Fred E. Gross & Son v. State

214 A.D. 386, 212 N.Y.S. 222, 1925 N.Y. App. Div. LEXIS 10529
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 11, 1925
DocketClaim No. 15236
StatusPublished
Cited by4 cases

This text of 214 A.D. 386 (Fred E. Gross & Son v. State) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fred E. Gross & Son v. State, 214 A.D. 386, 212 N.Y.S. 222, 1925 N.Y. App. Div. LEXIS 10529 (N.Y. Ct. App. 1925).

Opinion

Sears, J.:

In the summer of 1915 the claimant was the successful bidder for the construction of the Barnes Corners-West Lowville Highway, No. 1300, part 2, in Lewis county. The contract for the work was dated July 22, 1915. The claimant soon entered upon the construction of the highway and in May or the early part of June, 1916, discontinued work on the contract claiming that it was justified in so doing and is entitled to damages for two reasons, first, because of a breach of warranty on the State’s part, and second, because of failure on the part of the State to make partial payments for work done as required by the contract. After the claimant abandoned the work on the contract, the State, contending that the claimant had abandoned the work without cause, on or about May 4, 1917, in accordance with the terms of the contract and with the provisions of section 132 of the Highway Law (as amd. by Laws of 1913, chap. 517), canceled claimant’s contract, readvertised and relet the contract in relation to the balance of the work, to the Dale Engineering Company at unit prices, the aggregate amount of which based on approximate estimates exceeded the corresponding aggregate amount contained in the claimant’s contract by $46,450.38, for which sum the State has recovered judgment against the claimant upon a counterclaim. In respect to the counterclaim the claimant contends, first, that the Court of Claims has no jurisdiction to award an affirmative judgment on a cause of action in favor of the State against the claimant; second, that the amount of any possible claim which the State may have against the claimant depends upon the actual cost to the State of doing the work, and this has not been shown because (a) the work was not fully completed at the time of the hearing and no evidence was given as to the State’s payments on the Dale [388]*388Engineering Company’s contract; (b) the gross sum bid in the Dale contract was only approximate and based on estimates of quantity and the amount which the State will have to pay upon the Dale contract is to be determined by the actual quantities of work and material furnished, inaccuracies in the estimates being subject to correction, and (c) the work done by the Dale Company was not the same as that contracted to be done by the claimant for the reason that during the progress of the work by the Dale Company a change was made by the State in the alignment of the road and no proof has been given as to the effect of this change on the cost of the work.

On sheet No. 4, furnished by the State and attached to the specifications at the time that claimant’s bid was made, there was a legend entitled location of materials.” Among other locations of materials there is mentioned a sandstone “ ledge ” stated to be situated one-third of a mile from station 226. The proposal of claimant contained the following statement: The undersigned also hereby declare that he has or they have carefully examined the plans, specifications, form of contract, and that he has or they have personally inspected the actual location of the work together with the local sources of supply; has or have satisfied himself or themselves as to all the quantities and conditions and understands that in signing this proposal he or they waive all right to plead any misunderstanding regarding the same.” The specifications including the sheet with the legend of location of materials were made a part of the contract which was entered into upon the acceptance of the bid. The contract contained the following language: The contractor further agrees that he is fully informed regarding all of the conditions affecting the work to be done and labor and materials to be furnished for the completion of this contract, and that his information was secured by personal investigation and research and not from the estimates of the State Commission of Highways; and that he will make no claim against the State by reason of estimates, tests or representations of any officer or agent of the State.” Before making the bid and entering into the contract the officers of the claimant made no inspection of the location of the road or its surroundings and did not even go to Lewis county, although its secretary did go over the estimates and plans with a man interested in selling road-making machinery, who had some general but no particular knowledge of the locality where the work was to be done.

The claimant first discovered between May 12 and May 20, 1916, that no sandstone ledge existed at the place indicated. A letter from the claimant to the division engineer of the Highway [389]*389Department, dated May 26,1916, contained the following sentences: On sheet No. 4 of the contract plans the information is set forth that ledge or quarry sandstone will be found at station 226 within one-third of a mile from the road. In making up my bid for this work, this information was assumed to be correct. Upon examination of the ground, known as the vicinity station 226,1 find no evidence of any ledge sandstone, and I am further advised by a resident within that locality that they know of no such stone in that vicinity.”

As a matter of fact no sandstone ledge existed in the vicinity of the work.

The error is conceded by the Staté. It has been found to have occurred through a change in the numbering of the stations on the highway when the highway was subdivided for the letting of the contracts, and a failure to notice that the station 226 near which a ledge was situated was not the same as station 226 referred to in claimant’s contract, but was a station on an entirely different part of the highway ~ffot~4ncluded in claimant’s contract.

There was confusion and mistake unquestionably. Mistakes and blunders of this kind do and winbecur, and the Court of Claims has found that the mistake was an honest" mistake, and we discover no error of law or fact in this finding.

The law applicable to this situation is briefly stated in Foundation Co. v. State of New York (233 N. Y. 177): “ A contract and specifications may contain representations as to existing physical conditions. If so, a bidder may rely upon them, even though it be provided that he shall satisfy himself by personal inspection and investigation as to their truth, where because of time or situation such investigation would be unavailing (Faber v. City of New York, 222 N. Y. 255); or statements may be made on which the bidder, because of the language of the contract, cannot rely. He may have agreed that he will not. Then if they are made in good faith he takes the risk of their accuracy.” (See Jackson v. State, 210 App. Div. 115; Matter of Semper v. Duffey, 227 N. Y. 151.) Applying these principles we find that the situation here was not like that in Faber v. City of New York, and Jackson v. State, nor like that in McGovern v. City of New York (234 N. Y. 377) in all which cases the true situation could not have been discovered by reasonable investigation. The evidence here is to the contrary, for the absence of the ledge was promptly discovered by claimant when claimant’s agent came to look for it.

Further in this case by the language of the proposal and contract quoted above, the claimant has agreed not to rely upon the representation which included the erroneous information. In view [390]*390■ of the absence of bad faith, the claimant cannot now assert reliance on the erroneous statement.

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Cite This Page — Counsel Stack

Bluebook (online)
214 A.D. 386, 212 N.Y.S. 222, 1925 N.Y. App. Div. LEXIS 10529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fred-e-gross-son-v-state-nyappdiv-1925.