Green v. Corrigan

87 Mo. 359
CourtSupreme Court of Missouri
DecidedOctober 15, 1885
StatusPublished
Cited by15 cases

This text of 87 Mo. 359 (Green v. Corrigan) 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
Green v. Corrigan, 87 Mo. 359 (Mo. 1885).

Opinions

Henry, C. J.

This action was commenced in the Jackson county special law and equity court to compel a settlement of an alleged partnership between plaintiff and defendant in the construction of the Kansas City water works. The petition alleges that defendant entered into a contract-with the National Water Works Company, of New York, for furnishing the materials and doing said, work at certain stipulated prices, and subsequently by a written agreement between him and the plaintiff the latter became’ defendant’s partner in the work. It then alleges the completion of the work. That the actual cost including materials was $109,020, but that at the contract prices it amounted to $214,-109.61. That defendant received payments as the work progressed and on a final settlement received $51,000 instead of $102,000 then due. That the settlement was made with Mastín, the financial agent of the company, between whom and defendant it was then .fraudulently agreed for the purpose of cheating and defrauding plaintiff that Mastín should retain $51,000 which was to be concealed and was concealed from plaintiff for a long time after. That defendant on receipt of said $51,000 [366]*366gave Mastín a receipt in full to enable Mastín to charge the full amount of $102,000 in his settlement with the water works company. That subsequently Mastín settled with that company and with this defendant on that basis, etc. Plaintiff claims one-half as his share of said $51,000 and also one-half of $50,000 alleged to have been previously received by the defendant with interest, which .he charges were the net profits on the contract.

The defendant’s answer contains a specific denial of .all the material facts alleged in the petition. States that the net profits received by him did not exceed $20,000. That plaintiff, as attorney for the water works company, fixed the prices to be paid for the work. And that those prices were unreasonable. That he was forced to make the deduction of $51,000 from contract prices by reason of plaintiff’s advice to the company ; and for .a further defence admitted the execution of the agreement relied upon by plaintiff as a partnership agreement, but alleges that it was illegal and void because Green was then the attorney of the water works company, and his duty to that company forbade his making such a ■contract. That it was his duty to advise that company whether the contract between’Corrigan and that company was wise and prudent in its provisions and details, and 'that in making said contract plaintiff acted without the knowledge or consent of said company. The replication was a specific denial of all the allegations in the .answer. On a hearing of the cause before a special judge there was a finding for plaintiff and a judgment in his favor for $30,-285.71.

On the trial plaintiff introduced in evidence the written agreement between him and Corrigan. Also testimony tending to prove that he aided and assisted in the work ; various payments made to Corrigan on account of the work. Denied.in his own testimony that ■he was the attorney of the w'ater works company. And .generally testimony was introduced by plaintiff tending [367]*367to establish the facts alleged in the petition. In his own testimony he stated that the water works company, in fact, had no interest in the work, and never pnt anything into them, but permitted certain parties to build the works' in its name. That those parties were himself, John J. and Thomas Mastín, of Kansas City, and Donnell, Lawson & •Company, of New York. Plaintiff read in evidence the •deposition of defendant in which he testified that he had .an understanding with Mastín as soon as the water works ■ordinance was passed by Kansas City, that he, Corrigan, should have the work and that Green told the defendant that he wanted him to make $25,000, which was less than he usually made on such contracts. That Green told him that ‘ ‘ the understanding was, he Avas to stand in with me, Donnell, Lawson & Company were to make their profits by commissions on the sale of first mortgage “bonds, and the Mastins by loaning- the money at two percent, per month.” “Green said this was the understanding among all the parties. Green said he thought he could control the fixing of prices.”

Corrigan also testified that he supposed the profits, •as he settled with Mastín, vrere from $36,000 to $37,000. Mr. Green did not, in his testimony, contradict the above statement made by Corrigan as to his representation to •Corrigan. And in his written argument filed in this court he says: “The prices in the contract were fixed •on consultation at what they were for the express purpose and with the understanding among all partners that in consequence of the risk taken, and a large ■margin to be carried for the company the contractor Avas to have liberal prices. And the great. reduction in the prices of labor and material which took place during the spring and summer of 1874 left the margin of profit larger than it otherwise would have been. The company •approved the prices -with full knowledge, nothing about them being concealed or misrepresented,” etc.

Mr. John J. Mastín contradicted Mr. Green; testi[368]*368fied that he had nothing to do with fixing the prices for the work. That Green, the engineer and Corrigan fixed the prices. That when Corrigan came for a settlement he told Corrigan that the contract was fraudulent and he did not intend to pay it. That he did not know that Corrigan and Green were partners until long after they became partners. Mr. Mahan testified that “J. J. Mastin, Green and himself were by resolution constituted a local board at Kansas City with power to make all contracts for the construction of the water works. Col. Green was a little more liberal in his contracts than he should have been, and I objected to some of the prices in contracts let by him and they were sometimes modified and lowered. The letting of most of the contracts at Kansas City was left to him, as he was better acquainted with prices than I was. Having co-authority with him he made most of the contracts which were sometimes modified and afterwards approved by the local board. Col. Green made the contract with Corrigan, as one of the executive committee ; stated that he knew the prices of work in Kansas City better than I did as I was a stranger there, and that he would make the contract with Corrigan and submit it, which he did, with prices for the different characters of work, all made up. I objected to some of the prices and stated to him that they were entirely too high. After considerable discussion he stated that at those prices Corrigan would not make over $25,000 on the whole contract. I was satisfied that with a contract of that magnitude a man ought to make $25,000, and, therefore, consented to a ratification of the contract.”

That the other parties, associated as partners with Mr. Green in the water works enterprise, were ignorant of the arrangement he had made with Corrigan is clearly established by the evidence. To this effect is the testimony of Mastin and Corrigan; and Green, in a letter to Corrigan July 4, 1876, with respect to the contract [369]*369Corrigan had with the water works company to construct the works, used the following language: “ There is a still more dangerous question going to the validity of the entire contract as against the company. That I will call your attention to when I see yon.” Again in the same letter: “The company are not at present aware of the facts, but may at any time discover them.” What facts are these alluded to 1

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Bluebook (online)
87 Mo. 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-corrigan-mo-1885.