the city.

The defendant corporation represented and practically handled and carried on the contracting business of the firm of Ryan & Parker, and previous to the Manhattan bridge project had carried out contracts for important public improvements, such as the Riverside Drive viaduct and foundations for the Blackwell’s Island bridge.

At the outset, attention is arrested by the extraordinary character of this contract, whereby for services not specified [459]*459or described, a business corporation agreed to pay a man engaged in the life insurance business one-half of its profits in building a bridge for the city at a contract price, as the evidence shows, of $6,483,223.

Plaintiff’s claim is substantially this: That in 1905 the city of New York received bids for the construction of the Manhattan bridge, and the lowest bid was for $7,284,739; that this amount was apparently the result of an agreement among the bidders and the courts enjoined the letting of the contract at that price, and the matter was thrown open for new bids; that plaintiff, believing that the other bidders were still in an agreement to keep the price high, conceived the idea of putting in a bid which would result in a substantial profit and yet be sufficiently low to make probable the obtaining of the contract; that he revealed this plan to Patrick F. Ryan, defendant’s president, and worked with him in elaborating the project and determining the figures. He testified that, by studying the schedules employed on the previous bidding and considering the estimates made by Ryan and by LaChicotte, defendant’s engineer, he was enabled to advise the defendant to put in a bid of $6,493,000, and that substantially this bid was put in by the defendant on April 30, 1906, and the contract awarded to defendant. Plaintiff does not explain how he was able to make up a bid that would cover cost and profit without any knowledge or experience whatever in bridge or other construction. It may also be noted here in passing that LaChicotte recovered and collected -a judgment for some $40,000 for bringing this matter to the attention of the defendant and preparing the bid. Plaintiff further claims that thereafter he conducted negotiations for materials, dealt with a surety company and the comptroller regarding a bond, interviewed various concerns at the request of Ryan and reported to him, the results of the interviews, negotiated with the Phoenix Bridge Company, to which the contract for structural steel was finally given, and had to do with the contract with the Carbon Steel Company for cables and with Terry & Tench for construction work; and that for several months he devoted practically all of his time in endeavoring to forward the project and carried out every instruction given to him.

[460]*460The defendant, denying that plaintiff ever rendered it any services of any value whatever, contends that the agreement sued upon, executed by its president Ryan, was unauthorized and never ratified, that it is too indefinite to be enforcible, and that the intention and purpose of the agreement was to procure political influence to obtain the award of the bridge contract, and once obtained, to render it secure against attack, and, therefore, that it is void as against public policy.

That the president of the defendant would have to be expressly authorized to bind the defendant to a contract of this extraordinary character is obvious. Plaintiff relies in the first instance upon the presumption arising from the fact that the corporate seal of the defendant was affixed to the instrument. (Quackenboss v. Globe & R. F. Ins. Co., 177 N. Y. 71.) The defendant meets the presumption by showing that the contract never was authorized by the board of directors. Plaintiff rejoins by claiming that the defendant was virtually a one-man corporation and that Ryan was the corporation,” and relies upon cases holding that when a corporation consists of a small number of persons they may effectually transact their business in a very informal manner.

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Bluebook (online)
182 A.D. 455, 169 N.Y.S. 622, 1918 N.Y. App. Div. LEXIS 7886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chard-v-ryan-parker-construction-co-nyappdiv-1918.