City of San Antonio v. McKenzie Const. Co.

88 S.W.2d 622
CourtCourt of Appeals of Texas
DecidedOctober 30, 1935
DocketNo. 9510.
StatusPublished
Cited by4 cases

This text of 88 S.W.2d 622 (City of San Antonio v. McKenzie Const. Co.) 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 San Antonio v. McKenzie Const. Co., 88 S.W.2d 622 (Tex. Ct. App. 1935).

Opinion

MURRAY, Justice.

On a former appeal of this case, found in 50 S.W.'(2d) ■ 349, this court reversed and remanded the cause for a new trial. The first appeal was by the McKenzie Construction Company from a judgment in the trial court that it take nothing against the city of San Antonio. That judgment was rendered upon an instructed verdict by the trial judge, on the theory that the contract sued on by the McKenzie Construction Company was void and not binding on the city of San Antonio.

The present appeal is presented by the city of San Antonio and certain of its officers, as appellants, from a judgment of the trial court allowing the appel-lee, McKenzie Construction Company, a recovery against the city in the sum of $82,157.08, with interest at the rate of 8 per cent, per annum from February 24, 1927, until paid. The judgment, also, authorized the issuance of a mandamus.

The McKenzie Construction Company, appellee here and plaintiff below, brought this suit upon an alleged expressed contract in writing between it and the city of San Antonio for the construction of what is now generally known as the “Olmos Creek Detention Dam.”' Appel-lee alleged that it was due large sums of money as a result of work performed and material furnished by it under the terms of this supposed contract.

The cause was submitted upon special issues to a jury, and, upon motion of appellee, judgment was entered for appellee, as above stated.

Appellants, by division III of their brief, attack the validity of the supposed contract on several grounds'. Their first attack is upon the validity of the ordinance accepting the “McKenzie Proposal.” Their second attack is upon the failure of the board of commissioners to approve the bond furnished by appellee for the faithful performance of the contract. Both of these points were decided, on the first appeal, against appellants, and will not be reopened here.

Appellants’ third attack relates to an interlineation made in the proposed contract before it was signed by the .proper parties, which it is contended rendered the contract invalid and of no effect. This point was not decided on the former appeal and will here be discussed.

We wish to here copy a part of what was said on the motion for rehearing in the former opinion (50 S.W.(2d) 349, 353) : “The contract and bond were executed upon printed forms prepared by the city, which forms, together with the ‘Notice to Contractors/ ‘Instructions to Bidders/ ‘General Conditions of the Agreement/ and ‘Specifications/ all also printed and furnished by the city and bound in pamphlet form comprising thirty-three consecutively numbered pages, was furnished by the city to all bidders, it being provided in the ‘Instructions to Bidders’ that all *624 these documents constituted a part of the contract. The second paragraph of the ‘Notice to Contractors’ provides that the bidder must furnish suitable guaranty that he will enter into the contract and execute bond and guaranty ‘on the forms provided.’ Appellant complied with these instructions as to the submission of his proposal and upon the acceptance thereof by the city commissioners, as noted in our original opinion, their discretion in the matter was exhausted. There remained nothing to be done except to fill in the few blanks from data appearing in the accepted proposal and for the parties to affix their signatures to the contract provided by the city. The words used in the ordinance accepting the proposal ‘subject to proper and sufficient contract’ can only, under the circumstances, be taken to mean and refer to the printed form of contract which the city had furnished and stipulated that the successful bidder must execute.”

It is clear from the above quotation that this court presumed, on the former appeal, that the contract which was executed between A. J. McKenzie, acting for McKenzie Construction Company, and Mayor Tobin was upon the exact form authorized to be executed by the ordinance passed by the board of city commissioners on July 28, 1925, while the present record shows quite to the contrary. 'A material interlineation was made in the proposed contract after the ordinance was passed authorizing the execution of the proposed contract, but before the interlined contract was executed by the mayor and appellee, on August 7, 1925. Thus, it is seen that the minds- of the real parties to the contract did not meet. That is to say, there was never a meeting of the minds of the board of city commissioners and the McKenzie Construction Company, because the board of commissioners authorized one contract by their ordinance and appellee executed another and different contract.

This interlineation was made in the following manner: After the city had advertised for competitive bids and after the McKenzie proposition had been accepted by ordinance, there was a conference between A. J. McKenzie, president o"f the McKenzie Construction Company, and his attorney, R. J. Boyle, Esq., on the one hand, and John W. Tobin, the then mayor of the city, S. F. Cre-celius, flood prevention engineer for the city, and perhaps others, on the other hand. The suggestion was made that there was a conflict between paragraphs 14 and 63 of the proposed contract. This led to an interlineation being made to paragraph 14 of the proposed contract. After the interlineation the contract was signed by A. J. McKenzie, as president of appellee company, and John W. Tobin, as mayor of the city.

Paragraph 14, prior to the interlineation, read as follows:

“14. Losses from Natural Causes.
“All loss or damage arising out of the nature of the work to be done, or from the action of the elements, or from any unforeseen circumstances in the prosecution of the same, or from unusual obstructions or difficulties which may be encountered in the prosecution of the work shall be sustained and borne by the Contractor at his own cost and expense.”

The interlineation which was added to this paragraph was as follows: “Except damage done by flood to material and work above elevation 685.00.”

Paragraph 63, which it was suggested was in conflict with paragraph 14, read in part as follows:

“63. Concrete — Preparation of Foundation.
“ * * * In case that a flood, which the contractor could not reasonably be expected to control, (rising above elevation 685) should cause foreign materials to be deposited on the foundation the Contractor shall remove same in a satisfactory manner and he shall be paid for such work at cost'plus fifteen per cent.”

It is clear that before the interlineation all loss or damage by flood was to be borne by the contractor, except that he was entitled to cost plus 15 per cent, for removing foreign material that might be deposited by flood on the foundation, but after the interlineation all damage done by floods rising above elevation 685, to work and material, was to be borne by the city. This was unquestionably a material alteration of the proposed contract.

Its materiality is fully shown by the following correspondence which passed *625 between Col. Crecelius and Mr. McKenzie :

On June 4, 1926, Col. Crecelius wrote Mr.

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Related

Reed v. Markland
173 S.W.2d 346 (Court of Appeals of Texas, 1943)
City of San Antonio v. McKenzie Construction Co.
150 S.W.2d 989 (Texas Supreme Court, 1941)
City of San Antonio v. McKenzie Const. Co.
138 S.W.2d 568 (Court of Appeals of Texas, 1940)

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88 S.W.2d 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-san-antonio-v-mckenzie-const-co-texapp-1935.