Colorado Yule Marble Co. v. Collins

230 F. 78, 144 C.C.A. 376, 1915 U.S. App. LEXIS 1533
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 1, 1915
DocketNo. 4226
StatusPublished
Cited by12 cases

This text of 230 F. 78 (Colorado Yule Marble Co. v. Collins) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colorado Yule Marble Co. v. Collins, 230 F. 78, 144 C.C.A. 376, 1915 U.S. App. LEXIS 1533 (8th Cir. 1915).

Opinion

SMITH, Circuit Judge.

The plaintiff in error, the Colorado Yule Marble Company, hereafter called the defendant, is a corporation organized under the laws of Colorado. The Nebraska Mausoleum Company, of Omaha, Neb., had let to the Colorado Yule Marble Company as architects, marble dealers, etc., a contract to erect a 600-crypt mausoleum with chapel at West Dawn Cemetery at Omaha. The Colorado Yule Marble Company sublet a portion of the contract to the defendant in error, George J. S. Collins, hereafter called the plaintiff, for $40,000. The latter contract was in writing, and contained, among others, the following stipulations:

“Tire said Collins hereby agrees to commence the work at once and prosecute the same to complete finish to the entire satisfaction of the said C. Y. M. Co. with all possible dispatch apd under the direction of the superintendent in charge, and to furnish a full sufficiency of labor and skilled mechanics at all times when it is possible to proceed. The said Collins further agrees that all materials used shall he the best quality of their respective kinds, that all work performed shall be executed in the most skillful and workmanlike manner, and the said Collins further covenants and agrees that the bond, furnished in amount S20,000 shall be security for the satisfactory performance and fulfillment of the contract. * * * Payments to be made monthly upon estimates by the aforesaid superintendent of the said C. Y. M. Co., provided, however, that ail work up to the estimated and claimed amount is satisfactory to the said C. Y. M. Co.”

Tbe contract was signed August 24, 1912. That was Saturday. No bond was ever given as provided in the contract, except as hereafter explained, but on Monday, August 26, 1912, Mr. Collins commenced work under the contract and worked steadily until October 7, 1912. On Saturday, October 5th, Mr. Savage, an agent of the defendant, told Mr. Collins to quit work; that they were trying to reorganize both the Mausoleum Company and the Marble Company. Mr. Collins said they were then in the middle of one of the bays, and lie thought it advisable to finish that work before he stopped, and the completion of that took until Monday, October 7th. Up to that time the total work done was of the value of $1,085.37, which was covered by two certificates of the superintendent of the Marble Company, the first for $835.37 and the second for the balance. No part of these estimates has ever been paid. On November 25, 1912, plaintiff commenced suit in the district court of Douglas county, Nob. His petition was in two counts. In the first he sought to recover $1,085.38. In the second he sought to recover $6,000 lor profits he would have made if allowed to go on with the work, and if the same was paid for under the contract. On the same day he secured an attachment, which was served by garnishing several parties. Upon application of defendant the case was removed to the United States District Court for Nebraska, and there defendant answered. The case was tried to a jury, who found for plaintiff in the sum of $7,172.10, and judgment [80]*80was rendered therefor. Thereupon the defendant sued out a writ of error to this court.

In its argument the Marble Company says:

“In its assignment ,of errors (page 85), on bringing tills case to tlris court for review, the Afarblé Company relies upon the following propositions, which are indicated and preserved in various ways in the record:
“I. The action was prematurely brought for the recovery of the total profits on the contract, for the reason that the evidence wholly fails to show a total, anticipatory breach of the contract, such as would justify the bringing of such an action.
“II. Before the plaintiff could bring an action for such total breach, it would be necessary for him to have tendered full performance on his part, including the giving of the bond, which, on his own showing, had been only temporarily waived, but not entirely eliminated from the agreement.
“III. The plaintiff, having suspended work at the request of the defendant for the purpose of enabling some difficulties to be adjusted, could not thereafter put the defendant in default as for a breach of the contract, without giving notice that unless he was permitted to resume the work he would treat his prevention as a breach.'
“IV. Error in the giving of instructions, even on the theory of the trial court. These will be pointed out in detail.”

[1] As bearing upon the first three of these points it should be borne in mind that this was a partially executed contract, and a number of the authorities agree that there is a difference between contracts wholly executory and those executed in whole or in part. But in Roehm v. Horst, 178 U. S. 1, 20 Sup. Ct. 780, 44 L. Ed. 953, the Supreme Court after a most exhaustive consideration of both English and American authorities held substantially that there was no difference between purely executory and partly executed contracts, and that where one party to a contract clearly and positively renounced his contract before any part of it was executed a cause of action for the loss of profits accrued at once to the other party. That opinion is quite conclusive, so far as it goes, upon this court, as it was upon the District Court.

In Elliott on Contracts it is said:

“Sec. 2028. Renunciation Anticipatory Breach Controlling American Rule. — Tbe American courts, witb almost practical unanimity, adopt the rule of the English courts and hold that an unqualified and positive refusal to perform a contract before performance is due may be regarded as a complete breach of the contract, where the renunciation goes to the whole contract, and the injured party may bring his action at once.”

This is supported in a note by a vast number of authorities. There has been some confusion on this subject by reason of the use of the term “rescission” in connection therewith. If there be a complete rescission of a partially executed contract there is no cause of action on the contract, but the only remedy of the party who has not been in default is a suit upon a quantum meruit. But the confusion between a breach of contract and a mutual rescission results in a confusion as to the remedy.

[2] It is true that in section 2029 of Elliott on Contracts it is said that Massachusetts, North Dakota, Maine, and Nebraska have in varying measure dissented from the English and American doctrine, and it is also true that this contract was a Nebraska contract and was there[81]*81to be performed.* But this can be of no controlling weight with us. This was a case not arising under the statutes of Nebraska, but under the common law and the rules of general jurisprudence. The federal courts accept the interpretation put by the courts of a state upon its own Constitution and statutes, but do not follow it as to the common law or general jurisprudence. Baltimore & Ohio Railroad Co. v. Baugh, 149 U. S. 368, 13 Sup. Ct. 914, 37 L. Ed. 772; Gardner v. Michigan Central Railroad Co., 150 U. S. 349, 14 Sup. Ct. 140, 37 E. Ed. 1107; Chicago, Milwaukee & St. Paul Ry. Co. v.

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

Related

State v. Eckstein
395 N.W.2d 515 (Nebraska Supreme Court, 1986)
Teeter v. Mid-West Enterprise Co.
1935 OK 1174 (Supreme Court of Oklahoma, 1935)
New York Life Ins. v. Yerys
80 F.2d 264 (Fourth Circuit, 1935)
Barnebey v. Barron G. Collier, Inc.
65 F.2d 864 (Eighth Circuit, 1933)
Simpson v. Occidental Building & Loan Ass'n
19 P.2d 958 (Wyoming Supreme Court, 1933)
Hiatt Investment Co. v. Buehler
16 S.W.2d 219 (Missouri Court of Appeals, 1929)
Northwestern Terra Cotta Co. v. Caldwell
234 F. 491 (Eighth Circuit, 1916)
Cooper v. Jewett
233 F. 618 (Eighth Circuit, 1916)
Kinser v. United States
231 F. 856 (Eighth Circuit, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
230 F. 78, 144 C.C.A. 376, 1915 U.S. App. LEXIS 1533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colorado-yule-marble-co-v-collins-ca8-1915.