Dravo Contracting Co. v. James Rees & Sons Co.

140 A. 148, 291 Pa. 387, 1927 Pa. LEXIS 407
CourtSupreme Court of Pennsylvania
DecidedOctober 6, 1927
DocketAppeal, 125
StatusPublished
Cited by26 cases

This text of 140 A. 148 (Dravo Contracting Co. v. James Rees & Sons Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dravo Contracting Co. v. James Rees & Sons Co., 140 A. 148, 291 Pa. 387, 1927 Pa. LEXIS 407 (Pa. 1927).

Opinion

Opinion by

Mr. Justice Walling,

On April 13, 1920, the Dravo Contracting Company, a New Jersey Corporation, the legal plaintiff, entered into a written contract with James Rees & Sons Company, a Pennsylvania corporation, defendant, by which the former undertook to furnish material and construct for the latter two steamboat hulls of the best open *390 hearth steel, galvanized, for the sum of $68,310. Both parties were engaged in ship building at Pittsburgh and the hulls were to be constructed according to specifications, etc., attached to the contract; one to be finished within five and one-half months and the other within six and one-half months from date of contract. On October 20, of the same year, neither of the hulls having been finished or delivered, defendant ordered plaintiff to quit work under the contract. Thereafter plaintiff brought this suit for damages for alleged breach of contract and recovered a verdict of $33,756.70, and, from judgment entered thereon, defendant has appealed.

The case turned almost entirely on disputed questions of fact and we find nothing in the record requiring a new trial. It was somewhat complicated by the fact that on the same day (April 13, 1920) the plaintiff entered into another written contract by which it agreed to construct eight steel barges for the defendant. After some delay, at the instance of defendant, the latter contract was completed and the barges accepted and paid for, except an item of interest to which we refer later. The barges contract was silent on the kind of steel to be used and each contract provided for partial payments on monthly estimates to be submitted as the work progressed. Defendant contended that there was an outside understanding that the barges were also to be of open hearth steel. In any event, plaintiff used annealed Bessemer steel, at least in part, in constructing the barges, and as above stated they were accepted by defendant.

It was plaintiff’s contention that shortly after the date of the contracts its manager called defendant’s attention to the great difficulty in obtaining open hearth steel and that defendant’s general manager agreed verbally to such a modification of the hulls contract as to permit the use of Bessemer steel, in place of the open hearth steel specified. Plaintiff’s president and manager both testified to this verbal modification, while defend *391 ant’s general manager as positively stated the contrary, and testified he had no' knowledge of Bessemer steel being used under either contract until over a year later. His testimony was somewhat weakened by the fact that in his affidavit of defense, as originally filed, he states that application, as claimed, was made to him for leave to use f'e Bessemer steel but avers he did not assent thereto. In an amended affidavit of defense he denies such application and says the statement in the original was a mistake. The monthly statements submitted as to the hulls contract are silent as to the kind of steel being used, but the first statement as to the barges, submitted June 30, 1920, discloses the use of Bessemer steel. These steamboats and barges were intended for use on the Magdalena Eiver in South America and evidence for plaintiff tended to show that for such purpose Bessemer steel, when softened by proper annealing, was equal to the best open hearth steel. This was contradicted on behalf of the defense. A considerable part of the steel used for the hulls was Bessemer steel and the trial judge instructed the jury, in effect, that the burden was on plaintiff to prove, by the weight of the evidence, a modification of the contract permitting such use, and unless it had done so there could be no recovery. That the trial judge emphasized the right of the parties to so modify the contract was not error.

The defendant was building the steamboats for Angel & Co., Inc., of New York, for its South American customers, who, because of their country’s financial difficulties, ordered the construction stopped. That was the reason defendant gave plaintiff for stopping work under the contract; but in answer to this suit defendant averred a failure of plaintiff to complete the work within the specified time. True, under the contract one hull should have been finished some three weeks before the countermand and the other within two weeks thereafter, but this was not done. Treating time as of the essence of the contract, without deciding whether it *392 was so, there was ample to justify the jury in finding defendant had waived a strict compliance therewith. On August 10, 1920, defendant’s general manager wrote plaintiff complaining of the delay in getting the work started and saying, inter alia, “You are going to be far behind on the boats,” and expressing regret therefor, but making no suggestion that the work must be completed on the exact dates, or otherwise the contract would be breached. Then defendant permitted plaintiff to continue the work for three weeks after the time for delivery of the first hull and stopped it for an entirely different reason. Thereafter defendant requested a statement as to amount of work done, expenses incurred, etc., and, according to plaintiff’s evidence, asked that the statement include profits on the job. Defendant’s conduct was inconsistent with the contention that plaintiff had forfeited its rights by reason of the time limit. Having allowed the stated time to go by, neither party could suddenly terminate the contract without giving the other an opportunity to perform. See Riddle Co. v. Taubel, 277 Pa. 95; Hatton v. Johnson, 83 Pa. 219; Irvin v. Bleakley, 67 Pa. 21; McGlinn v. Jackson, 86 Pa. Superior Ct. 562; Dunham, Inc., v. Nemitz, 82 Pa. Superior Ct. 382; Burchfield v. Alpha Process Co., 45 Pa. Superior Ct. 254. Under all the facts in the case we are not persuaded that the defendant was prejudiced by the delay complained of. Permitting plaintiff to go on with the work after the time had expired would justify the finding of a waiver: Brackin et al. v. Welton Eng. Co., 283 Pa. 91; and see Welch v. Disk, 236 Pa. 155; Dunham, Inc., v. Nemitz, supra; 13 C. J. 689. No just criticism can be made of the instructions relating to damages. As there stated, plaintiff was entitled to recover for overhead charges in addition to the labor actually performed in connection with the work done under the contract (Lytle, Campbell & Co. v. Somers, F. & T. Co., 276 Pa. 109), also for such actual profit as plaintiff would have received on completion thereof: *393 Bates v. Carter Construction Co., 255 Pa. 200; Clyde Coal Co. v. P. & L. E. R. R. Co., 226 Pa. 391; Wilson v. Wernwag, 217 Pa. 82; United States v. Behan, 110 U. S. 338, and other cases. Furthermore, the 4th clause of sec. 64 of the Sales Act of May 19, 1915, P. L. 543, 562, provides that, where the purchaser repudiates the contract before delivery, the seller shall be entitled to the profit he would have made had the contract been fully performed.

Complaint, is made that the charge as a whole was unduly favorable to the plaintiff. This we have carefully considered but are not satisfied the complaint is well founded. While it dwells at considerable length on plaintiff’s contentions and proofs it does not ignore those of the defendant.

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Bluebook (online)
140 A. 148, 291 Pa. 387, 1927 Pa. LEXIS 407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dravo-contracting-co-v-james-rees-sons-co-pa-1927.