J. E. Jones & Co. v. Pacific Wood, Lumber & Flume Co.

13 Nev. 359
CourtNevada Supreme Court
DecidedApril 15, 1878
DocketNo. 856
StatusPublished
Cited by8 cases

This text of 13 Nev. 359 (J. E. Jones & Co. v. Pacific Wood, Lumber & Flume Co.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. E. Jones & Co. v. Pacific Wood, Lumber & Flume Co., 13 Nev. 359 (Neb. 1878).

Opinion

By the Court,

Leonard, J.:

In August, 1875, defendant entered into a written contract with M. Pettinelli and M. Pardini, partners and doing business under the firm name of M. Pettinelli & Co., whereby P. & Co. agreed, prior to July 1, 1876, to cut, manufacture and pile for defendant, thirty thousand cords of fire wood of a stipulated length, upon lands of defendant, selected and agreed upon by both parties. P. & Go. also agreed to cut all trees suitable for mill purposes into saw-logs of certain length and diameter, or pay all damages for failure so to do, and to “ clear up ” the land whereon the wood was cut.

Defendant agreed to pay P. & Co. therefor ninety cents a thousand fer cutting the logs, and two and one eighth dollars per cord for the wood so cut and piled. Defendant was to measure the wood and its measurement was to be taken as correct. Defendant agreed to make such advancements, in the meantime, as might be “proper” for P. & Co. to carry out their contract.

Under the contract stated, P. & Co. cut between eight and' nine hundred cords in the fall of 1875, when they ceased work until April, 1876, at which time they resumed and continued until about the first of September, 1876, when they ceased work altogether; having cut, according to defendant’s books, a little less than fifteen thousand cords of wood, and about five hundred and eighty-four thousand two hundred and twenty-four feet of logs. Defendant paid to P. & Co., or on their account, considerable sums of money from time to time, the first payment having been in November, 1875; and thereafter the record shows payments each month, except January and July, 1876. P. & Co. cut the [362]*362wood partly by men employed by the day and partly by subcontractors.

It also appears that on or about the seventeenth or eighteenth of July, 1876, P. & Go. became involved, and were unable to pay their laborers, who were dissatisfied and threatened to stop work if they were not paid or their wages secured. They proposed to keep possession of the wood that had not been measirred and accepted by defendant, until they were paid. Under such circumstances, D. H. J ones, defendant’s superintendent, made a verbal agreement with P. & Co., on the eighteenth of July, with the consent and to the satisfaction of the laborers and sub-contractors, or at least a large part of them, to the effect that defendant should pay the men for their labor out of the first moneys due to P. & Co., under the wood contract. Under this arrangement the men continued their work. In accordance with the verbal agreement stated, Pettinelli & Pardini, on the morning of July 21, and prior to the drawing of the ten thousand dollar order hereinafter mentioned, made and delivered to defendant’s superintendent a written order, signed by both, directing the superintendent to retain from the first moneys due to P. & Co. on their contract, the amount due their men for work done on wood and logs by the terms of their contract, the balance, after paying the men, to be held subject to their order.

The superintendent verbally accepted the order and agreed to pay the men accordingly. He commenced to pay the laborers about the first part of August, generally upon statements from P. & Co., showing the amount due, and continued to do so until P. & Co. discontinued work. Defendant paid the men in full, and from the testimony of the superintendent and the books of defendant, it appears that, including the amount paid the men, P. & Co. have been paid the whole amount coming to them under their contract, except four hundred and eighty-nine dollars, for which amount defendant is liable on account of legal garnishments in suits against P. & Co.

Plaintiffs did not make any advancements, or pay any sums of money to P. & Co. after the twenty-first of July, [363]*363nor did defendant pay any sum to or for P. & Co. on their contract, after that date, except the amounts due the men as before stated, and certain sums for which defendant was held as garnishee, the latter not being questioned by plaintiffs. During the continuance of work under the contract, between the first part of June and the twenty-first of July, 1876, P. & Co. represented to plaintiffs, who are bankers in Peno, that defendant was indebted to them on their contract in a large sum — about ten or twelve thousand dollars— and thereupon plaintiffs honored their checks from time to time, taking orders or drafts upon defendant as security for money advanced or to be advanced.

On the sixth day of June, 1876, when P. & Co. were indebted to plaintiffs in about the sum of one thousand three hundred dollars, for advances, the former made and delivered to the latter an order of which the following is a copy:

Peno, June 6, 1876.
“1,000. Pay to the order of J. E. Jones & Co. one thousand dollars in United States gold coin, value received, and charge the same to the account of
M. Pettinelli & Co.
To the Pacific Wood, Lumber and Flume Company, Virginia City, Nev.”

On the same or following day, plaintiffs forwarded the order to the defendant with the request that the latter should “hold it against P. & Co. for plaintiffs’ benefit, that in case any suit should be brought against P. & Co., the order might operate as an assignment to the extent of one thousand dollars.”

On the sixteenth of July, 1876, defendant’s superintendent returned the order to plaintiffs with a letter wherein he said: “ The inclosed draft I find among the papers of the company. To avoid any question (as) to Pardini’s authority to draw in this way, I return it to you for proper signature (P. & P.), which please get, and if you wish, will hold him (them) for payment from any balance due them in settlement and completion of the contract.” This draft was returned bv the plaintiffs to P. & Co. on the twenty-first of July.

[364]*364On the tenth clay of June, 1876, when P. & Oo. were indebted to plaintiffs in the sum of two thousand two hundred dollars for advances, the former made and delivered to the latter an order upon defendant, in the same form, for six thousand dollars. This included two thousand five hundred dollars due from P. & Co. to one Mayberry, and the balance was intended to secure plaintiffs for advances made and to be made. Mayberry presented the order to defendant on the tenth of June for acceptance and payment. Defendant indorsed its written acceptance for two thousand five hundred dollars, and paid that amount to Mayberry, who receipted therefor in the name of J. E. Jones & Oo. On the nineteenth of June defendant accepted this order for the balance, three thousand five hundred dollars, which was paid to plaintiffs September 13, 1876.

On the sixth of July, 1876, plaintiffs, for the same purpose, received a third order from P. & Oo., in the same form, for three thousand dollars, when P. & Co. owed plaintiffs four thousand and seventy-five dollars — less the acceptance of three thousand five hundred dollars, before mentioned. This order was returned by defendant without acceptance, and with the order for one thousand dollars was given up by plaintiffs to P. & Oo. July 21. On the twenty-first of July, when P. & Go.

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Bluebook (online)
13 Nev. 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-e-jones-co-v-pacific-wood-lumber-flume-co-nev-1878.