Petersen v. City of Omaha

231 N.W. 763, 120 Neb. 219, 1930 Neb. LEXIS 187
CourtNebraska Supreme Court
DecidedJuly 17, 1930
DocketNo. 27311
StatusPublished
Cited by3 cases

This text of 231 N.W. 763 (Petersen v. City of Omaha) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petersen v. City of Omaha, 231 N.W. 763, 120 Neb. 219, 1930 Neb. LEXIS 187 (Neb. 1930).

Opinion

Rose, J.

This is an action by contractors to recover a balance due them on their contract to construct Grace street storm sewer in Omaha for $124,029.20. H. J. Petersen and James Jensen were contractors and are plaintiffs. The city of Omaha is defendant. Claims for the unpaid balance due on the contract were presented by plaintiffs to the city council and disallowed. They appealed to the district court where a judgment was entered in their favor for $2,801.49. This sum is composed entirely of interest amounting to $842.33 on delayed payments as the work progressed and of an item, listed in the contract under the head of “Extras,” for sheeting lumber left in the trench by order of the city engineer, the amount of the latter item as allowed by the district court being $2,052.24 for 34,204 feet at $60 a thousand, board measure, and interest thereon in the sum of $406.92 from November 1, 1926, to September 1, 1929, or $2,459.16, principal and interest. From the judgment in favor of plaintiffs for $2,801.49, defendant has appealed.

[221]*221The allowance of interest is challenged by defendant as erroneous. On the other hand, plaintiffs take the position that they were entitled to recover interest on account of delays in payments when due after the .sewer was completed and accepted, citing, among other cases, Murphy v. City of Omaha, 33 Neb. 402.

The contract was executed September 19, 1925, and the sewer was completed October 25, 1926. The contract does not contain in direct terms a provision for the payment of interest. On estimates plaintiffs were entitled to payments as the work progressed. Measured by stipulated compensation for completion of the sewer itself, there was a balance of $33,722.45 due plaintiffs October 25, 1926. Defendant made estimates and corresponding payments therefor ;as follows: January 7, 1927, $15,093.90; September 12, 1927, $11,935.43; September 19, 1927, $6,693.12; total, $33,-722.45, excluding interest. For delays in making payments during the progress of the work, were plaintiffs entitled to interest ? Prior to the payments' made, was the city in default within the meaning of the statutes creating a liability for interest and entering into the contract for the improvement? While the sewer was completed and aceept- • ed October 25, 1926, plaintiffs had not then fully performed their contract, which must be considered in its entirety. It contained provisions requiring them to protect the city against damages resulting from excavations and authorized •the city to indemnify itself by temporarily withholding payments. As a result of the excavating for the sewer, the surface of a paved street fell below the established grade. Street car tracks were injured. Curbs and sidewalks were disturbed. Owners of adjacent property complained of injuries. Claims for damages were presented to defendant. ' To ascertain the extent of such damages the city conducted an official investigation and its officers made a tentative estimate of $7,000 to replace the pavement and of $11,000 to cover the claims of property owners. Funds in control of the city for payment of the contractors were released as the claims for damages were paid, adjusted or abandoned. Though plaintiffs appear to have been diligent in adjusting [222]*222such claims, their own testimony shows that they commenced to restore the pavement April 30, 1927, and did not complete it until June 20,1927. There is testimony tending to show that the broken pavement was not completely restored until September 2, 1927, just 17 days before the final estimate of $6,693.12 due plaintiffs was made. It may fairly be inferred that the city did not previously know the exact, amount payable to plaintiffs under the contract as a whole-in view of its right to withhold payments as contractual indemnity for damages. The exact amount which the city should release for payments to plaintiffs was not ascertainable while claims for unliquidated damages were pending. There is nothing to show bad faith of defendant in temporarily withholding payments for indemnity. There-was no evidence of unreasonable delay. In the meantime the city was not in such default as creates a liability for interest on delayed payments. With the exception of the final estimate, plaintiffs accepted all payments as the work progressed without making any demand for interest. The-law applicable has been stated as follows:

“It may be stated as a general rule, however, that interest is not allowed on unliquidated damages or demands, for the reason that the person liable does not know what sum Jie owes, and therefore can be in no default for not paying. The damages in such cases are generally of an uncertain quantity, depending upon no fixed standard, and can never be made certain except by accord or verdict or decree; and hence, where this is the condition, they are not allowed, either in actions arising from a breach of contract, or on .tort.” 8 R. C. L. 533, sec. 86. See, also, note in 3 A. L. R. 809-819.

Murphy v. City of Omaha, 33 Neb. 402, cited by plaintiffs is not controlling on this feature of the present case. Plaintiff therein had fully performed the contract. The amount ¡then due was definitely known. The city had no right to withhold payments for indemnity against damages. There ¡was no justification for non-payment or delay upon completion and acceptance of the work.

[223]*223The conclusion is that the trial court erred in allowing interest to the extent of $342.33 on the delayed payments mentioned, excluding the claim for lumber.

. Was the claim for sheeting lumber left in the trench by •order of the city engineer a valid obligation of the city in .addition to the contract price of $124,029.20 for the construction of the sewer? The bid of plaintiffs was made on •a form which the city required them to use and is a part of the contract. Under the separate head “Extras,” following a line calling for a bid on lumber per thousand feet, board measure, the entry was “60,” written in a column under “dollars.” Bids were specifically required on every item. This bid was accepted as made. The specifications are also parts of the contract and one of them contains printed matter in the following language:

“Sheeting left in permanently under direction of the city •engineer, and only such, will be paid for at- the price bid.”

On a blue print constituting a portion of the plans for the improvement, and also a part of the contract, are -the following entries on the margin:

“Sheeting and Bracing: No extras will be allowed for sheeting and bracing left in the sewer trench and in tunnel.

“Bracing that may be required in the tunnel shall be included in the price bid per lin. ft. of sewer and no extras will be allowed for same or for the placing of same.” Defendant contends that the foregoing wording copied from the plans is in writing and that the written provisions introduced by the catchwords “Sheeting and Bracing” preyail over inconsistent terms of the printed matter quoted from the specifications. .In other words, the contention is that expressions disallowing, as extras, payments for sheeting and bracing left in the trench and including the price therefor in the bid for constructing the sewer by the lineal foot prevail over the accepted bid for such lumber at $60 per thousand feet and also prevail over the printed specification that payment therefor will be made on the basis of the price bid for extras. In this connection defendant invokes the following statutory rule:

[224]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

New Masonic Temple Ass'n v. Globe Indemnity Co.
279 N.W. 475 (Nebraska Supreme Court, 1938)
Jensen v. Romigh
274 N.W. 199 (Nebraska Supreme Court, 1937)
City of Scottsbluff v. Western Public Service Co.
254 N.W. 712 (Nebraska Supreme Court, 1934)

Cite This Page — Counsel Stack

Bluebook (online)
231 N.W. 763, 120 Neb. 219, 1930 Neb. LEXIS 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petersen-v-city-of-omaha-neb-1930.