Cline v. Fountain Rock Lime & Brick Co.

122 A.2d 449, 210 Md. 78, 1956 Md. LEXIS 442
CourtCourt of Appeals of Maryland
DecidedMay 7, 1956
Docket[No. 112, October Term, 1955.]
StatusPublished
Cited by13 cases

This text of 122 A.2d 449 (Cline v. Fountain Rock Lime & Brick Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cline v. Fountain Rock Lime & Brick Co., 122 A.2d 449, 210 Md. 78, 1956 Md. LEXIS 442 (Md. 1956).

Opinion

Brune, C. J.,

delivered the opinion of the Court.

This is an appeal from a judgment for $7,000 entered upon the verdict of a jury in the Circuit Court for Carroll County in favor of the plaintiff-appellee, Fountain Rock Lime and Brick Co., Inc. (Fountain Rock), against the defendant-appellant, Earl H. Cline. The suit was originally filed in Frederick County, and various preliminary matters were acted upon there. It was removed on suggestion of the defendant and was sent to Carroll County for trial.

The suit was brought on the common counts and on a special count which alleged that the “defendant agreed with the plaintiff to lease the plaintiff’s real estate, plant and equipment and to pay the plaintiff for the same a percentage of profit with a guaranteed minimum amount; that the defendant took possession under the terms of the said oral agreement, of the plaintiff’s property and used it for his own benefit but has never made any payment under his agreement, although the plaintiff has done everything under the contract that it was supposed to do.” In response to an order to furnish the particulars of its claim, the plaintiff filed a bill of particulars which *82 asserted claims against the defendant “by terms of an oral contract”: for (1) top soil and clay taken from its property and sold by the defendant without the plaintiff’s permission; (2) a right of way “sold or given to the Frederick County Roads Board without the plaintiff’s knowledge and consent”; (3) rents received by the defendant from the rental of dwellings and not accounted for; (4), (5), (6) and (7) amounts paid by the plaintiff for taxes, interest on mortgages, mortgage principal and insurance for the years 1950 and 1951 “guaranteed by the defendant”; (8) payroll paid by the plaintiff on the defendant’s account for those years; (9) $50 a week “guaranteed by the defendant to the plaintiff” for those .years; (10) damages for breach' of contract to pay items (4)-'•(7) and item (9), “which contract was to run until 1955”; and (11) “special damages for destroying the plaintiff’s good will and causing plaintiff’s business to be destroyed by the defendant’s holding himself out as owner of the plaintiff’s property and receiving contracts and profits on the strength of his representations.”

The case was submitted to the jury under instructions, to which the appellant duly excepted, which permitted the jury to award damages for “rent lost” (which seems to go beyond item (3) of the particulars), taxes, interest and insurance (items (4), (5) and (7) of the bill'of particulars) and for the cost of pumping out the plaintiff’s quarry and' for the loss of the plaintiff’s share of the profits on a contract (or subcontract) with a concern known as Conduit and Foundation Company (referred to below as the “Conduit Company”) for rock used as rip-rap for or adjacent to the abutments of a bridge. The item for pumping out the quarry is not readily identifiable with any of the items enumerated in the bill of particulars. The appellee seeks to support the claim for lost profits on the Conduit Company contract as falling within item (11) of-the bill of particulars.

The plaintiff’s damage prayer, which was granted, made no specific reference to items (1), (2), (6), (8) or (10) of the bill of particulars. Testimony as to any damages under items (1) and (2) was inconsequential. Item (10) seems to be essentially a duplication of other items. Testimony was *83 offered in support of items (6) and (8) showing claims of $4,000 on the former and of slightly over $1,500 on the latter.

The Pacts.

Some of the facts of the case are fairly clear; others are shrouded in obscurity, which seems to be due in the case of the alleged original understanding between the parties quite as much to vagueness as to conflicts in the testimony.

Cline is a general contractor living in Frederick, who is engaged there and elsewhere in the construction business and in heavy hauling and moving. Starting with little education or resources he has built up a substantial and successful business.

Fountain Rock is a corporation which owns a twenty-one acre tract in Frederick County upon which is located a limestone quarry. It is improved by several cottages, stone bins and a lime shed. In 1949 there were on the property a hammermill used for lime and a decrepit stone-crusher. There were also two watercress ponds rented to a third party not directly involved in this controversy, and the property has an abundant supply of water.

In 1946, Mr. John W. Quynn became the principal stockholder of Fountain Rock. He owns 2001 of its 2002 outstanding shares and his son owns the other share. In 1949 Quynn was Secretary, Treasurer and General Manager of Fountain Rock and ran the business. Up to that time he had used the quarry for the production of lime. He had not engaged in the stone business except to the limited extent of selling surplus stone which was a by-product of the lime business. Fountain Rock was not in a position to enter into the stone business on a competitive basis because it lacked an adequate stone-crusher. It likewise lacked the large platform scales which are necessary for weighing stone.

In 1949 Fountain Rock had 300 tons of lime on hand, which was enough to supply its trade for about a year and a half, or possibly longer. A good deal of road construction work was developing in the area, and Quynn wanted to get the benefit of it, but he was in poor health and his Company apparently lacked capital with which to buy the needed equip *84 ment. Quynn would have liked to sell the Fountain Rode quarry at a price satisfactory to himself, or failing that, to find someone who could and would use the Fountain Rock quarry and supply the adequate stone-crushing equipment.

Cline was interested in getting stone for the same type of business that Quynn wanted to get into. He and Quynn had known each other for some time and had submitted a joint bid on a project in 1948, and Cline had bought from Fountain Rock surplus stone left over from its lime-kiln operations.

Quynn learned in 1948 or 1949 that Cline was negotiating for a small quarry owned by someone else and attempted to sell Cline the Fountain Rock quarry. This effort was not successful, but the negotiations led to some sort of agreement with regard to Cline’s using stone from the Fountain Rock quarry.

Quynn asserts that Cline told him in 1949 that if he (Quynn) would hold on to the quarry, which was losing money, until the end of the year, then early in 1950 when Cline would not be so busy, he would put in a stone crusher at Fountain Rock and they would go in business together, which Quynn understood to be on a “fifty-fifty” basis. This is now described vas a joint adventure agreement between Cline and Fountain Rock. A partnership was evidently the kind of thing which Quynn had in mind, but he believed that because Fountain Rock was a corporation it could not be a partner.

At this point obscurity descends over the facts. The precise terms of the joint adventure agreement are not shown. Quynn claims that Cline and Fountain Rock were to divide the profits evenly, but no basis is shown upon which the profits were to be computed. The one contract upon which Fountain Rock bases a claim was the contract between Cline and Conduit for rip-rap.

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Bluebook (online)
122 A.2d 449, 210 Md. 78, 1956 Md. LEXIS 442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cline-v-fountain-rock-lime-brick-co-md-1956.