City of Crockett v. Murdock

440 S.W.2d 864, 1969 Tex. App. LEXIS 1958
CourtCourt of Appeals of Texas
DecidedApril 24, 1969
DocketNo. 423
StatusPublished
Cited by2 cases

This text of 440 S.W.2d 864 (City of Crockett v. Murdock) 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
City of Crockett v. Murdock, 440 S.W.2d 864, 1969 Tex. App. LEXIS 1958 (Tex. Ct. App. 1969).

Opinion

DUNAGAN, Chief Justice.

This suit was instituted in the District Court of Houston County, Texas, by appel-lee, Earl Murdock, against appellant, The City of Crockett, seeking to recover the sum of $1,522.50 deposited by appellee with appellant in lieu of a bid bond necessary in order to bid upon a public works contract. The case was tried to a jury, but at the conclusion of the evidence, by agreement, the case was withdrawn from the jury and [865]*865all matters were submitted to the court for a decision. The court granted judgment for appellee in the amount for which suit was brought. Appellant has timely perfected this appeal. Upon request, the court made and filed its findings of fact and conclusions of law, to which appellant excepted.

The facts developed in the trial are as follows: The City of Crockett, in 1962, desiring to construct a fire station, advertised for bids for the work. Appellee, as a contractor, received a copy of the plans and specifications issued by appellant and in due course submitted his proposal or bid accompanying the same with a cashier’s check in the sum of $1,522.50. The specifications issued by appellant contained several provisions which are here relevant.1 On May 14, 1962, the bids were opened and appellee was the low bidder. On the following day, appellee was orally notified by appellant that his bid was the lowest and that the contract for the job would be executed upon his furnishing the proper performance and payment bonds as required by the specifications.2 Although the specifications provided that the performance and payment bonds would be furnished within ten days after written notification from the architect of the award of the contract to the lowest bidder, the evidence shows that no formal written notification by the architect was given to appellee. However, it is undisputed that appellee was advised and had actual knowledge that the contract would be executed upon his furnishing the performance and payment bonds. Appellee, the only witness testifying in the case, admitted that having been awarded the contract, he attempted to obtain the performance and payment bonds, but was unable to do so. He did not ask for the return of his deposit until approximately one month after they had advised him he was the low bidder. Appellee further admitted that although the authorities of the City of Crockett gave him up to July 25, 1962, within which to furnish the performance and payment bonds, he was unable to obtain them and such failure on his part was the reason for the contract not being formally executed.

It was further shown that appellant, by instrument dated April 18, 1962, issued its Addendum No. 1, but it is not clear and the record does not show the exact date appel-lee acquired knowledge of the contents of [866]*866the addendum.3 However, he did have notice that appellant was authorized by virtue of the provisions of the specifications to make certain addenda to the contract. The record is silent as to whether the requirements of Addendum No. 1 were more onerous or more favorable to appellee than those contained in the original specifications and there is no evidence in the record as to whether Addendum No. 1 increased the cost for the contract or in any way enlarged the contractor’s obligations or diminished his contemplated profits. There is no evidence that appellee refused to enter into the contract because of the issuance or contents of the addendum but, to the contrary, he stated that the contract was not executed because of his own inability to obtain the required bonds. Appellee advised appellant on or about July 25, 1962, that he was unable to obtain a performance bond and the record does not show that up to that time appellee had ever raised any objection with reference to the issuance of the addendum. Insofar as is material here, the trial court found that after the bids were opened, appellee was first informed of the existing addendum to the specifications; that neither the architect nor anyone acting for appellant notified appellee, in writing, that he was the successful bidder. The trial court further found that at no time was a formal contract for the construction of the fire station tendered to appellee, but further found that appellee had actual knowledge of the award of the contract to him and he was advised that a formal contract would be executed upon his furnishing the performance and payment bonds as required by the specifications. The court found also that appellee failed to furnish the bonds and that he advised the governing body of The City of Crockett on July 25, 1962, that he could not obtain either bond.

The trial court held that when appellant accepted the bid of appellee for the construction of the fire station without advising him of the issuance of the addendum, appellant forfeited any right it may have had to retain the amount of the bid deposit and that the addendum constituted a material change in the specifications upon which appellee had based his bid. The court further concluded that appellee could not be in default in his failure to furnish the performance and payment bonds until appellant’s architect had first notified appel-lee, in writing, that he was the successful bidder and the court further found that no contract had ever been tendered to appellee. Accordingly, judgment was entered in ap-pellee’s favor for the amount of the deposit he had made with his proposal.

By appropriate Points of Error, appellant attacks the trial court’s judgment on the following grounds: (a) Appellee was barred from recovering the deposit because of his failure and inability to furnish the performance and payment bonds; (b) There is no evidence supporting the trial court’s finding that no contract was tendered appellee, and that such finding likewise is against the great weight and preponderance of the evidence; (c) The trial court erred in finding that Addendum No. 1 was [867]*867a material change to the specifications, relieving appellee from default; and (d) The trial court erroneously held that the failure of appellant’s architect to notify appellee in writing that he was the successful bidder relieved appellee from default.

On the other hand, appellee attempts to sustain the judgment below upon the following grounds: (a) The issuance of Addendum No. 1, of which appellee had no knowledge at the time he made his bid, was a material change in the drawings and specifications, relieving appellee of his default; and (b) The failure of appellant’s architect to give appellee written notice that he was the successful bidder as required by specifications and the failure of appellant to tender the contract to appellee operated to relieve appellee of his failure to furnish the bonds.

In our opinion, the trial court’s judgment cannot be sustained upon either ground.

The evidence discloses that Addendum No. 1 was issued by instrument dated April 18, 1962. There is no evidence in the record as to whether the requirements of such addendum were more or less onerous than those contained in the original specifications. The record does not show whether the addendum increased the contractor’s costs in the performance of the contract or in any other way enlarged or diminished his obligations thereunder. According to the record, appellee claims he did not learn of the existence or contents of the addendum until the bids were opened on May 14, 1962. However, he continued in his efforts to obtain the performance and payment bonds up until July 25, 1962, at which time he advised appellant that he was unable to obtain the bonds.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
440 S.W.2d 864, 1969 Tex. App. LEXIS 1958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-crockett-v-murdock-texapp-1969.