Coos Bay R. R. v. Nosler

48 P. 361, 30 Or. 547, 1897 Ore. LEXIS 163
CourtOregon Supreme Court
DecidedApril 5, 1897
StatusPublished
Cited by8 cases

This text of 48 P. 361 (Coos Bay R. R. v. Nosler) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coos Bay R. R. v. Nosler, 48 P. 361, 30 Or. 547, 1897 Ore. LEXIS 163 (Or. 1897).

Opinion

Mr. Justice Wolverton,

after making the foregoing statement of the facts, delivered the opinion, of the court.

A solution of the most important questions arising in this case depends upon the proper construction of the subsidy agreement as modified. The purpose of the action is to recover under the agreement, so that, when we have determined its true meaning, the measure of plaintiff’s remedy will become manifest; so will also the remedial rights of the defendant. Whether performance is necessary to a recovery, and therefore constitutes a condition precedent, must be determined by the intention of the parties to the contract, and that intention must be ascertained from the terms of the agreement itself and the circumstances attending its execution. “It cannot depend,” says Lord Ellenborough, “on any formal arrangement of the words, but on the reason and sense of the thing as it is to be collected from the whole contract”: 1 Addison on Contracts (Abbott & Woods’ Ed.), *182; Glaholm v. Hays, 2 Mann. & Gran. 265; McLure v. Rush, 9 Dana, 65; Larimore v. Tyler, 88 Mo. 661. Certain rules have been laid down by which to ascertain and discover such intention, but it is only necessary to refer now to such as are applicable to the case before us. If, by the terms of a contract, money is to be paid by a day certain which is to or may happen before the performance of the service, or by a day certain and there is no day certain for the performance, the performance is not a condition precedent, and the party may sue for the money without averring or showing performance. In such case the parties are left to the mutual remedies on which they obviously depended: Cunningham v. Morrell, 10 Johns. 202 (6 Am. Dec. 332). But where a day is appointed for the payment of money, subsequent to the performance of that which is the consideration therefor, no action can be [552]*552maintained for the money before performance: Middlebrook v. French, 4 Conn. 1, 14; Rider v. Pond, 18 Barb. 179. And where the undertaking goes only to a part of the consideration on both sides, and the breach thereof may be compensated for in damages, it is then an independent undertaking; but if the undertakings are mutual, and go to the whole consideration, they are to be considered as conditions precedent, and there must be a performance or a tender before a recovery can be had. Mr. Parsons says of the latter rule, “that if the supposed condition covers the whole ground of the contract, and cannot be severed from it, or from any part of it, a breach of the condition is a breach of the whole contract, which gives to the other party the right of avoiding or rescinding it altogether. But where the supposed condition is distinctly separable, so that much of the contract may be performed on both sides, as though the condition were not there, it will be read as a stipulation, the breach of which only gives an action to the injured party: 2 Parsons on Contracts, *527; see also Bean v. Atwater, 10 Am. Dec. 91; Dermott v. Jones, 64 U. S. (23 How.), 220; Addison on Contracts (Abbott & Woods’ Ed.), *190. For full discussions and illustrations of the rules here alluded to, see note by Mr. Sargeant Williams to Pordage v. Cole, 1 Wm. Saund. 319 i; 2 Parsons on Contracts, 521, note (r).

Guided by these rules, we find no difficulty in arriving at a satisfactory interpretation of the agreement in question. The defendant undertook to pay plaintiff twenty-five per cent, of his subscription when the first ten miles were graded, running eastward from Marshfield; twenty per cent, when the rails were laid, etc., and the balance, or ten per cent., when the road was completed to Myrtle Point. The payment of the last installment and the completion of the road to Myrtle Point were to be concurrent events, and are therefore mutual and dependent; but, as [553]*553touching all other payments, it was contemplated, and so considered by the parties, that. they should be made prior to the completion of the road to Myrtle Point, and dependent only upon the completion of the designated sections thereof. The plaintiff has its right of action for the apportioned consideration as soon as it has performed the designated work, because it has earned it, and is entitled to it under the agreement. The stipulation for completion of the modified agreement is as follows: “Road to be finished to Myrtle Point from Marshfield before May x, 1891, and to Roseburg within a year from the time it reaches Myrtle Point.” It was also agreed that in case delay was caused by reason of the procuring of the rights of way, collection of the Coos County or Roseburg subsidy, or other just cause, that the times named should be extended a reasonable time to cover such delays. The time designated for the completion of the road to Myrtle Point must be considered as material, because the parties evidently so intended it from the first, and so treated it in the execution and acceptance of the modified agreement. The plaintiff was required to complete the road so far within the time fixed, and if it failed, it was in default; but such default would not affect any right of action which might have accrued to it theretofore under the agreement for the completion of specified portions of the work. It could not, however, recover upon the dependent undertaking, unless the defendant waived the stipulation touching such time of completion, nor could it recover upon such of the independent covenants respecting which performance had been delayed beyond the time fixed for such completion to Myrtle Point. Whatever may be the rule in equity respecting the matter, at law time within which a contract is to be performed is generally regarded as material, and no action can be maintained for recovery where performance does not take [554]*554place within the time limited: Bishop on Contracts, § 1344; Slater v. Emerson, 60 U. S. (19 How.) 238; Warren v. Bean, 6 Wis. 120; Morrison v. Wells, 48 Kan. 494 (29 Pac. 601).

The defendant stipulated what should be considered cause for delay in completing the road as required, and by this stipulation he must be bound, and if any delay has been caused by reason of procuring the rights of way, collection of Coos County or Roseburg subsidy, or other just cause, plaintiff should have the benefit of such delay, and the time thereof added to the time fixed for completion to Myrtle Point, and the result would fix the stipulated time of completion. The jury is very properly the judge of whether any and what delay had been caused by such hindrances. So that, if plaintiff has earned either •of or all the first four installments prior to the stipulated time of completion to Myrtle Point, it has its right of action accordingly, regardless of whether it has fully completed the road to that place or not, and for full compensation if it has fully performed in that particular, without reference to. its agreement to continue it to Roseburg. The full consideration having been made payable prior to the time of the stipulated completion to Roseburg, such completion must be regarded as a condition subsequent, and so must the stipulations requiring the maintenance of a depot and switch to tide water at Coquille City. This latter contemplates a continued service, and from its very nature is a condition subsequent; but the condition is such as might be enforced, and perhaps a failure to comply with it would be visited with damages; Paducah Railroad Co. v. Parks, 86 Tenn. 554 (8 S. W. 842); Chamberlain v. R. R.

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Bluebook (online)
48 P. 361, 30 Or. 547, 1897 Ore. LEXIS 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coos-bay-r-r-v-nosler-or-1897.