John A. Westlund, Inc. v. O'Bryan Construction Co.

187 A.2d 507, 123 Vt. 301, 1963 Vt. LEXIS 123
CourtSupreme Court of Vermont
DecidedJanuary 2, 1963
Docket1157
StatusPublished
Cited by9 cases

This text of 187 A.2d 507 (John A. Westlund, Inc. v. O'Bryan Construction Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John A. Westlund, Inc. v. O'Bryan Construction Co., 187 A.2d 507, 123 Vt. 301, 1963 Vt. LEXIS 123 (Vt. 1963).

Opinions

[302]*302Barney, J.

The plaintiff corporation was employed as a subcontractor on an industrial plant construction project in Brattleboro called the Case plant. It is suing the defendant corporation, the general contractor, for money claimed to be due for work done in connection with the erection of the plant. It is the defendant’s position that the plaintiff was awarded a verdict below principally because the jury never had fully put before it the evidence or the law dealing with the duty of fidelity required of agents. The agency involved was that of Arthur Mosher, who was construction superintendent for the defendant. Neither party was able to produce him as a witness, either in person or by deposition.

The original contractual arrangement between the parties is not in dispute. The defendant, as general contractor, had bound himself by written agreement to construct the Case plant for $542,000. Because of changes in the plans during construction the final contract price was $656,444.61. The plaintiff, as one of some eighteen subcontractors, had entered into a written contract to perform certain portions of the construction as spelled out in the terms of the contract for $d5,821. There were nine written change orders applicable to plaintiff’s part of the job. The defendant in fact paid the plaintiff $103,299.39.

In bringing suit against the defendant, the plaintiff claimed that an additional sum in excess of $149,000 was still owed to it by the defendant. The jury found the sum to be $40,000. The suit of the plaintiff was based, not on the performance of the original subcontract, but upon what it claimed was a modification of that agreement, subsequently entered into by the parties. The plaintiff’s version of this transaction may be simply stated. Its evidence, given by John A. Westlund, its president, was that he and Harold Z. O’Bryan, president of the plaintiff corporation, had a conversation in the presence of Arthur Mosher, in which O’Bryan suggested and Westlund agreed that the contract between them be replaced by a cost-plus arrangement. According to Westlund, O’Bryan then directed Mosher to reduce this agreement to writing in the form of a letter to the plaintiff. Such a letter, signed by Mosher on behalf of the defendant, was put in evidence. The reason for this change, as testified to by Westlund, was that if the plaintiff, in its operation, unionized its workers, the defendant would be able to avert having to unionize [303]*303its whole force. Westlund stated that when O’Bryan told him that the plaintiff would have to unionize, Westlund objected that his company could not perform in accordance with its subcontract at union wage levels. He claimed that O’Bryan, thereupon agreed to the change to cost-plus. This suit seeks to enforce that agreement.

The defendant claims that no modification of the original subcontract was ever in fact authorized. It contends that the letter written by Mosher was, to the knowledge of the plaintiff, the product of the concerted action of Westlund and Mosher and against the interest of the defendant, made without its knowledge.

The defendant produced evidence intended to demonstrate that the claim of an agreed modification was improbable on the face of it and was refuted by the conduct of the plaintiff itself. In this connection the defendant called attention to the fact that while the original contract consisted of a four-page standard form with detailed provisions executed in duplicate on May 12, 1960 by Howard Z. O’Bryan, president of defendant, and John A. Westlund, president of plaintiff, the modification was a one-page, handwritten document prepared and signed by Arthur Mosher alone, just eleven days after the execution of the original contract. The defendant’s evidence showed that it was never informed as to the existence of this letter of modification until after suit was brought; that the original was never shown its officers, nor was a copy of any kind furnished them. The defendant was never billed by the plaintiff on a cost-plus basis. Back charges are not applicable to a cost-plus contract, yet in November 1960, Mrs. Westlund, treasurer of the plaintiff, prepared and sent a letter, signed by her husband, giving notice to the defendant that the plaintiff would not be responsible for back charges after November 28, 1960. Pricing change orders were unnecessary under a cost-plus contract, but there were letters from the plaintiff to the defendant in August and November 1960, stating that prices for change orders were being worked up. John Westlund testified that these letters misstated the facts and were written by him to the defendant at Mosher’s direction.

