Louisville, Evansville & St. Louis Railway Co. v. Donnegan

12 N.E. 153, 111 Ind. 179, 1887 Ind. LEXIS 232
CourtIndiana Supreme Court
DecidedMay 26, 1887
DocketNo. 12,827
StatusPublished
Cited by24 cases

This text of 12 N.E. 153 (Louisville, Evansville & St. Louis Railway Co. v. Donnegan) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville, Evansville & St. Louis Railway Co. v. Donnegan, 12 N.E. 153, 111 Ind. 179, 1887 Ind. LEXIS 232 (Ind. 1887).

Opinion

Zollaks, C. J.

In April, 1881, appellees, as partners, entered into a written contract with the railway company for the construction of a certain section of its road in the State of Illinois. It was therein agreed that the work should be completed on or before the 1st day of August, 1881.'

It was expressly stipulated that time should be of the essence of the contract.

Appellees undertook to do all the grading, masonry, and all such other work as might be necessary to construct the stipulated section of the road in accordance with the specifications, made a part of the contract, as they might be applicable, and agreeably to the directions of the engineer in charge of the work, given from time to time during the progress of the work.

The work was to be paid for by the company upon monthly and final estimates made by its engineers, and it was expressly stipulated that the estimates thus made by the engineer in charge of the work should be conclusive as against appellees, “ without further recourse or appeal.” The chief engineer might review these estimates, and if he did so, his estimates were to be substituted for the estimates reviewed. For extra work the company was to pay the cost and ten per cent, additional. The extra work was to be estimated by [181]*181the company’s engineer, and these estimates were also to be final and conclusive as against appellees.

Appellees were to employ such a foróe of workmen as the engineer might deem adequate to the completion of the work within the time fixed. If they did not employ such a force as the engineer might thus deem adequate, he might employ such number of workmeu as in his judgment would be necessary, and at such wages as he might find necessary and expedient ; pay all such persons, and charge appellees with the amount as so much money paid to them upon the contract. Power was also given to the company’s chief engineer to annul the contract, upon a written notice to appellees, if, in his judgment, the work was not prosecuted by them in a proper manner and with sufficient speed. It was also stipulated that, upon thirty days’ notice to appellees, the company might, at any time, without cause, annul the contract, in which event they should be entitled to pay for work done-up to that time. The right was reserved to the company’s chief engineer to order, in writing, any modification or alteration to be made in the specifications, profiles and plans,, and in like mánner to direct and order the omission of any portion of the work mentioned in the specifications, or to substitute any other work for such portions. If he should determine upon earthworks, bridges, culverts, walls, or other work in addition to that embraced in the contract, appellees were bound to do such work for the prices agreed upon for like work, and upon the same terms and conditions, except, with regard to the time of completing the work, which might be reasonably extended at the discretion of the chief engineer.

The first paragraph of appellees’ complaint was based upon that contract, and its violation by appellant.

It is alleged therein that appellees began the work at once,, furnished material, and continued to construct the road under the contract until in August, 1881, when the railway company, without right, and against their will, took charge of' the work and prosecuted the same to completion; that they, [182]*182without fault on their part, were prevented from completing the section of road specified in the contract within the prescribed time, because' of the company failing to procure the right of way, because of extra work ordered by the engineer, because of the engineer failing to furnish the height, centers and specifications of bridges and culverts, because of changes in the work ordered by the engineer, and because of the incompetency of the engineers; that, after the work was taken out of their hands, the company prosecuted the same at a reckless and exorbitant cost, far in excess of what was required or necessary; that, subsequent to the written agreement, the amount to be paid by the company per cubic yard for earth was fixed by a parol agreement; that in the final estimate the amount returned by the engineer as due to appellees for earth work done by them was too small, giving ’•the figures; that the engineer ordered and directed that the piling for bridges should be of a certain length; that, being ignorant as to the proper length required, they obeyed, and, under the contract, were compelled to obey the instructions of the engineer; that, after the piling were furnished, the ■engineer ordered them to be shortened, and in the final estimate allowed appellees only for the amount of lineal feet actually used, and neglected and refused to allow them for the amount so cut off; that an excessive, unwarranted and fraudulent amount was charged against appellees by the •engineer for placing bridge and culvert timbers furnished by them before their discharge from the work, which amount the engineer, in his final estimate, deducted from the amount due to them; that, subsequent to the written agreement, it was orally agreed between the parties, that appellees should be allowed $2 per thousand feet extra on a large amount of bridge and culvert timbers, because the same was purchased by them at an extra cost, at the request of the company through its proper officers; that in the final estimate by the engineer said extra amount so agreed upon was not allowed to appellees; that the company ordered appellees to remove [183]*183their pile-driver some six miles beyond the section to do extra work, and agreed to pay for such removal and extra work, and that the amount agreed upon was not returned by the engineer in his final estimate; that by the failure of the company to procure right of way, and the failure of the engineer, upon request of appellees, to furnish heights and centers, and to lay out the work, their men were left idle, to their damage in a large sum, giving the amount; that in the final estimate the engineer did not return the full amount due to appellees for iron furnished by them.

It is averred that the engineers in charge of the work, whose orders appellees were bound to obey, and who made the monthly and final estimates, were incompetent and unfit for the duties assigned them; that appellees were not allowed to inspect either the monthly or final estimates, and that, acting in collusion with the company, the engineers, at the time knowing that their estimates were too low and false and fraudulent, made them as they did for the purpose of cheating and defrauding appellees.

Another written contract, similar in all essentials to the above mentioned, except as it had reference to other sections of the road, was entered into by the parties at about the same time, for the construction of another section of the railroad in the State of Illinois. That contract provided that the work should be completed on or before the 1st day of August, 1881.

The second paragraph of appellees’ complaint was based upon that contract, and its violations by appellant. The wrongs charged upon appellant in that paragraph are of the same nature as those charged in the first paragraph, and were charged in substantially the same way.

In June, 1881, a third written contract was entered into between the parties, for the construction of certain sections of the road in the State of Indiana. That contract, also, was similar, in essentials, to the others, except as it had reference to other sections of the road.

[184]

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Bluebook (online)
12 N.E. 153, 111 Ind. 179, 1887 Ind. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-evansville-st-louis-railway-co-v-donnegan-ind-1887.