J. M. Griffith Co. v. City of Los Angeles

54 P. 383, 6 Cal. Unrep. 119, 1898 Cal. LEXIS 1050
California Supreme Court·Decided September 3, 1898·No. L. A. No. 390·Published·Cited by 5 cases

Opinion

BRITT, C.

On April 24, 1893, the city of Los Angeles, defendant here, and certain persons, who may be called the “contractors,” executed several instruments in writing, which for present purposes we may regard as a single contract, whereby the contractors agreed to construct (at their own cost for labor and material) sections 3 and 6a of an outfall sewer leading from said city to the Pacific Ocean, for which construction the city agreed to pay them the aggregate sum of $77,450. Said contractors constructed said sections of sewer, and received most of the compensation provided in the contract. They assigned to the plaintiff, a corporation, their claims against the city for some unpaid balances, and for the value of certain alleged extra materials used by them in the work aforesaid. This is an action on the claims so assigned. Plaintiff had judgment below for some hundreds of dollars, but failed as to the bulk of its demand.

1. By the terms of the said contract the conduit in said sections of sewer was to be a pipe constructed of redwood staves bound with steel bands, and it was provided that the city might retain ten per cent of the price specified in said contract for the space of six months after the completion of the work and its acceptance by the city, “during which time the contractors are -obliged to keep the pipe in repair,” and that in case of their default in that particular the city should make the repairs, using so much of the sum retained as might be necessary for that purpose. On February 23, 1894,' the city and said contractors made a further agreement in writing, reciting that said sections 3 and 6a of the sewer were completed and ready for acceptance by the city, and providing that in lieu of retaining ten per cent of the contract price for application to repairs after acceptance, as allowed in the prior contract of April 24, 1893, the city should withhold the sum of $5,000, and that if at any time during such period of six months after acceptance of said sections any repairs [121] should, in the opinion of the city council, become necessary on said sections, or either of them, the council might at once make the same, and deduct the cost thereof from said sum of $5,000; also, “that at the expiration of six months the city shall pay the said contractors the said sum of $5,000, or so much thereof as has not been paid for the purposes above mentioned. ’ ’ The city retained said sum, and has never paid the same to said contractors, or to the plaintiff, their assignee. The court found that the city expended for repairs on said sections of the sewer to August 23, 1894, inclusive, the sum of $1,894.35, and prior to October 7, 1894, its expenditure in that behalf exceeded $5,000; also, that work on such repairs was begun by the city on July 10, 1894, and continued until February 20, 1895. Plaintiff contends that it should recover the sum of $3,105.65, which is the excess of the amount retained by the city above the payments made for repairs up to August 23, 1894; plaintiff claiming this date to mark the end of the period of six months, during which the city could rightfully expend for repairs any part of said sum of $5,000 withheld as aforesaid. This contention is founded mainly on the clause of the instrument of February 23, 1894, that “at the expiration of six months the city shall pay to the contractors the said sum of $5,000, or so much thereof as has not been used for the purposes above mentioned.” Particular clauses of a contract are subordinate to its general intent (Civ. Code, sec. 1650), and the contracts before us afford a clear case for the application of the principle. The plain object of said instrument of February 23, 1894, understood in connection with the cognate provisions (which it modified) in the contract of April, 1893, was to indemnify the city, to the amount of $5,000, for the cost of repairing defects which might be disclosed in sections 3 and 6a of the sewer during six months next following acceptance thereof by the city, and which the city should at once proceed to make good. The city began the work of repairs well within the period of six months. The continued prosecution thereof involved a cost exceeding the sum retained by it under the several contracts. The good faith of its conduct is in nowise impugned. We think, therefore, that the general intent of the indemnifying provisions of the contracts ought not to be -overridden by the particular clause that at the expiration of six months the city should pay to the contractors so much of the sum withheld ‘ ‘ as [122] has not been used for the purposes above mentioned.” On the theory urged by plaintiff, if the whole line of pipe had collapsed on the last day of the six months during Avhieh the city was allowed to repair at the contractors’ expense, the city would still have been obliged to pay over the indemnifying fund, unless it could on that day actually expend it in replacing the ruin. We conclude that the judgment denying plaintiff’s claim to any part of said sum of $5,000 was right.

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J. M. Griffith Co. v. City of Los Angeles, 54 P. 383, 6 Cal. Unrep. 119, 1898 Cal. LEXIS 1050 (Cal. 1898).

54 P. 383 (J. M. Griffith Co. v. City of Los Angeles) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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