The defendant also says that the relationship between Mosher and Westlund was such that Mosher’s required loyalty to the defendant was overcome, and he came to act contrary to his employer’s [304]*304interest. The evidence of this relationship took many forms in the defendant’s case, but may be summarized as follows:

Sometime prior to December 1959, Mosher was employed on a job in Keene, N. H., by the Ley Construction Company, as general construction supervisor. In connection with that job he contacted the plaintiff, whose office was in Keene, in connection with subcontracting some work on that job. The plaintiff was successful. Following that, some time in 1959, Mosher and the plaintiff entered a contractual arrangement by which plaintiff was to build a house for Mosher for $29,000. In January 1960, Mosher went to work as construction superintendent for the defendant. At that time Westlund and O’Bryan were not acquainted. However, the plaintiff, shortly thereafter, in March 1960, got a subcontract on a job in Claremont, N. H., for which the defendant was the general contractor. Mosher arranged the hiring. On May 12, 1960, the plaintiff got the subcontract here in question on the Case plant, on which the defendant was the general contractor. Mosher invited the plaintiff to come to defendant’s office and discuss the bid. In August or September 1960, the plaintiff got a subcontract on a job in Keene, N. H., on which the defendant was the general contractor. Mosher was construction superintendent for the defendant during this whole period. Mosher’s son was employed by the plaintiff during this time. On May 12, 1960, the plaintiff purchased a lot of land for $3,000. On July 7, 1960, the plaintiff conveyed this lot to Arthur Mosher’s wife by a deed bearing no revenue stamps. On May 16, 1960, the plaintiff executed an instrument authorizing Mosher to act for it in purchasing materials for the Case plant job and for the construction of Mosher’s house. Westlund testified that the lot deeded to Mosher was in the nature of a loan and not a gift.

With this evidence all in the case, Mrs. Westlund took the stand and the defendant cross-examined her in her capacity as treasurer and record keeper for the plaintiff corporation. She was questioned as to whether she had any note, letter, or any evidence of an obligation on the part of Mosher to pay $3,000 to either John Westlund or John A. Westlund, Inc. On objection, the trial court excluded further examination on the matter of the purchase of the land on the grounds it was an attempt to impeach a witness on a collateral matter.

At the bench the defendant stated that it expected Mrs. Westlund would testify that she signed a check of the plaintiff’s for $3,000 in [305]*305payment for the land, and that the plaintiff had never received from Mosher any note or other evidence of obligation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mann v. Adventure Quest, Inc.
2009 VT 38 (Supreme Court of Vermont, 2009)
In Re Estate of Kurrelmeyer
2006 VT 19 (Supreme Court of Vermont, 2006)
Bernstein v. Centaur Insurance
644 F. Supp. 1361 (S.D. New York, 1986)
Ryan v. OLD FOX CHEMICAL CO. INC.
427 A.2d 371 (Supreme Court of Vermont, 1981)
Negyessy v. Strong
388 A.2d 383 (Supreme Court of Vermont, 1978)
Blitz v. Breen
321 A.2d 48 (Supreme Court of Vermont, 1974)
Fireman's Fund Insurance Company v. Knutsen
324 A.2d 223 (Supreme Court of Vermont, 1974)
Vanlandingham v. Gartman
367 S.W.2d 111 (Supreme Court of Arkansas, 1963)
John A. Westlund, Inc. v. O'Bryan Construction Co.
187 A.2d 507 (Supreme Court of Vermont, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
187 A.2d 507, 123 Vt. 301, 1963 Vt. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-a-westlund-inc-v-obryan-construction-co-vt-1963.