Fisher Electric Co. v. Bath Iron Works

74 N.W. 493, 116 Mich. 293, 1898 Mich. LEXIS 683
CourtMichigan Supreme Court
DecidedMarch 15, 1898
StatusPublished
Cited by6 cases

This text of 74 N.W. 493 (Fisher Electric Co. v. Bath Iron Works) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fisher Electric Co. v. Bath Iron Works, 74 N.W. 493, 116 Mich. 293, 1898 Mich. LEXIS 683 (Mich. 1898).

Opinion

Grant, C. J.

(after stating the facts). 1. Assuming that there was delay on the part of the inspector to furnish to plaintiff the drawings, specifications, and other information mentioned in the contract, is the defendant liable for such default? It is urged by counsel for the defendant that plaintiff accepted all the chances of delay on the part of the inspector, and thereby relieved it from. any duty in regard to this information. There was no contractual relation between plaintiff and the government. The contract for the construction of the boats was be[298]*298tween defendant and the government. Defendant had agreed with the government to furnish these boats with electric light plants. Whether defendant installed them itself or let the contract was immaterial to the' government. The agreement to furnish these drawings, etc., was made with the defendant, and the plaintiff could look to it, and no one else, for the failure to furnish them. The original specifications were furnished to plaintiff, and formed the basis of the contract. The inspector represented the defendant, not the plaintiff. The court was therefore correct in holding the defendant liable for any damages which resulted from delay in furnishing the drawings, etc.

2. During the period from the date of the contract, in 1891, to its completion, in 1893, various improvements had been made in electrical apparatus, and plaintiff furnished some more expensive articles than those commonly known and in use at the time the contract was made. The court instructed the jury that the contract was made with reference to fixtures and appliances best known and in common use at the time the contract was made, and that, if plaintiff was required to and did furnish more expensive articles than those which were in common use at that date, it was entitled to recover for them. The correctness of this instruction depends upon the construction to be given to the term “plant,” used in the specifications; under the title “Plant.” Houston’s Electrical Dictionary defines the term as follows:

“Plant — -a word sometimes used for installation, or for the apparatus required to carry on any manufacturing operation. An electric plant includes the steam engines or other prime motors, the generating dynamo or dynamos, the lamps and other electro-receptive devices, and the circuits connected therewith.”

It is insisted that the term in this contract means a plant as above defined. Defendant’s position is based upon that clause of the contract which' says:

[299]*299“ All working parts of the plant * * * must be the most compact, the lightest, and best adapted for marine .work, particularly when at sea, of any that can be obtained at the time it is placed in the ship.”

It is insisted that this clause includes everything in every part of the boats which is covered by the numerous specifications. But, clearly, this language is restricted to the plant as defined in the subdivision in which it is used. The parties have there seen fit to define the plant to which this language applies, and have confined it to two engines and two dynamos. All the language of this subdivision is peculiarly appropriate to the plant as described in the first sentence. The mere fact that the term “plant” is used in its broader sense in other subdivisions of the specifications does not affect the construction of the term as restricted by the subdivision in question. The court was therefore correct in holding that the plant meant the engines and dynamos.

3. All labor charges for overtime were made by the plaintiff at $1.50 per hour, or $15 a day. For most of this work plaintiff actually paid $26.50 a week. Upon this point Mr. Fisher testified as follows :

‘ ‘ The labor charge was agreed upon by Mr. Hanscom and myself at $1.50 per hour. I had the conversation fixing the charge for labor at $1.50 per hour with Mr. Hanscom, the superintendent of the defendant company, in December, 1891.
‘ ‘ Q. What was that conversation ?
“A. The conversation was with reference to the extras, and Mr. Hanscom said: ‘Of course, we expect to make a good deal of money out of this extra work. The government expects to be soaked on it, and we will help you get all you can for it — for anything extra.
“Q. What was said about the price ?
“A. I think that I told him at that time that we should charge on all labor at the rate of $15 a day for extra work.
“Q. And this deal was made in accordance with this arrangement ?'
“A. Yes, sir.”

On cross-examination he testified:

[300]*300ltQ. You had a positive agreement with Hanscom to allow you $15 a day?
“A. Yes, sir.
“Q. That was upon the understanding that the government would be soaked ?
“A. Yes, sir.”

The circuit judge instructed the jury that, if the parties entered into an agreement to charge an excessive price to the government, or “soak” it, such an agreement was against public policy, and void; and added:

“But, if you believe that the agreement between Fisher and Hanscom was, as counsel for the plaintiff claims, that the United States government expected to be ‘soaked’ in the matter, and that the agreement was that the Bath Iron Works would allow $1.50 an hour, if that agreement was made, then it is binding; and if you believe from the testimony that such an agreement was made between Hanscom and Fisher, that settles the question of extra labor, and you must allow $1.50 an hour.”

.The charge is grossly excessive. Under the instructions, plaintiff was permitted to recover about four times what the actual damages were. As an illustration, one Moag, plaintiff’s employé, who was paid $26.50 per week, was engaged on board the boats in putting in the plant. Under the contract, defendant was to drill holes through the framework of the boats for the insertion of wires, etc. Moag testified that during the absence at various times of one Swanton, who superintended this work for the defendant, he directed the drillers, and estimated his time at 600 hours, and plaintiff charged for it $900. He “kept no track of his time, because he didn’t think he had to.” In the absence of a special agreement, plaintiff could only recover what such services were reasonably worth. The agreement is positively denied by defendant, and when the bill was rendered it made an emphatic protest. The contract, therefore, rests entirely upon the testimony of Mr. Fisher. The sole ground he urges to sustain such a grossly-excessive charge is that it was made “upon the understanding that the government would be soaked.” [301]*301All such contracts, whether based upon an express agreement or simply an understanding, are against public policy, and void. The law does not permit the accomplishment of such an illegal pux*pose under the guise of an “understanding..” This contract, based upon any view of Mr. Fisher’s version of it, is void. The court should have so instructed the jury, and further should have instructed them that plaintiff could recover only what such servcies were reasonably worth.

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Bluebook (online)
74 N.W. 493, 116 Mich. 293, 1898 Mich. LEXIS 683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisher-electric-co-v-bath-iron-works-mich-1898.