City of Newport News v. Potter

122 F. 321, 58 C.C.A. 483, 1903 U.S. App. LEXIS 4760
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 5, 1903
DocketNo. 472
StatusPublished
Cited by13 cases

This text of 122 F. 321 (City of Newport News v. Potter) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Newport News v. Potter, 122 F. 321, 58 C.C.A. 483, 1903 U.S. App. LEXIS 4760 (4th Cir. 1903).

Opinion

McDOWEEL, District Judge.

This is an action of assumpsit brought in the Circuit Court for the Eastern District of Virginia by Alexander Potter, a citizen of New York, against the city of Newport News. There was a verdict and judgment for $4,000 and costs in favor of the plaintiff below. The case is brought here by the city on writ of error. In March, 1898, bids were invited by the city for the construction of a sewer system, the plans and specifications for which had been previously prepared by Mr. Potter, and on June 23, 1898, the city council by resolution awarded the contract to the lowest bidders, M. Honan & Sons. On June 25th a written contract, which had been drafted by Potter, was signed by Honan & Sons, and was executed under its seal by the city. Clauses 10 and 23 of this contract, which will be called the Honan contract, must be here set out for a proper understanding of some of the controverted questions in this case.

“Clause 10. In case of any unnecessary or inexcusable delay in the general conduct of the work, the engineer will notify the contractor in writing to that effect. If the contractor should not, in five days thereafter, take such measures as will, in the judgment of the engineer, insure the satisfactory completion of the work in the specified time, the engineer may then, by and with the consent of the council, notify the aforesaid contractor to discontinue all work under this contract, and it is hereby agreed that the contractor is to immediately respect said notice and stop work. The engineer shall thereupon have the power to take such and as many persons as he may deem advisable, by contract or otherwise, to work at and complete the work herein ■described, and to use such materials as he may find upon the line of said work, or to procure other materials for the completion of the same, and to charge the expense of said labor and the material to the aforesaid contractor, and the expense so charged shall be deducted and paid to the parties of the first part out of such moneys as may then be due to the said contractor under and by virtue of this agreement, or any part thereof; and in case such expense is less than the sum which would have been payable under this con[323]*323tract if the same had been completed by the party of the second part, the contractor shall be entitled to receive the difference. If the' expense is greater, then the bondsman will be called upon to make good the difference.”
“Clause 23. Construction work must begin as soon as practicable and all of the work enumerated in this contract and specifications shall be entirely completed and ready for acceptance on or before the first day of December, 1898. And it is distinctly understood that the time specified for the completion of said work is of the essence of this contract, and said contractor shall not be entitled to claim performance of this contract unless the work is entirely completed in every respect on or before the date specified. If the contractor is permitted to finish the work there shall be deducted from money due the party of the second part the sum of twenty-five (25) dollars per day for each and every day’s delay in the completion beyond the time set in this contract for engineering and inspection, which amount shall be paid to the engineer. And the said party of the first part agrees to pay to the party of the second part an equal per diem amount for each and every day the work is completed before the date set for completion to be paid by the engineer.”

On June 27, 1898, a written contract, the terms of which had in the main been previously agreed on, between Potter and the city was executed. By this contract Potter agreed to supervise and superintend the construction of the sewer system, and to provide at his own expense such engineers-, inspectors, and other employés as might be necessary to secure compliance by the contractor with the plans and specifications. Pie was also to give to the work so much of his own time and talents as might be needed to thoroughly protect the interests of the city, and to see that the work of the contractors was done' in a complete and satisfactory manner. For such services the city agreed to pay Potter per cent, of whatever sums might become due to Honan & Sons, to be paid as installments became payable to the contractors.

Early in the progress of the work it was unexpectedly found that the pipe lines in many places passed through quicksand. This so much increased the difficulties and cost of the work that Honan & Sons, after some months of effort, ceased to attempt a compliance with their contract, and on January 24, 1899, abandoned the still incomplete work. Under clause 10 of the contract, notice having been given without effect, the council by resolution of February 4, 1899, formally ordered Honan & Sons to cease work. When Honan & Sons made the contract with the city they gave a bond for $40,000, conditioned on compliance with the contract. The surety on this bond had been indemnified by a counter bond made by the Delaware County Trust, Safe Deposit & Title Insurance Company, and to this company—to be hereafter called the Delaware Company—Honan & Sons assigned their contract with the city. On February 8, 1899, the Delaware Company'proposed that it would take up and finish the contract of Honan & Sons. By resolution of March 8, 1899, this proposition, with some additions to be hereafter mentioned, was ¿ccepted. The Delaware Company took up the work on or very shortly after March 8th, and continued at it until October 3, 1S99, when it ceased work, leaving the system in an unsatisfactory condition. The city paid the Delaware Company in installments until July 1, 1899, but refused to pay for the work done between July 1 and October 3, 1899, and it was not until a compromise was effected [324]*324between the company and the city, in December, 1900, that any payment was made to the company for this part of the work.

On November 9, 1899, a resolution was adopted, which, in so far as is now material, reads as follows:

“Whereas, the Delaware County Trust, Safe Deposit and Title Insurance Company failed to construct, clean, and repair the sewer system of this city, in accordance with the provisions of its contract with said city, within the time limited by said contract; and whereas, the said company has, since the expiration of its time limit, stopped work on the said sewers, and has done no work under the said contract or in the construction, cleaning, and completing the said sewers thereunder, since the 3d day of October, 1899; and whereas, the said company did, on the 3d day of October, 1899, notify the council that it had or intended to abandon its contract and to cease said work; and whereas, the said company was notified on the 19th day of October, 1899, that its work had been and was being unnecessarily and inexcusably delayed, and to take such measures as would insure the satisfactory construction, cleaning, and completion of said work under its contract; and whereas, no measures of the kind required have been taken, and the said company has , no apparent design of performing its said contract, and of constructing, cleaning, and completing the sewers in accordance therewith; and whereas, the said sewers have not been sufficiently and satisfactorily constructed, and those that are built are partially filled with sand and other obstructions, and are totally unfit for service as sanitary sewers, and in.

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Cite This Page — Counsel Stack

Bluebook (online)
122 F. 321, 58 C.C.A. 483, 1903 U.S. App. LEXIS 4760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-newport-news-v-potter-ca4-1903.