Dodge v. Harbor Boat Building Co.

222 P.2d 697, 99 Cal. App. 2d 782, 1950 Cal. App. LEXIS 1782
CourtCalifornia Court of Appeal
DecidedOctober 9, 1950
DocketCiv. 17507
StatusPublished
Cited by6 cases

This text of 222 P.2d 697 (Dodge v. Harbor Boat Building Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dodge v. Harbor Boat Building Co., 222 P.2d 697, 99 Cal. App. 2d 782, 1950 Cal. App. LEXIS 1782 (Cal. Ct. App. 1950).

Opinion

SHINN, P. J.

Defendant, Harbor Boat Building Co., a corporation, appeals from a judgment for $97,459.03 together with costs in favor of the plaintiff, William Wallace Dodge.

Plaintiff, who is the assignee of National Ship Service Co., Inc., a corporation (hereinafter referred to as National Ship), sued to recover for work, labor and services performed, and materials furnished by his assignor.

Plaintiff’s amended complaint contained two causes of action: the first sought recovery of $147,782.21 as the reasonable value of work, labor and materials furnished at the request of defendant; the second was a common count based upon an account stated for the same amount; a third count, added by amendment, was predicated upon the ground that defendant had received $147,782.21 from the Navy for work and materials furnished by National Ship. Defendant Harbor Boat Building Co. (hereinafter referred to as Harbor Boat), denied the material allegations of the first, second and third causes of action, claimed by way of offset and by cross-complaint that plaintiff’s assignor was indebted to it in the sum of $12,540.97, and sought damages in the sum of $38,250 by reason of the careless and negligent manner in which some of the work had been done. The trial court found that the reasonable value of the services and material furnished by National Ship was $110,000, that Harbor Boat was entitled to an offset of $12,540.97 for services which it had furnished National Ship in connection with the work done by National Ship, and that, as a result, plaintiff, as assignee of National Ship, was entitled to judgment for $97,459.03, together with costs. The sum of money sued for constituted compensation for work done and material furnished in painting, cleaning, refurbishing, repairing and renovating two vessels, the U.S.S. Jaceard [Jacquard] (also known as DE-355) and the U.S.S. Aeree (also known as DE-356) which belonged to the United States government. The type of work done and materials furnished by plaintiff’s assignor and the defendant is a process of preservation for inactivation, or what is known as “putting the vessels in moth balls.” Harbor Boat and National Ship are both engaged in ship building and ship repair work in the Los Angeles Harbor area.

*785 In May, 1946, representatives of National Ship met with representatives of Harbor Boat concerning the proposed preservation work to be done on Navy ships in Los Angeles Harbor. As an outgrowth of this meeting, Harbor Boat, after representatives of both concerns had inspected the work being done by the Navy in San Diego and the two vessels (the subject of this litigation) in Los Angeles Harbor on which such work was to be done, entered its bid on the work to be performed. After the inspection of the ships and prior to the entering of the bid, representatives of Harbor Boat and National Ship went over the specifications for the proposed work, National Ship agreed to do specified portions of the work involved and prepared an estimate of the cost of the work proposed to be done by it. The work to be done by National Ship consisted, in the main, of removing paint and rust, cleaning and painting equipment and the vessels themselves. The estimates prepared by National Ship with reference to the work to be done by it for Harbor Boat in the moth-balling process totaled $24,195 for each ship, and were accepted by Harbor Boat in its purchase orders of June 12, 1946. Harbor Boat’s bid was accepted by the Navy and it was to do the preservation work on the Jaccard for the sum of $73,855 (this was later revised to read $74,284.64) and the work on the Aeree for $74,745 (which was later revised to read $75,174.64).

In the purchase orders, signed by Harbor Boat and transmitted to National Ship, it was provided that National Ship was to “Accomplish work in accordance with the following U. S. N. Instruction Sheets. All work to be done to the satisfaction of the AIM (Assistant Industrial Manager) Resident Inspector and to be completed by the stipulated availability date: ...” and that “It is understood that there may be changes in specifications but that no increase in price will be made unless the change is considered of a major nature and a Change Order issued by A.I.M.”

The record shows that it became necessary for National Ship to perform a great deal of work in addition to that specified in its estimate to Harbor Boat and in addition to that provided for in the purchase orders signed by Harbor Boat. This additional work was necessitated by several factors: modifications and corrections in the Navy’s instruction manual; express request byr Harbor Boat and demands of inspectors for work not originally specified; the continuous *786 rusting of surfaces because the ships were not maintained by the Navy and Harbor Boat in the proper state of dehumidification during the progress of the work; lack of facilities and equipment which were to have been furnished by the Navy and Harbor Boat; the necessary, but unprovided for, dismantling of many parts in order that such parts might be cleaned and painted, and misinterpretation of instruction sheets by a subsequent Naval Inspector who required certain work to be redone after its approval by a prior inspector. The record substantiates plaintiff’s argument that the preservation of ships for inactivation was something new for the Navy and a process which was, as yet, in the trial and error stage. In other words, it was, at the outset, impossible to ascertain just how much work would have to be done or the method by which it was to be accomplished. It appears that the Navy specifications and instructions were changed from time to time during the course of the work, and that on September 4, 1946, the Navy sent a communication to all companies engaged in the inactivation program in the Los Angeles Harbor which read (with the deletion of the names and addresses of the companies to which it was sent) as follows: “Subj; Change orders for Vessells Undergoing Preservation. 1. Notwithstanding any policy agreements or any phrases in article 5 of the basic job orders, change orders will he issued for those vessels upon which changes in the work have resulted hy virtue of modifications and corrections to the preservation instruction manual issued for hid purposes. Contractors are advised to prepare their estimates, as official change orders will he issued at an early date, /s/ D. L. Carroll, Jr. Asst. Industrial Mgr.” (Emphasis added.)

On September 6, 1946, the Navy issued change orders covering the work being done on the two ships here involved. The orders, which were identical, read in part as follows: “1. This Change Order No. 332-A is hereby issued to cover all corrections and modifications to the Preservation Instruction Manual prepared for hid purposes. This includes all corrections and modifications made prior to this date. (Emphasis added.)

“2. In submitting your estimates of any increase or decrease in cost, it is requested that you enumerate each modification, or correction, with its cost, referencing the page number of the Preservation Instruction Manual. . . . These estimates, broken down by labor, material, overhead, and profit should be submitted in the form of an enclosure to a forwarding letter.”

*787

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Cite This Page — Counsel Stack

Bluebook (online)
222 P.2d 697, 99 Cal. App. 2d 782, 1950 Cal. App. LEXIS 1782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dodge-v-harbor-boat-building-co-calctapp-1950.