H. D. Watts Co. v. American Bond & Mortgage Co.

157 N.E. 634, 260 Mass. 599, 1927 Mass. LEXIS 1456
CourtMassachusetts Supreme Judicial Court
DecidedJuly 14, 1927
StatusPublished
Cited by14 cases

This text of 157 N.E. 634 (H. D. Watts Co. v. American Bond & Mortgage Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. D. Watts Co. v. American Bond & Mortgage Co., 157 N.E. 634, 260 Mass. 599, 1927 Mass. LEXIS 1456 (Mass. 1927).

Opinion

Braley, J.

The declaration in each of these two actions of tort, which were tried together, contained two counts, the first of which was waived. Thé answer in each case was a general denial. They are before us on exceptions saved by the plaintiff to the admission and exclusion of evidence, at the close of which and subject to the plaintiff’s exception, the trial judge ordered a verdict for the defendants. The jury would have been warranted in finding the following facts:

The plaintiff, a corporation organized under the laws of Maryland, was engaged in the construction of buildings. On July 25, 1922, it entered into an agreement with The Chatham, Inc., a corporation organized under the laws of this Commonwealth, to build for it "The Chatham Apartment Hotel, Brookline, Massachusetts,” according to plans and specifications furnished by its architect, a copy of which "as finally revised, modified and determined upon,” was furnished to the plaintiff, who shortly thereafter visited the proposed building site, "located the building lines, staked out the property, made a survey to find the grades and the amount of excavation to be done, erected a workmen’s shack, put up batter boards and cut away the shrubbery to get the lines through and placed the plaintiff’s general superintendent on the job.” On August 18 and 19, 1922, Harry D. Watts, president of the H. D. Watts Company, together with E. R. Grabow, then president of The Chatham, Inc., and one Ivor B. Clark, a broker, was in Chicago, Illinois, where he was introduced to William J. Moore, president of the American Bond and Mortgage Company, as "the builder of the Chatham.” In the presence of Watts, [602]*602Moore, Clark and Grabow discussed the details of a proposed mortgage loan which resulted in calling in an engineer of the American Bond and Mortgage Company, with whom Watts was asked to verify certain physical aspects of the proposed building. A discussion arose as to the amount of the contractor’s profit, and Moore said, "I am only going to allow $150,000 ... to be paid out of the first mortgage loan,” to which either Clark or Grabow replied "Well, Watts already has a $260,000 fee in his contract. How are you going to overcome that?” Watts remarked that it was immaterial to him whether the $150,000 came out of the first mortgage or where, as he had a contract which gave him a $260,000 fee from the Chatham. The plaintiff’s contract was produced, handed to Moore, who read it, and Moore told Watts that he would have to procure a million dollar bond guaranteeing the performance of his contract, which Watts said he was ready to produce.

On August 30,1922, another meeting took place in Boston between the defendant Moore and Watts, there being present a brother and two sons of Moore, all officials of the American Bond and Mortgage Company, Ivor B. Clark, and the president, clerk, treasurer and a director of The Chatham, Inc., all of whom, after visiting the site of the proposed building, went to a hotel in Swampscott and, with the exception of Watts and Clark, went into conference. Later Watts was called in, and Moore pointed out some apparently conflicting statements in the contract signed by Watts with the "papers that were signed,” in Swampscott, and also alluded to the subject of waiver of liens by the Watts Company and its subcontractors, the Watts Company’s fee, and the making of an appraisal of the building by Watts. One of Moore’s sons suggested that he would send to Watts a form of contract containing a provision for the waiving of liens by sub-contractors and also a copy of the “underwriting agreement that was executed that night between the American Bond and Mortgage Company and The Chatham, Inc.,” for his use in the procurement of a bond from the surety company. This underwriting agreement designated The Chatham, Inc., as "the Owner,” and the American Bond and [603]*603Mortgage Company as “the Broker.” It stated the amount of the broker’s commission “for all its services herein agreed by it to be performed exclusive of disbursement by it to be made and enumerated herein, the sum of twelve and. one-half per centum of the face principal amount of each and all of the above mentioned' bonds (exclusive of interest thereon) and the amount of any accrued interest on said bonds which said Broker may procure from any purchaser or purchasers thereof.” It also contained the statement that the General Contractor’s profit was to be not over $150,000.

Shortly after the middle of September, Watts, accompanied by Clark, saw Moore at his New York office, and was told by Moore that his contract seemed higher than it should be and asked him to talk the matter over with one Thomas, an officer of the Longacre Company, to see if he couldn’t “reduce . . . [his] cost.” This was done and Watts reported the result, to the effect that they “were not very far apart on the cost,” and offered to show Moore how they had ‘‘gotten together.” Moore refused to listen to these details and said “Mr. Tobey and Mr. Clark know my wishes in this matter, and what has got to be done, if I am going any further with this deal. If you have got anything more to say, you had better say it to them”; that “Clark and Tobey were handling this matter for him, and I must take it up with them.” About the last of September Watts again went to New York and had a talk with Clark. Subject to the exception of the defendants, Watts was permitted to testify that “Mr. Clark told me, . . . that I must work out some sort of a contract that would limit that cost, in order to satisfy Mr. Moore.” During this interview Watts produced two forms of contractor’s bonds and a draft copy of a proposed new contract which he gave to Clark, after which they went to see Moore and had a talk with him; Moore took the papers and said “I will look them over.” In reply to Watts’s question — whether or not it was “feasible to open his first mortgage and come along pro rata in his payments” because the secondary financing was not in such shape that it could all be paid in, Moore said that he would think it over [604]*604and advise Clark. “At that time he [Moore] was not disposed to do it.” A day or two afterward Watts and Clark again went to Moore’s office, and, as Clark went into Moore’s private office, Watts saw him hand to Moore a “blue wrapped contract,” which was the one under discussion, and also a letter. Moore first read the contract and then opened the envelope and read the letter. Clark and Moore talked five minutes or more, and when Clark came out, he and Watts left the building together. The defendants objected to Watts testifying what Clark said to him, and upon its exclusion Watts offered to prove that Clark said “Watts, it looks pretty black for Grabow, and it looks black for you too. Moore will not go on with this underwriting unless the Longacre does the work.” When asked to testify to the conversation between himself and Clark on October 9 or 10, 1922, which, upon objection by the defendants, the trial judge excluded, the following offer of proof was made: “He said he wanted to know what I would• take to cancel my contract, that Mr. Moore wouldn’t go ahead with the deal unless the Longacre had the contract, and I told him that I was in my attorney’s office then, and would get on the extension ’phone while he talked to Mr. Bartlett. He said that he was talking from Tobey’s office; they had just been in conference with Moore, and they had to get rid of my contract, or there would be no deal. He asked me what I would take for it. Mr. Bartlett talked to me through the ’phone with them listening and stated $150,000.

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Bluebook (online)
157 N.E. 634, 260 Mass. 599, 1927 Mass. LEXIS 1456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-d-watts-co-v-american-bond-mortgage-co-mass-1927.