Harrigan & Reid Co. v. Hudson

289 N.W. 222, 291 Mich. 478
CourtMichigan Supreme Court
DecidedDecember 19, 1939
DocketDocket No. 133, Calendar No. 40,780.
StatusPublished
Cited by4 cases

This text of 289 N.W. 222 (Harrigan & Reid Co. v. Hudson) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrigan & Reid Co. v. Hudson, 289 N.W. 222, 291 Mich. 478 (Mich. 1939).

Opinion

McAllister, J.

Plaintiff, a corporation engaged in the plumbing and heating business, sued defendants, husband and wife, for balance claimed to be due for services and materials furnished in the construction of a house. On trial before a jury, it received a verdict for $1,009. On motion, the trial court entered a judgment non obstante veredicto in favor of defendants, and plaintiff appeals.

In August, 1936, defendant owners, planning the building of a home, employed Keyes as architect. The terms of such employment are in writing and provided that Keyes was to perform the following services:

1. Proceed with the completion of the working drawings for a residence.

2. Obtain bids.

3. Draw up contracts.

4. Supervise the entire work, including all necessary full-size drawings.

5. In general, render complete architectural services.

The above constituted the only agreement of any nature between Keyes and the defendants.

About the first part of January, 1937, Edward M. Harrigan, president of the plaintiff company, heard *481 that defendants were planning to build a home and, after calling upon Keyes, the architect, examining the specifications for the house and discussing the matter with him, sent a letter to Keyes, stating that the plaintiff company was pleased “to make the following estimate for furnishing labor and material necessary to install plumbing, heating, and ventilating and cooling apparatus” for the sum of $38,126. Later, on February 3d, plaintiff sent another estimate to Keyes with regard to certain deductions and additions to the specifications, as a result of bulletins sent out by Keyes. In this further estimate, plaintiff concluded with the statement that there were certain items necessary to check “before giving you an absolute price.5 ’

On February 1,1937, Talbot & Meier, Inc., general contractors, started work on the residence, and on February 3d plaintiff began preliminary work pursuant to a verbal order. Up to this time, it appears that there was no written contract with the general contractor and no written contracts between plaintiff and defendants, or the architect.

On February 10th, however, a contract was signed and executed between the general contractor and defendants.

When Harrigan first met the architect, he examined certain of the specifications for mechanical trades. These specifications referred to the specifications for the architectural trades, providing that the specifications should be subject to the requirements of the standard form and general conditions of the “contract for the construction of buildings (4th Ed.), copyrighted, 1925, by the American Institute of Architects.” Such general conditions provided that the’contractor should furnish all of the materials and perform all of the work described in the specifications; that the owner would pay the con *482 tractor for the architectural trades, plumbing, heating, ventilating, and electrical wiring; that nothing contained in the contract should create any contractual relation between any subcontractor and owner; that subcontractors agreed to be bound to the contractor by the terms of the agreement and to assume all obligations that he assumed toward the owner. It also provided that “nothing in this article shall create any obligation on the part of the owner to pay to, or see to the payment of any sums to any contractor.” The specifications further provided that all contracts made by the contractors would be covered by the terms and conditions of the general contract, and that the general contractor would assume full responsibility for the proper execution of the entire work required to make a complete job. Harrigan testified that his bid was submitted in accordance with the “general conditions” of such form contract.

Although mention is made therein of a general contractor, Harrigan claims that he did not concern himself about such provision; and stated that when the estimates, referred to by him as “bids,” were submitted, he did not know who the general contractor was to be, and had no means of knowing that the work was to be done under a general contract.

On February 3d, after plaintiff’s estimate of $29,226 had been sent to the architect, and at the same time that a further estimate on deductions or ‘ additions was submitted by plaintiff, the situation, according to Harrigan’s testimony, was described in the following way: “At that time I hadn’t yet arrived at the final figures'. We started working, if my memory serves me, February 3d. * * * Very shortly after the 4th of February I found out about a general contractor.” He further testified: “I didn’t know until we had started the work, when we were *483 told it was going to be handled by a general contractor, and I wanted to know who the general contractor was, because I wasn’t taking chances with that amount of money with every general contractor. ’ ’

A month after Harrigan found out that Talbot & Meier, Inc., was general contractor, he received an order, addressed to plaintiff company, directing delivery of material to the defendant’s premises with directions requiring the work to be done in such a manner that it would avoid delay and setting forth the agreed price of the plumbing and heating at the sum of $28,217. This order was signed: “Talbot & Meier, Inc., purchaser.”

On receipt of this order, Harrigan went to see the general contractor and called attention to the fact that the sum set forth as the agreed price in the order was less than the revised estimate furnished by him to the architect.

What actually happened was that subsequent to receiving revised estimates from Harrigan, the architect did not change the specifications sufficiently to correspond wdth plaintiff’s reduced bid, and that when plaintiff commenced the work,» its bid on such reduced specifications was made the contract price, although the specifications required more materials and service than were comprised in plaintiff’s altered estimate. The terms of the general contract included the reduced price of plaintiff’s bid but not the reduced amount of materials and service.

Harrigan discussed the matter with the architect and claims that he was told that they did not want to take it up at that time with the owners, and that it would be straightened out. About six weeks later plaintiff sent a detailed letter to the general contractor with reference to its claim. Nothing, however, was done about correcting the claimed mistake, and plaintiff continued for several months thereafter *484 and supplied the requested materials and labor until its part of the work was completed. All during this period plaintiff was paid from time to time by the checks of the general contractor, and finally, just before the last payment, upon request of the general contractor, executed a waiver of rights of mechanic’s lien in order to secure the remainder of the money due according to the amount set forth in the general contract.

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Bluebook (online)
289 N.W. 222, 291 Mich. 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrigan-reid-co-v-hudson-mich-1939.