McGrath v. Electrical Construction Co.

370 P.2d 231, 364 P.2d 604, 230 Or. 295, 1961 Ore. LEXIS 367
CourtOregon Supreme Court
DecidedSeptember 6, 1961
StatusPublished
Cited by28 cases

This text of 370 P.2d 231 (McGrath v. Electrical Construction Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGrath v. Electrical Construction Co., 370 P.2d 231, 364 P.2d 604, 230 Or. 295, 1961 Ore. LEXIS 367 (Or. 1961).

Opinions

ROSSMAN, J.

This is an appeal by the defendant, Electrical Construction Company, Inc., from a judgment which the circuit court entered in favor of the plaintiff in an action instituted by him to recover $15,27-5.38 which he averred was the balance due him upon a contract into which he and the defendant had entered. The judgment was based upon a jury’s verdict. The defendant, prior to entering into a contract with the plaintiff, had signed an agreement with Portland General Electric Company whereby it (defendant) bound itself to perform for that concern some construction work upon a hydroelectric project near Estacada. After the defendant had entered into that undertaking it granted a subcontract to the plaintiff whereby the latter agreed to perform a designated part of the construction work specified in the contract between the defendant and Portland General Electric Company. In this action the plaintiff alleged that he had performed in full all of the work described in his subcontract with the defendant. He prayed for the recovery of judgment — not in the amount of the contract sum, but upon the basis of quantum meruit, and, in so doing, contended that the engineer in charge of the construction work through unreasonable, arbitrary action and demands had rendered the plaintiff’s perf ormance of his contract more costly than it would have been if the engineer had acted reasonably. The [298]*298judgment which the plaintiff recovered in the sum of $15,275.38 is the full amount which the complaint sought. The total sum due the plaintiff on the basis of the contract was $13,355.29 and it had been paid to him. But, on the plaintiff’s quantum meruit basis the sum due him, as estimated by the plaintiff, was $28,630.67. When we deduct from it $13,355.29, the amount that has been paid, we have $15,275.38 which is the sum for which judgment was sought and recovered.

The first assignment of error challenges the trial judge’s ruling which denied the defendant’s motion for a directed verdict.

Before the defendant had entered into its contract with Portland General Electric Company it had received two letters from Ebasco Services, Incorporated, one dated August 15, 1958, and the other August 16, 1958. The concern just mentioned was the engineer of Portland General Electric Company, and was in charge of the contemplated work. The letters requested the defendant to submit a bid upon the outlined work and were accompanied with drawings and specifications. Each of the two letters concluded with a paragraph, which, after referring to the work that was the subject of the requested bid, stated that the bid should include:

“* * * all your costs, expense and profit, direct and incidental, for your performance of the work in accordance with the foregoing understandings and the terms in the General Conditions, Specifications and Agreement of the Contract dated May 12, 1958, and all supplements thereto.”

Before .the defendant submitted to Portland General Electric Company a bid in compliance with the requests from Ebasco Services, Incorporated, for a [299]*299bid, it secured one from the plaintiff for the part of the work which became shortly the subject matter of the subcontract between the plaintiff and defendant. Prior to calculating his bid for the subcontract work ■the plaintiff was given the aforementioned letters, specifications and drawings. He was requested to base his bid as to some of the items shown in the drawings and specifications upon a lump sum basis and others upon a unit basis. The plaintiff’s bid complied with that request. After its receipt the defendant incorporated it into the bid which it submitted to Portland General Electric Company and later was awarded the contract. Still later the defendant and the plaintiff entered into a subcontract for the work covered by the plaintiff’s bid. As we have seen, the plaintiff contends that he performed in full the subcontract.

The defendant contends that the letters of August 15 and 16, 1958, that made reference to the general conditions of a contract between defendant and Portland General Electric Company and that were handed to the plaintiff for him to use in making his bid were effective to incorporate the general conditions into the contract that arose between him, as subcontractor, and the defendant, as prime contractor.

The general conditions gave to Ebaseo Services, Incorporated, the engineers for this project, the usual powers of supervision and inspection that are possessed by engineers upon construction work.

Plaintiff claims that the engineer interfered with Mm, delayed him and placed additional burdens on him to such a degree that he was forced to perform the job in a manner substantially different from and more costly than had been contemplated. Testimony which he presented supplied many particulars and instances in support of those charges.

[300]*300The record indicates that the plaintiff originally expected to finish the work in five weeks. As it turned out, more than three months were required to complete the undertaking and the expenses thereof were more than 80 per cent beyond the .original figure. This, the plaintiff contends, was due to the arbitrary and unreasonable supervision exercised over Mm by the defendant and engineer. This unreasonable and arbitrary action, it is claimed, constituted an abandonment of the original contract.

The plaintiff also argues that since the original contract was abandoned and its prices can not be traced to the work he is therefore entitled to recover on the basis of quantum meruit.

The principal defense asserted by the defendant is that all of the work performed by the plaintiff was governed as to price, conditions and quantity by an express contract between the plaintiff and defendant and that the plaintiff has been fully paid in accordance with the contract.

The defendant contends, and we agree, that the references made to (1) the general conditions and (2) the agreement between defendant and Portland General Electric Company in the letters of August 15 and 16, 1958, were effective to include the agreement and the general conditions into the contract between plaintiff and defendant. Cerino v. Oregon Physicians’ Service, 202 Or 474, 483, 276 P2d 397, 401 (1954); Spande v. Western Life Indemnity Co., 61 Or 220, 236, 117 P 973, 979 (1912); 12 Am Jur, Contracts, § 245.

Spande v. Western Life Indemnity Co., 61 Or 220, 236, 117 P 973, 979 (1912) states:

“* * * It is a rule of construction of contracts that, where an instrument refers in terms [301]*301to another instrument as containing part of the stipulation between the parties, that other instrument is itself a part of the contract between the parties * *

The above rule is quoted with approval in Cerino v. Oregon Physicians’ Service, supra.

Therefore, the matters contained in the agreement and the general condition's of the contract dated May 12, 1958, between the defendant and the owner must be considered in the interpretation of the contract between plaintiff and defendant.

There is nothing in the record which directly or by inference indicates that the defendant, personally, in any way substantially hindered or delayed the plaintiff in his work. On the contrary, the plaintiff testified that the defendant was “helpful.”

“Q Did anyone at Electrical Construction Company ever interfere with your work in any way?

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Bluebook (online)
370 P.2d 231, 364 P.2d 604, 230 Or. 295, 1961 Ore. LEXIS 367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgrath-v-electrical-construction-co-or-1961.