Novosk v. Reznick

56 N.E.2d 318, 323 Ill. App. 544, 1944 Ill. App. LEXIS 942
CourtAppellate Court of Illinois
DecidedJune 30, 1944
DocketGen. No. 42,788
StatusPublished
Cited by21 cases

This text of 56 N.E.2d 318 (Novosk v. Reznick) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Novosk v. Reznick, 56 N.E.2d 318, 323 Ill. App. 544, 1944 Ill. App. LEXIS 942 (Ill. Ct. App. 1944).

Opinion

Mr. Justice Lupe

delivered the opinion of the court.

Plaintiffs as operators of defendants’ motor buses sued for the difference between what they received from the defendants and the amount which the defendants contracted in writing with the Works Progress Administration to pay operators, under contracts entered into between the defendants • and the Works Progress Administration. The cause was tried before a jury. The court, at the close of plaintiffs’ evidence, directed a verdict in favor of the defendants. This appeal followed.

Defendants were engaged in the business of operating motor buses in the city of Chicag.o. They entered into certain written contracts with the Works Progress Administration to carry workers to various projects located in Chicago during the years 1936 to 1939. Plaintiffs contend that the contracts sued upon were entered into by defendants with the Works Progress Administration for the benefit of plaintiffs and as third party beneficiaries they were entitled to receive from the defendants the difference between the amount actually received by them for services rendered from defendants (in operating motor buses) and the amount which defendants agreed to pay such operators under the contracts of defendants with Works Progress Administration.

Defendants contend that plaintiffs are not entitled to sue (under the contracts) as they are not third party beneficiaries; and that even if the plaintiffs are entitled to maintain their suit as third party beneficiaries, the plaintiff Serge Novosk could not recover because his claim is barred by section 16 (five year) of the limitation act; and further that plaintiffs failed in their proof to establish a prima facie case. The claim of plaintiff E. E. Nelson is not involved in this appeal, since he was dismissed by stipulation.

At the time of the trial the parties to this proceeding entered into a stipulation that plaintiff Serge Novosk worked for Max Eezniek doing business as the Central West Motor Stages, not incorporated, for 294% days from June 22, 1936 to July 10, 1937 as a bus driver engaged in carrying WPA workers to WPA projects, and that he received as compensation for said services the sum of $726.25; Fred Zachman worked for the defendant Central West Motor Stages, incorporated, for 228 days from May 1,1938 to May 15, 1939 (in the same kind of work with the same'duties as was Novosk), and that he received $694 as compensation for said services.

The contracts between defendants and the Works Progress Administration relied on by plaintiffs and marked plaintiffs’ exhibits 2 to 12 inclusive (except plaintiffs’ exhibit 4) were admitted in evidence, but later stricken by order of court. All of said exhibits (excepting exhibits numbered 9 and 10) contained a provision wherein defendants agreed to pay bus drivers ‘ ‘ not less than the prevailing wage rate in the particular locality in which the work performed is located. Reference may be made to the Works Progress Administration for information concerning such prevailing wage rate.” Exhibits 9 and 10' contain the provision last hereinabove mentioned and in addition thereto the following: “Such prevailing wage rate as established by the Works Progress Administration is $1 per hour.”

It is insisted by plaintiffs that they are third party beneficiaries under the contracts between defendants and the United States Treasury, State Procurement Office (exhibits 2 to 12 inclusive) and argue that in the year 1929 a national economic crisis existed in the United States; that Congress had passed the Emergency Public Works and Construction Projects Act, and that section 401, chapter 8, title 40 USCA establishing such emergency act empowered the President of the United States to create a Federal Emergency Administration of Public Works, to effectuate the purpose of said act. By section 406 thereof, restrictions were imposed upon contracts entered into to carry out the administration of public works under the act. In section 406 we find the following language: “All contracts let for construction projects and all loans and grants pursuant to this title shall contain such provisions as are necessary to insure . . . (3) that all employees shall be paid just and reasonable wages which shall be compensation sufficient to provide for the hours of labor as limited, a standard of living in decency and comfort . . . (5) that the maximum of human labor shall be used in lieu of machinery whenever practicable and consistent with sound economy and public advantage.”

The prime purpose of the passage of the act was to create employment for destitute citizens and to provide a wage that would secure a standard of living in decency and comfort and to relieve chaos and bring about stabilization of business.

The record in this case discloses that at the time money was paid under said contracts to the defendants by the Works Progress Administration the defendants certified that the provisions of said contracts had been complied with by them.

In the case of Montana State Federation of Labor v. School Dist. No. 1, Helena, 7 F. Supp. 82, at page 83, the court said:

“The grant is to benefit labor as the principal thing, benefit to the school district merely an incidental thing. Its object is (1) to employ labor, and (2) at wages which will afford it a decent and comfortable standard of living, not one but both.”

It is not necessary that a person to be benefited by a contract be named therein if he is otherwise sufficiently described or designated, or he may be even one of a class of persons if the class is sufficiently described or designated. 17 C. J. S. 519, subparagraph (d); Hearn v. Ralph Sollitt & Sons Const. Co. (Tex. Civ. App.), 93 S. W. (2d) 551.

In considering the purpose and intent of the Emergency Public Works and Construction Projects Act, the requirements to insure the amount of wages the employee was to receive while working for employers who had entered into contracts such as has been sued upon in this cause; the manner in which the wage scale was to be determined; the certificate which was necessary by the employer, certifying to the Works Progress Administration of his compliance with the provisions of the contract, lead us to conclude that the contracts herein sued upon were for plaintiffs’ benefit, and as third party beneficiaries they were entitled to maintain their suit.

Chapter 83 of the Illinois Revised Statutes, sec. 17 [Jones Ill. Stats. Ann. 107.276] (limitations) provides in substance that all actions on written instruments or other evidence of indebtedness in writing shall be commenced in 10 years next after the cause of action accrues. Section 16 of the limitation act limits the time in which actions must be commenced to five years, and has reference to unwritten contracts, awards, etc. Plaintiffs argue that in view of the fact that they are proper parties plaintiff and have a right to maintain their suit as third party beneficiaries under said contracts, the 10-year statute of limitations applies, whereas defendants contend that the 5-year statute is applicable for the reason that it was necessary for plaintiffs to introduce parol evidence to show the existence of a contractual relationship between the plaintiffs and the defendants.

Plaintiffs in support of their contention rely upon the case of Marianna Lime Products Co. v. McKay, 109 Fla. 275, 147 So. 264; Carson, Pirie, Scott & Co. v.

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Bluebook (online)
56 N.E.2d 318, 323 Ill. App. 544, 1944 Ill. App. LEXIS 942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/novosk-v-reznick-illappct-1944.