Farmers Union Elevator Co. v. Johnson-Sampson Construction Co.

258 P.2d 268, 174 Kan. 693, 1953 Kan. LEXIS 355
CourtSupreme Court of Kansas
DecidedJune 6, 1953
Docket38,979
StatusPublished
Cited by3 cases

This text of 258 P.2d 268 (Farmers Union Elevator Co. v. Johnson-Sampson Construction Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers Union Elevator Co. v. Johnson-Sampson Construction Co., 258 P.2d 268, 174 Kan. 693, 1953 Kan. LEXIS 355 (kan 1953).

Opinions

The opinion of the court was delivered by

Wedell, J.:

This was an action on three counts by The Farmers Union Elevator Company, a corporation, against The Johnson-[694]*694Sampson Construction Company, Incorporated, the contractor, and the The Central Surety and Insurance Corporation, to recover damages for breach of contract for the building of a grain elevator.

Defendants appeal from orders overruling their separate general demurrers to the separate counts of the petition after having unsuccessfully motioned the petition and from the overruling of their separate demurrers based on the ground several causes of action were improperly joined.

The material parts of the separate counts were:

“2. That on the 14th day of March, 1950, this plaintiff and the defendant, The Johnson-Sampson Construction Company, Inc., entered into an agreement, in writing, together with plans and specifications attached thereto and made a part thereof, of which a copy is hereto annexed and made a part hereof as fully and completely as though the same were set out herein at length, and marked Exhibit ‘A’.

“3. That plaintiff has duly fulfilled all the conditions thereof on its part to be done and performed.

“4. That the defendant, The Johnson-Sampson Construction Company, Inc., in order to secure the faithful performance of the aforementioned agreement marked Exhibit ‘A’, agreed to furnish a good and acceptable bond in the sum of seven thousand two hundred and twenty dollars assuring the plaintiff that the defendant, The Johnson-Sampson Construction Company, Inc., would promptly and faithfully perform said agreement marked Exhibit ‘A’.

“5. That on the 27th day of March, 1950, the defendants above named, executed and delivered to the plaintiff herein their bond for the faithful performance of the work provided for in the aforesaid contract marked Exhibit ‘A’, a copy of which said bond, together with all endorsements thereon is hereto attached, made a part hereof as fully and completely as though the same were set out herein at length, and marked Exhibit ‘B’.

“6. That among other tilings said performance bond marked Exhibit ‘B’ provided as follows:

“‘Whenever Contractor (Johnson-Sampson Construction Company, Inc.) shall be, and be declared by Owner (plaintiff) to be, in default under the contract, (the owner having performed owner’s obligations thereunder), the Surety (The Central Surety and Insurance Corporation) may promptly remedy the default, or shall promptly

“ ‘(1) Complete the contract in accordance with its terms and conditions, or

“‘(2) Obtain a bid or bids for submission to owner for completing the contract in accordance with its terms and conditions, and upon determination by owner and surety of the lowest responsible bidder, arrange for a contract between such bidder and owner and make available as work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price; but not exceeding, including other costs and damages for which the surety may be liable hereunder, the amount set forth in the first paragraph ($7220). The term [695]*695“balance of the contract price”, as used in this paragraph, shall mean the total amount payable by Owner to Contractor under the contract and any amendments thereto, less the amount properly paid by Owner to Contractor.’

“7. That the defendant, The Johnson-Sampson Construction Company, Inc., did not fulfill said contract on its part; but on the contrary, erected said elevator building in an unskillful and negligent a manner and of so unsuitable materials, the exact character, nature and kind of which are unknown to plaintiff and for that reason not set out herein in particular; that shortly after its completion the walls of the elevator pit, floor and leg became and are leaky to subsurface waters, to such an extent as to prohibit the use of the same for the purposes intended by the contract marked Exhibit ‘A’, to the damage of the plaintiff in the sum of $7,220.00.

“Second Cause of Action

“The plaintiff for its second cause of action against the defendants and each of them, alleges:

“1. That it makes all of that part of its first cause of action, which is not inconsistent with this second cause of action, a part hereof as fully and completely as though the same were again set out herein at length.

“2. That on or about August 21, 1950, defendant, the Johnson-Sampson Construction Company, Inc., represented to the plaintiff that said elevator building described in Exhibit ‘A’ attached hereto was completed and, the plaintiff thereafter and on August 26, 1950, made final payment under the terms of said Exhibit ‘A’. That thereafter in the summer of 1951, the exact date being unknown, while said elevator was in use in the ordinary, usual and customary manner, the said elevator pit commenced to leak from penetration of subsurface water and as a direct result of said leakage of water in said pit, through no fault or negligence of plaintiff, the plaintiff was damaged in loss of wheat by reason of dockage per bushel of wet wheat at terminal market where sold, as follows to-wit: [Here are set forth the amounts of dockage claimed for grain sold between September 18, 1951, and February 27, 1952, in the total sum of $8,131.46.] which said loss aforesaid in the amount of $8,-131.46 plaintiff claims as further damages herein.

“3. That because of said leakage of water as aforesaid, plaintiff has been unable to use said elevator for the storage of wheat in the usual, ordinary and customary manner, that as a direct result thereof, the plaintiff has been forced to store its wheat at terminal elevators, which said storage to date hereof has cost plaintiff the sum of $1,237.35, all of which plaintiff claims as further damages herein.

“Third Cause of Action

“The plaintiff for its thjrd cause of action against the defendants and each of them, alleges:

“1. That it makes all of those parts of its first and second cause of action, which are not inconsistent with this third cause of action, a part hereof, as fully and completely as though the same were again set out herein at length.

“2. That there is now in said elevator 17,043 bushels of wheat, all of which have been damaged by being wet as a direct result of said leaking elevator pit and as a direct result thereof plaintiff has and will suffer damages in [696]*696dockage at the rate of I5<f per bushel or a total damage by reason thereof, of $2,556.45.”

The prayer was for the recovery of $7,220.00, $8,131.46 and $2,-556.45 together with interest and costs.

For present purposes it is unnecessary to set forth the full contract between the owner and contractor together with the detailed plans and specifications or to copy in full the performance bond. We shall, however, set forth such portions thereof as are involved in the present contentions of the parties. Such parts of the contract are:

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Related

In Re Estate of Manweiler
342 P.2d 730 (Supreme Court of Kansas, 1959)
Clark v. Hildreth
293 P.2d 989 (Supreme Court of Kansas, 1956)
Farmers Union Elevator Co. v. Johnson-Sampson Construction Co.
258 P.2d 268 (Supreme Court of Kansas, 1953)

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Bluebook (online)
258 P.2d 268, 174 Kan. 693, 1953 Kan. LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-union-elevator-co-v-johnson-sampson-construction-co-kan-1953.