Concrete Construction & Contracting Co. v. Pratt

52 So. 153, 125 La. 1046, 1910 La. LEXIS 590
CourtSupreme Court of Louisiana
DecidedMarch 28, 1910
DocketNo. 17,698
StatusPublished
Cited by2 cases

This text of 52 So. 153 (Concrete Construction & Contracting Co. v. Pratt) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Concrete Construction & Contracting Co. v. Pratt, 52 So. 153, 125 La. 1046, 1910 La. LEXIS 590 (La. 1910).

Opinion

Statement of the Case.

MONROE, J.

On August 12, 1907, plaintiff (being a company under the name of which John F. McCoy appears to conduct his business) and defendant entered into a written contract reading, as follows:

“This agreement, this day made and entered into between John F. McCoy and the Concrete Construction & Contracting Company, both of the city of New Orleans, parties of the first part, and George K. Pratt, of the city of New Orleans, party of the second part, witnesseth: That, whereas, said Concrete Construction & Contracting Company has bid on certain repaving and surface drainage work, and is about to enter into contracts with the city of New Orleans as follows:
Subsurface drainage contract on Magazine street, from Canal to Julia, about................... $32,690 00
Repaving contract on Magazine street, from Canal to Julia, about 30,860 50
Subsurface drainage contract on Gravier street, from Canal to Delta, about...................... 25,620 80
Repaving contract on Gravier, from Camp to Delta, about........... 12,000 00
Subsurface drainage contract on Common street, from Magazine to Front, about................... 16,558 00
Repaving contract on Common street, from Magazine to Front, about ........................ 6,400 00
$124,130 30
“And, whereas, under authority of a resolution of the board of directors of the said Concrete Construction & Contracting' Company, adopted Majr 24, 1907, the said John F. McCoy, has entered into an agreement with the said George K. Pratt, whereby in consideration of the payment to him of one half of the profits which may be derived from said contracts, the said George K. Pratt will finance the said undertaking and advance such moneys as may be necessary for the carrying on of the same.
“Now, therefore, in consideration of the foregoing, the parties of the first and second parts,, severally, bind and obligate themselves as follows:
“Upon the execution of this agreement, the several contracts above referred to, as well as all certificates and payments in connection with the same, shall be transferred and assigned to-said George K. Pratt, or to his order, or to such bank as he may select and 'designate, as subrogee.
“Upon completion of each of the aforesaid six contracts, accounts shall be audited and the net profit or loss upon the same shall be definitely fixed and determined by the parties to this agreement, reimbursement being firsi made of all amounts advanced, and, in so doing, the same shall be taken from the proceeds derived from the property owner’s portion of certificates when issued and collected, and the balance, if any, out of the city’s portion of said certificates, when sold, as hereinafter provided, and written acknowledgment shall be given by and to both parties to this agreement as to the existing conditions after auditing. All certificates and the cash derived from the sale or collection of the same shall remain in the control of the said George K. Pratt until after the completion' and auditing of all said contracts, to be used' by him exclusively in making payments or in securing funds for the carrying on of said contracts and the work upon the same, or as collateral in connection with the bond required by the city of New Orleans.
“The said George K. Pratt shall have the right, in his discretion, to pledge any and all certificates for advances necessary to carry out this agreement, and he shall further have the right to sell a sufficient amount of certificates, representing the city’s portion of payments under said contracts, provided that sufficient funds are not' derived from the collection of the property holders certificates for advances made by him; provided, further, that in selling the city’s portion of said certificates, both parties to this contract do agree as to the price, or, in the event of disagreement, then, he give written notice to the parties of the first part, designating the particular certificates of the city’s portion that he proposes to sell, the price of the same, and the purpose of said sale, and that said parties of the first part, after such notification, do fail within sixty days to procure and produce a bona fide purchaser for said city’s portion of said certificates at a higher price.
“All material accounts and labor rolls and other ‘necessary incidentals’ shall be charged to, and as, expenses.
“In consideration of the time and efforts of the said John F. McCoy, as general manager, being given to the carrying' on of the aforesaid contracts and their rapid completion, the salaries of the officers of the Concrete Construction [1049]*1049.& Contracting Company, and bookkeeper and office expenses, as may be designated by the ■said John F. McCoy, shall be advanced to him monthly for account of said company by the party of the second part during the running ■of the said contracts, and until the final completion of the same; provided, however, that the total amount so advanced shall be no more or less than the sum of five hundred dollars per month, and that it shall be reimbursed to said party of the second part, and may be taken by him out of the profit of the parties of the first part, and may be adjusted in the regular auditing following the completion of each contract; and, provided further, that said advances shall in no event be made for a longer perio4 than twelve months.
“The said parties of the first part shall furnish the said George K. Pratt their notes for advances, and for pay rolls, materials and incidental accounts and salaries, etc., monthly, which he may discount or use as he may deem proper, returning the same when, after auditing, it shall appear that sufficient moneys have been realized from the proceeds of said contracts to meet and pay all expense accounts and indebtedness of said Concrete 'Construction & Contracting Company.
“In the event of legal services being required in connection with any of the contracts aforesaid, the party of the second part shall have the right of naming and employing the attorney-at-law who shall be engaged for such purpose.
“The party of the second part shall also have the right to appoint one man to act as timekeeper, paymaster and material clerk, at a salary of seventy dollars per month, whose duties shall be the paying of the men employed, receiving of material and the keeping of the men’s time. He shall have no authority to hire or discharge and shall be under the supervision of the manager, John F. McCoy, by whom all bills and pay rolls must be approved before payment. The salary of said appointee shall not be paid from the five hundred dollars per month stipulated for above as salaries and office expenses, but shall be charged to the expense account, and said John F. McCoy, shall have the right to discharge said employé if unsatisfactory, and shall, in such case, notify the party of the second part to replace with another appointee.
“Itemized reports of materials received, material used and cost of labor and all other expenses will be furnished the party of the second part daily, duly signed by manager and timekeeper.

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Related

Ansley v. Concrete Construction & Contracting Co.
77 So. 774 (Supreme Court of Louisiana, 1917)
Pratt v. McCoy
54 So. 1012 (Supreme Court of Louisiana, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
52 So. 153, 125 La. 1046, 1910 La. LEXIS 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/concrete-construction-contracting-co-v-pratt-la-1910.