Green v. Chicago & N. W. Ry. Co.

92 F. 873, 35 C.C.A. 68, 1899 U.S. App. LEXIS 2203
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 6, 1899
DocketNo. 1,104
StatusPublished
Cited by10 cases

This text of 92 F. 873 (Green v. Chicago & N. W. Ry. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green v. Chicago & N. W. Ry. Co., 92 F. 873, 35 C.C.A. 68, 1899 U.S. App. LEXIS 2203 (8th Cir. 1899).

Opinion

SANBORN, Circuit Judge

(after stating tbe facts as aboye). A written contract is tbe highest evidence of tbe terms of tbe agreement between tbe parties to it, and, when those terms are clear and unambiguous, they cannot be contradicted or modified by parol evidence of tbe statements of tbe parties in tbe previous oral negotiations which led to it. In view of this rule, it becomes tbe duty of every contracting party to see to it that every agreement to which be puts bis signature fairly and fully expresses tbe terms of bis contract. He owes this duty to tbe party with whom be agrees, because tbe latter invariably pays bis money or shapes bis action in reliance upon tbe express terms of tbe agreement. If be fails to discharge this duty, bis failure is the result of bis own negligence; and he is, and ought to be, estopped thereby from showing that tbe terms of bis contract were other than those expressed in tbe writing. Railway Co. v. Belliwith, 83 Fed. 437, 440, 28 C. C. A. 358, 361, and 55 U. S. App. 113, 119.

Tbe real issue in tbe case at band was whether or not tbe contract of July, 1890, ceased to be executory, and became executed, on October 19, 1891, when tbe release of that date was made and delivered. Tbe claim of tbe company was that, by tbe express terms of the written agreements, it did become executed; and tbe contention of tbe plaintiff was that, in view of tbe terms of tbe contracts, and tbe oral testimony be produced, it remained executory. Tbe contract of July, 1890, expressly provided that 10 per cent, of tbe amounts earned by tbe plaintiff under it should be retained by tbe company until tbe final completion of the work embraced in it, and that then all sums due to tbe plaintiff should be fully paid, and tbe contract should be considered canceled. In other words, it provided that tbe payment of tbe 10 per cent., and of all other sums due under tbe contract, should cancel tbe agreement, and evidence its completion. On October 19, 1891, after tbe plaintiff bad suspended work tbe second time, be accepted tbe final estimate of, and payment for, all tbe work be bad completed under tbe contract, including tbe 10 per cent, which was to be paid only when tbe contract was performed and canceled, and executed a receipt for $9,362.23, tbe balance due him on this basis, “in full payment for work done and for, material and supplies furnished under a contract between tbe said railway company and tbe undersigned, dated tbe 15th day of July, A. D. 1890, for masonry for bridges for 2nd track from Clinton to Lisbon, Iowa,; and which is in full satisfaction, payment, and discharge of all claims on account of tbe -work, supplies, or materials mentioned in said contract, and for all liabilities of said railway company in any manner arising or growing out of said contract.” A final estimate, with a receipt and release at tbe fo.ot of it, is tbe usual evidence of tbe completed execution of an agreement. This contract expressly provided that full payment for all tbe work and labor under it should cancel tbe agreement, and tbe plaintiff accepted full payment, and signed and delivered tbe final estimate and tbe complete reléase. How, then, does be seek to escape from tbe estop-[877]*877pel of these writings? He endeavors to do so in three ways: By testimony of the oral statements of Blunt, the engineer of the company, before and at the time when the release was made; by testimony that there was no consideration for the release; and by construction of the contracts.

Laying aside for the moment the question of consideration, the paroi evidence upon which the plaintiff relies consists of testimony of the oral statements of Mr. Blunt prior to the execution of the release, and of his interpretation of its meaning when it was signed. The former tends to establish a parol agreement made before* the release was executed, and while negotiations for it were progressing, to the effect: that the payment in full for the work done under the contract, including the 10 per cent., should not cancel the original agreement, and evidence its complete execution, as it provided; that the final estimate which Green signed should not be a final estimate, but an intermediate one; and that, in essential particulars, the legal effect of the transaction should be contrary to that evidenced by the writings. No rule or principle of law occurs to us under which this testimony could have been admissible. It Hies in the teeth of the rule that parol evidence cannot be received to contradict or modify written contracts, mid of the conclusive presumption that the whole engagement of the parties, and the manner and extent, of their undertaking, are expressed in their written agreements. McKinley v. Williams, 74 Fed. 94, 101, 20 C. C. A. 812, 319, and 36 U. S. App. 749, 761; Thompson v. Libby, 34 Minn. 374, 377, 26 N. W. 1; Wilson v. Ranch Co., 73 Fed. 994, 999, 20 C. C. A. 244, 249, and 36 U. S. App. 634, 643. The testimony as to Blunt’s interpretation of the release was equally objectionable. IÍ was when Green was about to sign it that Blunt told him that it did not mean what it plainly read, that it covered nothing but the work up to that time, and that it liad no reference to the future, when it expressly provided that lie received the money in full payment and discharge of all work and materials mentioned in the contract, and of all liability of the railway company in any manner arising thereunder. The question which this evidence presents has been repeatedly considered and decided by this court, and our conclusion upon it has been embodied in this rule:

“No representation, promise, or agreement made or opinion expressed in the previous pa-rol negotiations as to the teims or legal effect of the resulting written agreement can be permitted to prevail, either at law or in equity, over the plain provisions and Just interpretation of the contract, in the absence of some artifice or fraud which concealed its terms, and prevented the complainant from reading it.”

The reason for this rule is stated, many authorities in support of it are cited, and some of them are reviewed, in Insurance Co. v. McMaster, 87 Fed. 63, 68-72, 30 C. C. A. 532, 538-510, and 57 U. S. App. 638, and it is useless to repeat them here.

Turning now to the argument of counsel for the plaintiff in error upon the question of consideration, their contention is that the only consideration for the release of the liability of the company to pay for the work and labor done after October 19, 1891, was the fact [878]*878that the 10 per cent, of the amount already earned was paid before it was due; that it is always competent to prove by parol that a contract had no consideration to support it; that the company had the power to waive its right to retain this 10 per cent, until the contract was completed; that the plaintiff testified that it did so before the release was made; that he received no consideration for the release, except the payment for the work he had actually done, and the materials he had actually furnished, under the contract; and that this evidence establishes the want of any consideration for the release. In support of this position, much reliance is placed upon the case of Association v. Wickham, 141 U. S. 564, 580, 12 Sup. Ct. 84. In that case the defendants, who were the owners of a vessel, had two claims against the insurance companies, of about $15,000 each, — one for damages to the vessel by fire, and the other for the cost of raising and saving her cargo after she had been scuttled and sunk to stop the -fire.

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Cite This Page — Counsel Stack

Bluebook (online)
92 F. 873, 35 C.C.A. 68, 1899 U.S. App. LEXIS 2203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-chicago-n-w-ry-co-ca8-1899.