Gillioz v. State Highway Commission

153 S.W.2d 18, 348 Mo. 211, 1941 Mo. LEXIS 713
CourtSupreme Court of Missouri
DecidedJuly 11, 1941
StatusPublished
Cited by26 cases

This text of 153 S.W.2d 18 (Gillioz v. State Highway Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gillioz v. State Highway Commission, 153 S.W.2d 18, 348 Mo. 211, 1941 Mo. LEXIS 713 (Mo. 1941).

Opinions

This is an action in three counts, as follows: Count I to recover $32,500 deducted from the amount due plaintiff, under his contract for reconstruction of the Inter-City Viaduct in Kansas City, for liquidated damages (at the rate of $500 per day) for failure to complete the viaduct for traffic within the specified time; Count II to recover $57,515.67 as damages claimed to have been caused by reason of delays in the work due to the fault of defendant; and Count III to recover $28,609.80 as damages to plaintiff's subcontractor alleged to be due to same causes claimed in Count II, this claim having been assigned to plaintiff. The trial court directed a verdict as to Count III (plaintiff made no claim of error, by motion for new trial or otherwise, as to this action); and the jury found for defendant on Counts I and II. Plaintiff appealed from the final judgment of dismissal entered.

Plaintiff's assignments of error go to defendant's instructions and to rulings on admission of evidence. Defendant contends that any such errors are immaterial because its instructions, in the nature of demurrers to the evidence as to Counts I and II, should have been given on account of plaintiff's failure to comply with the conditions of the contract relating to arbitration. It also contends that a verdict should have been directed as to Count II because of failure to comply with conditions of the contract requiring the filing of an itemized written claim.

[21] As to this latter matter, the contract provision was, as follows:

"H-12. Claims and Legal Rights. As a condition precedent to the filing, by either party in any court, of any action arising out of the contract, notice of claim shall be given the other party as follows: Within sixty (60) days after the release of the retained percentage, the complainant shall file with the other party a full, complete, and itemized written statement of all claims of any character which he may have against the other party arising out of the contract and, within sixty (60) days after such claims are filed, said other party shall mail to the complainant a full, complete, and detailed statement of any claims of any character which he may have against the complainant; and any claim not included in said notices of claim, or any claim so included but not specifically set forth and itemized, shall be deemed waived and shall neither constitute the basis of, *Page 217 nor be included in, any legal action between the parties, nor in any counterclaim or set-off in any such action."

[1] Plaintiff's claim for damages in Count II is based on extra labor cost and additional time of use of machinery. Such provisions for notice of claim by express agreement of the parties have been generally upheld as valid. [1 Am. Jur. 428, sec. 35; 1 C.J.S. 1067, sec. 26; use developed in carrier's contracts, 9 Am. Jur. 914-929, secs. 796-812; 13 C.J.S. 461-495, secs. 234-241; Insurance Contracts, 29 Am. Jur., sec. 1099 et seq.] Plaintiff does not claim invalidity or non-applicability of this provision. He did give timely notice thereunder of his claim for return of the amount withheld for liquidated damages, sued for in Count I. Plaintiff, however, claims waiver of this provision, by reason of a conversation between his general superintendent, Mr. Maring, and defendant's construction engineer, Mr. Corbett. Mr. Maring testified that, at a conference soon after the completion of the viaduct, Mr. Corbett said the only way plaintiff could get the liquidated damages refunded was to sue defendant and get a judgment. Mr. Maring then said: "We told Mr. Corbett that if we were forced to have this additional delay on receiving our liquidated damages that we would also in our lawsuit be forced to include a claim for damage, other than liquidated damages, which we had suffered through their delay. Mr. Corbett advised that the state would not and could not pay that, and we would have to include that in our lawsuit."

[2] There is nothing to show that Mr. Corbett was informed as to the details or items of any such claim, as required by provision H-12 of the contract, or even the amount to be claimed. Moreover, there is nothing to in any way indicate that he had authority to waive the filing of such a statement of the claim for defendant. The contract provided that defendant's "assistants and representatives shall not be authorized to revoke, alter, enlarge, relax or release any requirements of the special provisions, specifications, or contract." Plaintiff cites insurance cases holding there could be waiver by an agent's denial of liability, or by denial or breach of the contract, but cites no cases applying such rules of waiver to public contracts. As we said in Sandy Hites Co. v. State Highway Commission,347 Mo. 954, 149 S.W.2d 828: "We are here dealing with a public contract, and under the law of this State such a contract must be definite and specific as to what is authorized to be done and compensation to be received. This contract could only be made in accordance with the authority granted by the Legislature. (Citing statutes.) The inspectors and engineers had no authority to vary its terms and it specifically so stated." [See also Hawkins v. United States, 96 U.S. 689, 24 L.Ed. 607; American Sales Corp. v. United States (C.C.A.), 32 F.2d 141; Carter-Waters Corp. v. Buchanan County (Mo.), 129 S.W.2d 914, and cases therein cited.] We hold that there *Page 218 was no waiver, and rule that defendant's demurrer to the evidence as to Count II should have been sustained. Therefore, the judgment of final dismissal (with prejudice) of Counts II and III must be affirmed.

[3] Concerning the demurrer to the evidence as to Count I (based on conditions as to arbitration) defendant relies upon the following provisions:

"H-13. Disputes to be Arbitrated. Whenever a dispute or controversy arises between the parties on any matter involving compensation to the Contractor for work actually performed by him but not allowed for payment by the Engineer, or involving the amount or rate of payment under the contract, or concerning claims for extra payment filed by the Contractor and for any reason not allowed by the Engineer, then the same may, by either party, be referred to a board of arbitration for decision and award.

[22] "H-13(a). Demand for Arbitration. Either partydesiring to submit a claim for arbitration shall not do so until a detailed statement of said claim containing an exact enumeration of the items claimed together with the reasons therefor shall have been submitted in writing to the adverse party in accordance with section H-12. . . . After (compliance with certain other conditions) then he may within thirty (30) days, by directing to the adverse party a written demand have the dispute referred to a board of arbitration for decision and award. Should the complaining party fail to demand arbitration within the thirty (30) days stipulated, all rights to arbitration hereunder shall cease."

This provision does not make arbitration (in whole or in part) a condition precedent to the filing of an action as is true of the notice required under H-12. (Which is likewise a condition precedent to obtaining arbitration.) It is difficult to see what usual legal action there could be on or arising out of a contract after a complete arbitration. [See Pope Construction Co. v.

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Cite This Page — Counsel Stack

Bluebook (online)
153 S.W.2d 18, 348 Mo. 211, 1941 Mo. LEXIS 713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gillioz-v-state-highway-commission-mo-1941.