City of Houston v. Potter

91 S.W. 389, 41 Tex. Civ. App. 381, 1906 Tex. App. LEXIS 371
CourtCourt of Appeals of Texas
DecidedJanuary 19, 1906
StatusPublished
Cited by15 cases

This text of 91 S.W. 389 (City of Houston v. Potter) 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 Houston v. Potter, 91 S.W. 389, 41 Tex. Civ. App. 381, 1906 Tex. App. LEXIS 371 (Tex. Ct. App. 1906).

Opinion

BEESE, Associate Justice.

Alexander Potter sued the city of Houston to recover $1,237.06, being balance due him for services in superintending and engineering the work of constructing a S3rstem of sanitary sewerage for the city of Houston under a written contract with the city, executed by himself, and for the city by S. H. Brashear, mayor, and the members of the sewer committee, and attested by the city secretary and the seal of the city.

*386 By the terms of the contract the plaintiff, Potter, agreed to perform the entire work of superintending and engineering the construction of said sewerage sj'stem, and to assume the responsibility and general direction of the entire work from the time of the letting of the contract to the final completion and acceptance, not to include the construction of ordinary sewers authorized by the city council. The services to be performed by plaintiff under the contract are set out in detail. As compensation the city of Houston agreed to pay him in installments, as the work progressed, five percent upon the cost to the city of the work or material furnished by the contractors, retaining, however, $3,000 until the successful completion and installation of the entire work in running order. It was provided in the contract, which is dated September 7, 1899, that the compensation was to be paid out of the proceeds of the sale of bonds authorized by a vote of the taxpayers of said city on July 11, 1899, to be issued for the purpose of constructing a sewerage and sanitary system for said city, and if for any cause the bonds should not be realized upon in the next twelve months, the contract was to become void. This stipulation was afterwards changed under the authority of an order of the city council entered on the minutes, so as to provide that the compensation was to be paid out of the proceeds of the sale of bonds authorized to be issued by vote at an election held November 9, 1899, the change being made on February 3, 1900, for the reason that it was found that the first election, on July 11, 1899, was invalid, and another election was held on November 9, 1899, under which the bonds were issued and sold. This bond issue was for $300,000.

The cost of the work was $361,371.39, five percent of which, being plaintiff’s commission or compensation, amounted to $13,063.56, of which plaintiff was paid $11,836.50, leaving a balance of $1,337.06, for which he sues.

To this petition defendant, the city of Houston, answered by general demurrer and special exceptions:

1st. That it was not alleged that, at the time of the contract, the city had no competent and qualified city engineer.

3d. That it appeared that the contract was a matter pertaining to public improvements involving an outlay of more than $500, and it was not alleged that the matter of plaintiff’s employment was referred to the board of public works.

3d. That it was not alleged that the work of making said improvements had been let out by sealed bids to the lowest bidder.

Defendant further interposed a general denial, and specially pleaded that the plaintiff’s compensation was to be paid out of an issue of bonds of $300,000 to pay for sanitary sewers; that the sewers had cost more than that amount, exhausting the fund, and therefore there was no liability; that the amount was more than $500, and had not been submitted to the board of public works; that plaintiff failed to comply with his contract, and defendant, on account of such failure, had been put to an expense of $1,500 in putting the sewerage system in such condition that it could be successfully operated, which was pleaded in setoff.

Defendant also pleaded the statute of limitation of four years.

The general demurrer and special exceptions were overruled, and, *387 upon trial before the court without a jury, there was judgment for plaintiff for the amount sued for, from which judgment- defendant appeals.

The following findings of fact of the trial court, none of which arc attacked in appellant’s brief, are here adopted:

“On September 7, 1899, plaintiff (a sanitary civil engineer) and the city of Houston, the latter acting by its mayor and sewer committee, entered into a written contract, under the seal of said city and attested by its city secretary, whereby plaintiff agreed to supervise the engineering work in the construction of its proposed sewerage system, and the city agreed to pay him, as the work progressed, five percent upon the cost (to the city) of the work or material furnished by the contractors, but providing that the city should have the right to withhold $2,000 until the successful completion and 'installation of the entire-work in running order, said compensation being payable out of certain bonds, which were stated in the contract to have been authorized by a vote of the taxpayers of said city on July 11, 1899, for the purpose of building said system. That afterwards said city discovered that there was a question as to the legality of the election held July 11, 1899, and the city council thereupon, on January 29, 1900, duly passed a motion stating that said contract with Potter had been entered into by authority of said council, and that the date of the election had been changed to November 9, 1899, and authorizing the mayor to accordingly alter the contract so as to state the latter date. This change was made by an addendum to the contract indorsed thereon, signed by its mayor and attested by its city secretary’s signature and corporate seal. The board knew of the building of said sewerage system by said city, and that plaintiff was superintending the work, and they consulted and cooperated constantly with plaintiff, as the supervising engineer thereof during the entire time it was being built, and knew everything that was being done by him in supervising the same. That said bonds were duly sold by said city in December, 1899, and at least $100,000 of the proceeds were in the treasury before said motion of January 29, 1900, was passed, and the entire amount, $300,000, was received within twelve months from date of the original contract. That plaintiff did all the work required by the terms of said contract, and fully supervised the building of said system (except a small portion which the city decided not to build, and on which no commission was charged), and it was accepted and completed and turned over to the city, and duly installed in running order, on March 12, 1902. That the total cost to the city of the work and material furnished by the contractors was $261,271.29, which was duly paid to said contractors, thus making a commission of $13,063.56 earned by plaintiff, and that of this amount the city paid said Potter $11,826.53, leaving a balance of $1,237.03. That the fair, reasonable value of the services performed by said Potter, was the sum-of five percent of the amount so paid for the work and material. The plaintiff used care, .skill and diligence in the performance of his duty, and the city took and enjoyed, and is still enjoying, a valuable sewerage system, and which was accepted as satisfactory to the city. That the defendant used, for purposes other than the payment of the balance so owing to plaintiff, all of the proceeds of the sale of the bonds afore *388 said, and the city’s books for two years past contain an entry to credit plaintiff for amount sued for.”

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Bluebook (online)
91 S.W. 389, 41 Tex. Civ. App. 381, 1906 Tex. App. LEXIS 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-houston-v-potter-texapp-1906.