Harrison v. McLaughlin Bros.

70 A. 424, 108 Md. 427, 1908 Md. LEXIS 106
Court of Appeals of Maryland·Decided June 24, 1908·Published·Cited by 3 cases

Opinion

Boyd, C. J.,

delivered the opinion of the Court.

This is . an action of assumpsit by the appellee against the appellant for a balance alleged to be due for labor done and materials furnished under an agreement to build a warehouse. The parties entered into a written contract, under seal, which recites that the party of the first part (appellant) contemplated *429 erecting a factory building upon land owned by him, that the parties of the second part (appellee), described as constructing architect’s and engineers, had prepared plans and specifications for the erection of the building, “and have prepared estimates of the cost thereof, and by such estimates the entire cost of said building, including plans, specifications, supervision and commission, will not exceed twelve thousand dollars.”

It was agreed that the appellee would furnish the plans, specifications and details for construction, superintend the erection and “purchase on behalf of and as the agents of the party of the first part all the necessary materials, and likewise employ-all necessary labor and incur all other necessary cost for the proper construction of the said building according to the said plans and specifications.” The appellee also agreed to furnish the appellant a weekly statement of all materials purchased, of all labor employed, and every other reasonable statement required by him. The appellee agreed to render faithful service to the appellant, to purchase the materials and employ the labor at the lowest possible cost and not take for itself any discounts on materials furnished, or labor supplied, but to-give the appellant the benefit thereof and of any wholesale prices the appellee might obtain.

After providing for a liability policy, to be procured by the appellant, but tobe included in the total estimate for the construction of the building, these provisions follow:

“The party of the first part on Saturday of each week will furnish the necessary monej' to carry on such work and pay for material and for the weekly payment of labor and all other actual expense as the same shall be required by the party of the second part.

The party of the first part agrees to pay to the party of the second part for all services in connection with the said building, so rendered or to be rendered by the party of the'second part, including the furnishing of plans, drawings, elevations and specifications, an amount equal to ten per cent of the total cost of the building.

The plans and specifications referred to in this contract are the same plans and specifications which have been submitted to the party of the first part by the said second party and are *430 referred to in this contract with the same force and effect as though they were annexed hereto.”

It will thus be seen that the appellee was to act as' agent of the appellant in purchasing materials, employing the necessary labor and incurring all costs, and that the appellant was to pay it for all its work, including plans, specifications, supervision, etc., “an amount equal to ten per. cent of the total cost of the building.” Although there is a recital in the contract that by the estimates the entire cost would not exceed $12,000, there is no covenant or agreement that it should be so limited, ■and the plaintiff's testimony tends to show that the increased cost was the result of changes made by the appellant — having rented the building for a chocolate manufactory, instead of for a laundry and other purposes originally intended. Mr. McI.aughlin, secretary and treasurer of the appellee, testified that the changes entailed an additional cost of $5,430.90 including a foundation, which it was thought would not be necessary. The account filed with the declaration states the total cost of the building, including the ten per cent, to be $17,687.25 and allows credits paid by the appellants amounting to $17,021.85, leaving a balance claimed to be due of $665.40.

One of the questions which entered largely into the trial of the case was whether the plaintiff could under the contract recover commissions on the cost above the $12,000. We have already intimated that there is nothing more than an estimate of the cost in the contract, but, of course, the appellee, as agent of the appellant, was required to act in good faith and render faithful service to him. If the jury believed the testimony of the plaintiff, as to the cost of the changes which were made at the instance of the defendant, there was little or rro room to question the good faith of the appellee on that ground, and, unless the contention of the appellant is correct, that the changes were not authorized by reason of a provision in the specifications, made part of the contract, there is nothing to prevent a recovery of the “ten per cent of the total cost of the building.”

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Harrison v. McLaughlin Bros., 70 A. 424, 108 Md. 427, 1908 Md. LEXIS 106 (Md. 1908).

70 A. 424 (Harrison v. McLaughlin Bros.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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