Potter v. City of Coatesville

297 F. 230, 1922 U.S. Dist. LEXIS 993
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 13, 1922
StatusPublished
Cited by3 cases

This text of 297 F. 230 (Potter v. City of Coatesville) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potter v. City of Coatesville, 297 F. 230, 1922 U.S. Dist. LEXIS 993 (E.D. Pa. 1922).

Opinion

DICKINSON, District Judge.

The verdict in this case was for the plaintiff. Notwithstanding this, the motion is by the plaintiff. The explanation lies in the trial fact that the larger part of the plaintiff’s claim was thrown out of consideration by the jury following a ruling of the trial-judge. The verdict was a directed verdict. Plaintiff in consequence has the right to any inference which might have been drawn in his favor.

The real question is the construction of a contract. Plaintiff was making wha.t were two claims in one action. For one of these he recovered, with the acquiescence, for trial purposes., of the defendant. We may, because of this, disregard this part of the claim, and consider the cause of action which the plaintiff was asserting as if it were wholly the one which was rejected. The fact situation out of which the respective rights of the parties arose is simple enough in its broad outlines, but, to present the point upon which the ruling of the cause pivots, we must go to some extent into the details.

The city (then the borough) of Coatesville was confronting the water and sewerage problem, which so many of the municipalities of this commonwealth now face. In order to cope with it, the borough authorities were in need of the services of a resourceful and experienced engineer. They found the man of whose services they were in need in [231]*231the person of the plaintiff. The first thing, to he done was to have a definite arrangement with him respecting his services. He and the borough accordingly entered into a contract, into the details of which it is unnecessary to go, further than to state that he was to do everything required of an engineer to be done up to the time of the full completion of the work to be done for the borough. It was, of course, in the contemplation of both the parties to the contract, that the plaintiff and the defendant would be then done with each other so far as affected their contractual relations.

The work to be done was of a kind which constitutes what, now goes, under the phrase of “public works.” All work of this character has been brought under the control and subjected to regulations of the state authorities. Out of this grew the necessity of securing permits before the borough could proceed with parts of the work which were in 'contemplation. This meant that the plans for the work, with full or at least descriptive specifications, should be prepared by the plaintiff as the responsible engineer and submitted to the proper state authorities for their approval before permits for the work would go out. This was in the mind of both parties in this case, and provision was made for it in the contract into which they entered. The plaintiff was to secure the required permits.

Passing a number of intermediate steps to be taken, an important thing to be done was to submit the plans and specifications to prospective bidders, to ask for bids and to award the contract. All these things were also in the minds of the parties and provided for in their contract, and were in due course done. Another thing was to have the work called for by these contracts actually done to the satisfaction and acceptance of the borough authorities. There was no one general contract, but a number of different contracts, each relating to some part of the whole work. This involved inspection and supervision of the work done by the several contractors as it progressed. This was also in the minds of the parties to this suit and provided for in their icon-tract. The plaintiff was to do this work of supervision. When the compensation which the plaintiff was to receive for all the very responsible services which he ^iad agreed to render came to be fixed, a highly important element which entered into it was that of time. When the parties to this suit made their bargain, this feature was covered by the provision before mentioned, that he was to render services until the full completion of the work. Compensation in the money sum sense was to be measured by a fixed percentage of what the total cost of the whole work to the borough was found to be.

When the construction contracts came to be drafted, the time limit of performance again became important. That any work which must await the action of public officials will take time is such a notorious truth that it is fair to assume it was in the mind of the parties both to the contract between the plaintiff and defendant and also the parties to the construction contract. At all events a time limit was incorporated into the construction contracts, which was thought by every one to be ample time in which to complete the work. When, however, the contracts came to be put into shape by the then borough solicitor, it oc[232]*232curred to him, in the exercise of that practical wisdom which lawyers sometimes display, that the contract work might overrun the contract time. Following this thought he interpolated claims into the contract to cover it. One was the addition in clause 13 of the phrase (relating to additions to the contract work) “when ordered by” the state authorities. Fie also inserted what is now clause 21 of the contract. This, with clauses 22 and 28, admittedly presents the turning point of this case, for the meaning which these clauses (and really clause 21) have determines the question of the right of the plaintiff to recover.

With this thought in mind, let us recapitulate the fact features of the then situation. The borough in practical necessity must have the construction work supervised, inspected, and its merits judged. This would cost money. The borough had made provision for all such expense, in the expectation that it would be relieved of it on or before the expiration of the contract time. The contractors had agreed to complete the work within that time. Notwithstanding this, however, there was the possibility that the work might not be completed in time, and the clauses in question were intended to cover this contingency. The contractors agreed to assume and pay all the expenses which might be incurred because of their default. All that then remained was to give it definiteness, and this was done, not by any named sum, because no sum could then be named; but it was measured on a per diem basis, by what would be the equivalent per diem allowance which the borough had already arranged to pay.' This was satisfactory to all parties and was carried into clause 21 and these other clauses.

The contractors did in fact overrun their contract time. This practically compelled the plaintiff to render services, and he did render services, after the expiration of the time limit of the construction contracts, but not after the completion of the work.. The borough paid the plaintiff the agreed commission stipulated in its contract for all services rendered by him up to “the completion of the work.” They, however, neither held back from the contractor nor paid the plaintiff anything (other than the stipulated commission) for the time the work was protracted beyond the contract time.

The claim of the plaintiff is not merely for the additional time he was thus compelled to give to the work beyond the time stipulated in the construction contracts, but for much more. This results from the fact, already stated, that there were several construction contracts all going on at the same time, each with the like clause 21, and each of which overran the contract time. The plaintiff in consequence claims what might have been deducted from all the contractors as if each had been the only one who defaulted on his time contract.

The claim is asserted to have a twofold legal basis.

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United States v. Decker
51 F. Supp. 15 (D. Maryland, 1943)
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Potter v. City of Coatesville
297 F. 237 (Third Circuit, 1924)

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Bluebook (online)
297 F. 230, 1922 U.S. Dist. LEXIS 993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-city-of-coatesville-paed-1922.