Malone v. Phila. & Reading R. R.

27 A. 756, 157 Pa. 430, 33 W.N.C. 373, 1893 Pa. LEXIS 1433
CourtSupreme Court of Pennsylvania
DecidedOctober 2, 1893
DocketAppeal, No. 102
StatusPublished
Cited by12 cases

This text of 27 A. 756 (Malone v. Phila. & Reading R. R.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malone v. Phila. & Reading R. R., 27 A. 756, 157 Pa. 430, 33 W.N.C. 373, 1893 Pa. LEXIS 1433 (Pa. 1893).

Opinion

Opinion by

Mb. Justice Dean,

The plaintiffs, by a written agreement with defendant, on 21st of May, 1889, contracted to do the grading, rock-cutting, masonry and other work required in the enlargement of Manayunk and Phoenixville tunnels, and approaches to same, also certain work upon the stone arch bridge across the Schuylkill at north end of Phoenixville tunnel. The work was to be done in a workmanlike manner according to elaborate plans and specifications which formed part of tile agreement, under the direction of, and to the satisfaction of, defendants’ chief engineer, all to be completed by the following 22d of September. Defendant was to pay for widening Manayunk tunnel, $18,000; for Phcenixville tunnel and approaches, including stone arch bridge, $54,000. Payments were to be made by the usual monthly estimates, but ten per cent was to be retained until the work was completed, when, if performed according to the contract and satisfaction of the chief engineer, a final estimate was to be had, and payment made within thirty days. The plaintiffs were to commence the work within ten days, and prosecute it with such force as the engineer should deem necessary for its completion, as provided in the contract, and if they should not so prosecute the work, then the chief engineer was [438]*438authorized to employ such workmen at such wages as in his judgment were necessary to the completion of the work, and charge the cost as so much money paid on the contract. Then came this final stipulation :

“ And it is mutually agreed and distinctly understood that the decision of the chief engineer shall be final and conclusive in any dispute that may arise between the parties to this agreement relative to or touching the same; and each and every of said parties do hereby waive any right of action, suit or suits, or other remedy in law or otherwise, by virtue of said covenants, so that the decision of said engineer shall, in the nature of an award, be final and conclusive on the claims of said parties.”

The plaintiffs began the work, and claimed to have completed it about February 15, 1890, when they quit; the ■ defendant, alleging the work was not performed as required by the contract, employed workmen and finished it. At the time they quit, plaintiffs had been paid $51,000 of the $72,000 specified in the contract; they claimed the remainder, $21,000, and, in addition, about $7,000 for work done under a parol agreement, by a different and more costíy method than that specified in the written contract, and for work extra to the contract. The defendant denied plaintiffs’ right to any amount outside the v contract price, and alleged there should be deducted from this the cost of completing their unperformed contract, about $9,000, which, then, at most, would have left only about $12,000 due them. And defendant further contended, that as the engineer, under the arbitration clause of the agreement, had decided only $12,111.34 was due, this was all they could recover, and that amount not in this suit, but in an action on the award.

It is proper to say here, that there is no intimation that the authority of the chief engineer, as arbiter of disputes, was imported into, or continued in the alleged new parol contract. If his functions survived, they were confined wholly to disputes under the written contract. His decision, being after it was finished, necessarily embraced the whole line or locality of the work. He did not attempt to draw a line of distinction between the work done by plaintiffs under the written agreement, and that done by them under the alleged parol agreement. The fact of a parol agreement was wholly ignored by him. So [439]*439it is not worth while to inquire, whether the jurisdiction of the engineer might, even if there was a parol agreement, have been exercised over matters not affected by it in the written one. The decision covered indiscriminately the whole work, and cannot stand as to part. He says in the decision: “ I have carefully considered all the points involved in the settlement for the work done by It. A. Malone & Sons in compliance with the agreement entered into between you under date of May 21, 1889, for the enlargement of Manayunk and Phoenixville tunnels.” He then, among other things, decides they did not put on enough of men, and did not finish the work as required by the written contract. He does not take into consideration the fact, alleged by plaintiffs, that, when the rock-cutting in the Phrenixville tunnel was about half done, by agreement, the method of doing it was entirely changed ; and does not consider whether, under the new method, it was left unfinished. He passes on the work on the ground covered by the written and alleged parol contracts, without attempting to separate them. If, then, as a fact there was a parol agreement, the decision embraces to a considerable extent matters covered by it; for this, there is no evidence of authority in the engineer, and whether his authority as to disputes under the written agreement, not affected by the new one, continued to exist or not, his decision made no distinction as to the rights of plaintiffs. Therefore, the decision must, as a whole, stand, if there was no alteration of the written agreement, or fall if there was.

At the trial, under the instructions of the court upon the evidence, there was a verdict in plaintiffs’ favor for $81,203.02. This, however, included an item of $3,026.06, which defendants admitted to be due plaintiffs for extra or force work. It was also undisputed by plaintiffs, that defendants were entitled to a credit of $2,000, which they had agreed to pay for removing rock, and also $1,225 for canal service rendered by defendants to plaintiffs.

As the case was tried in the court below, the real points of contention were:

1. Was the written contract altered in material particulars by a subsequent parol contract?

2. If there was such alteration, then, were the plaintiffs, under the new or altered contract, entitled to an increased sum of money for the work done ?

[440]*440If there was such alteration, then the new contract, as is said in Vicary v. Moore, 2 Watts, 457, and the numerous cases following it, drew to its nature the retained stipulations of the old contract, and reduced the whole to parol, the written contract to be used -no further than to mark the terms and extent of the new stipulations.

According to the written contract, the plaintiffs were to be paid in the lump $54,000, for enlarging the Phcenixville tunnel and its approaches. The height of the tunnel was to be increased by removing the rock bottom to the depth of a foot for a length of nine hundred and twenty-five feet. Plaintiffs alleged that, about the time one half this work was completed, it was agreed that, instead of taking up the bottom to secure the increased height, the rock top should be taken down, and thereafter the work was so done. That a change by consent of both parties was made, is established by the evidence of the witnesses on both sides. Defendants deny that it was a material, alteration, or that they specially requested it. It has never been held that slight and immaterial variations by the consent of the parties in a written contract work an entire change in the nature of the contract, and the rights and obligations of the parties. Such changes, which could not have been reasonably foreseen by either party, often, during the progress of the work, are found desirable by one or the other, and sometimes by both. When slight changes are so made, they affect not the nature of the written contract, or the stipulations contained in it.

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Cite This Page — Counsel Stack

Bluebook (online)
27 A. 756, 157 Pa. 430, 33 W.N.C. 373, 1893 Pa. LEXIS 1433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malone-v-phila-reading-r-r-pa-1893.