Palmberg v. Astoria

199 P. 630, 101 Or. 224, 16 A.L.R. 1125, 1921 Ore. LEXIS 157
CourtOregon Supreme Court
DecidedJuly 26, 1921
StatusPublished
Cited by8 cases

This text of 199 P. 630 (Palmberg v. Astoria) 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
Palmberg v. Astoria, 199 P. 630, 101 Or. 224, 16 A.L.R. 1125, 1921 Ore. LEXIS 157 (Or. 1921).

Opinion

McBRIDE, J.

Taking the complaint as true, the facts may be concretely summed up as follows: Tbe city council, having in contemplation the improvement of Olney Avenue, a street in Astoria, directed its engineer and surveyor to prepare plans and specifications, which was done; and as an exhibit to the complaint a profile of the proposed improvement and the following specifications are attached, and it is alleged that these were also made a part of the contract between plaintiff and the defendant city. It is not alleged that these constituted all the plans and specifications on file with the city auditor. The specifications which are included in the complaint are as follows:

Items of Work and Material

‘'Item No. Unit

Total Quantities Units. Prices. Totals.

Excavation ........... 9,650 eu. yds. Cu. Yds.

Embankment .......... 17,087 cu. yds. cu. yds.

16' planked roadway. .. 390 ft. per ft.

5' wooden sidewalk.... 820 ft. ■per ft.

Repair of macadam between 7tb and 6th. Macadam 6" thick by 20' x 355r=160 eu. yds. consolidated. ■cu. yds.”

The failure to allege that these exhibits constituted all the data filed with the city auditor becomes important in the case, as will hereinafter be shown.

Thereafter the council caused the following advertisement for bids to be published:

“Notice is hereby given, that the committee on streets and public ways of the common council of the City of Astoria, will on the 27th day of July, 1918, at the hour of 2 o’clock p. m., in the office of the auditor and police judge, in the city hall, of the city of Astoria, open bids for improving Olney Avenue from the west line of 5th Street to the east line of 10th Street, excepting the intersection or crossing of Olney Avenue with 7th Street, according to plans and specifications and ordinance number 5275 providing [227]*227for the time and manner of making said improvement, which ordinance was approved on the 19th day of July, 1918.
“Sealed bids will be received by the auditor and police judge, up to the hour of 2 o’clock p. m., of said 27th day of July, 1918.
“A certified check for an amount equal to five per cent of the total amount bid must accompany each bid, which said certified check shall be made payable to the order of the city of Astoria, Oregon, and each proposal must be accompanied by the guarantee of responsible sureties to furnish bond in the amount of 75 per cent of the total amount bid, if the proposal is accepted.
“Character of Work.
“Excavation, 9650 cu. yds.; embankment, 17,087 cu. yds.; 16-ft. planked roadway, 390 ft.; 5-ft. wooden sidewalk, 820 ft.; repair to existing macadam; macadam roadway 20 feet wide by 355 ft. long and 6 in. thick.
“Plans and specifications and blank forms of proposal are on file with the auditor and police judge and city surveyor, and may be had upon application to the city surveyor, at the city hall, upon deposit of the sum of $5.
“The right is reserved to reject any and all bids.”

The plaintiff, relying upon the specifications as to the amount of embankment, bid the sum of $19,849 for the completion of the whole work, and his bid was accepted. He then gave his bond and entered upon the work of making the improvement. The foundation of this action lies in the fact that in his computation as shown above the city surveyor made a mistake as to the number of cubic yards of embankment to be constructed, so that instead of necessitating 17,087 cubic yards the improvement actually required 28,567, involving, according to the complaint, an additional cost of $14,258. After plaintiff had entered upon the prosecution of the work he dis[228]*228covered this mistake and notified the city surveyor, who demanded that he go ahead and complete his contract. He notified the city, so the complaint states, that he would complete the contract under protest, hut would hold the city liable in damages sustained by him by reason of the mistake in the specifications. He completed the work and the city paid him . the contract price but refused to pay his claim of $14,258 for the additional embankment; and this action follows.

Plaintiff’s case is this: The city invited him to bid on a contract, representing in its invitation that he would have to construct approximately 17,000 cubic yards of embankment, when in fact there were over 28,000 yards. He relied on this representation and after he had given his bond to complete the street and entered upon the work he found that he had been deceived to the extent above indicated, through the mistake of the city surveyor in preparing the specifications. His contract did not provide that he should be paid a certain amount per cubic yard for constructing the embankment, but it was in gross, requiring him to complete the whole improvement for a certain sum. There is no provision for payment for extra work; indeed, such payment is excluded by the terms of the contract. Plaintiff’s remedy, if any, must therefore be found in an action for damages for the loss occasioned by the misleading error of the city surveyor. Were this an action by a contractor against a private person who had so negligently misled him and caused him to incur extra expense, the remedy would be plain. The law would say that, having misled the contractor by his representation if negligently made, and having profited by the result of his labors, the employer should make good the damages caused to the contractor by the [229]*229employer’s mistake. But municipal corporations of the present day are so hedged about with provisions restricting their liability that it becomes a matter of extreme nicety to determine whether or- not such liability exists in a case like the present.

1, 2. It is easy to say that a municipal corporation has no more right to be dishonest than a private individual, but the books are full of cases in which municipal corporations have been permitted by the peculiar provisions of their constitutions to escape liability for acts or omissions for which a private citizen would have been compelled to respond pecuniarily. It is settled, however, in this state that a municipal corporation cannot escape liability for an ordinary tort arising from its negligent acts or omissions, unless its charter or ordinance provides an equivalent remedy against the officer through whose agency or negligence the wrong was. committed. Here the advertisement for bids was inserted by virtue of the provisions of the charter prepared by the city’s agents and was therefore the city’s invitation to bid, and whatever representations it contained were the city’s representations. When the advertisement, by a mistake amounting to negligence, materially understated the amount of embankment which the contractor would be required to construct, it was the city’s misrepresentation; and if the contractor had a right under the circumstances to rely upon it as being approximately correct, and so relying made a ruinous or unprofitable bid, we see no reason, if the other elements necessary to a recovery are present, why the city should not be held liable; and this, not on the ground of a contract or on a quantum meruit for the reasonable value of the labor and expense of the contractor in bringing the embankment up to grade, but as damages for a negli[230]

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Bluebook (online)
199 P. 630, 101 Or. 224, 16 A.L.R. 1125, 1921 Ore. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmberg-v-astoria-or-1921.