R. Lee Tolley Co. v. Marr

12 Tenn. App. 505
CourtCourt of Appeals of Tennessee
DecidedJuly 1, 1931
StatusPublished
Cited by3 cases

This text of 12 Tenn. App. 505 (R. Lee Tolley Co. v. Marr) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R. Lee Tolley Co. v. Marr, 12 Tenn. App. 505 (Tenn. Ct. App. 1931).

Opinion

PORTRUM, J.

The R. Lee Tolley Company was employed by Walter L. Marr to construct a house for him on Signal Mountain, near Chattanooga, Tennessee. Some time before the house was completed, Marr discharged the Tolley Company; thereupon the Tolley Company brought suit for damages. The defendant Marr filed an answer and a cross-bill, claiming that he had a right to discharge Tolley; denying the Tolley Company’s right to recover on account of various defects in construction, and charging that it had cost him greatly in excess of the contract price to have the house completed by other parties, and praying for judgment against the Tolley Company and its surety on its bond for the excess.

The chancellor decreed that the contracting company had been wrongfully discharged, and dismissed Marr’s answer and cross-bill. He held, however, that the brick work on the house had not been constructed in accordance with the contract and decreed that there should be deducted from Tolley’s contemplated profit, if any, the cost of tearing down the brick work to the water table and rebuilding. Prom this portion of the chancellor’s decree, Tolley Company appealed, and from that portion holding that the Tolley Company had been wrongfully discharged, the defendant Marr appealed.

The question of the breach of the contract and who breached it turns upon a construction of the provision of the contract. The contract is composed of several documents, namely the agreement (made out on a form, prepared and recommended by the American Institute of Architects); general conditions, being a printed document of many articles prepared by the Institute of Architects; the plans, consisting of eleven sheets of drawings, prepared by J. B. Alsup, the architect; and the specifications consisting’ of fourteen pages of typewriting prepared by the architect.

The portions of the contract deemed pertinent to the inquiry are set out:

“Art. 38. The architect shall have general supervision and direction of the work." He is the agent of the owner only to the extent provided in the contract documents and when in special instances he is authorized by the owner so to act, and in such instances he shall, upon request, show the contractor written authority. He has authority to stop the work whenever such stoppage may lie necessary to insure the proper execution of the contract.

“As the architect is, in the first instance, the interpreter of the conditions of the contract and the judge of its performance, he shall side neither with the owner nor with the contractor, but shall use his powers under the contract to enforce its faithful performance by both.

‘ ‘ In case of the termination of the employment of the architect, the owner shall appoint a capable and reputable architect, whose status under the contract shall be that of the former architect.

[507]*507“Art. 39. The architect shall, within a reasonable time, make decisions on all claims of the owner dr contractor and on all other matters relating to the execution and progress of the work or the interpretation of the contract documents.

“Except as above or as otherwise expressly provided in the contract documents, all the architect’s decisions are subject to arbitration.

“Art. 40. ARBITRATION. .All questions subject to arbitration under this contract shall be submitted to arbitration at the choice of either party to the dispute.

‘ ‘ The demand for arbitration shall be filed in writing with the architect, in the case of an appeal from his decision, within ten days of its receipt and in any other case within a reasonable time after cause thereof and in no case later than the time of final payment, except as otherwise expressly stipulated in the contract. If the architect fails to make a decision within a reasonable time, an appeal to arbitration may be taken as if his decision had been rendered against the party appealing. .

“Unless otherwise provided by controlling statutes, the parties may agree upon one arbitrator; otherwise, there shall be three . . .

“If there be one arbitrator his decision shall be binding. Such decision shall be a condition precedent to any right of legal action, and wherever permitted by law it may be filed in court to carry it into effect.

“The award of the arbitrators shall be in writing and it shall not be open to objection on account of the form of the proceeding or the award, unless otherwise provided by the controlling statutes.

“In the event of such statutes providing on any matter covered by this article otherwise than as hereinbefore specified, the method of procedure throughout and the legal effect of the award shall be wholly in accordance with the said statutes, it being intended hereby to lay down a principle of action to be followed, leaving its local application to be adapted to the legal requirements of the jurisdiction having authority over the arbitration.

“ART. 22. OWNER’S RIGHT TO TERMINATE CONTRACT. —If the contractor should be adjudged a bankrupt, or if he should make a general assignment for the benefit of his creditors, or if a receiver should be appointed on account of his insolvency, or if he should persistently or repeatedly refuse or should fail, except in cases for which extension of time is provided, to supply enough properly skilled workmen or proper materials, or if he should fail to make prompt payment to subcontractors or for material or labor, or persistently disregard laws, ordinances or the instructions of the architect, or otherwise be guilty of a substantial violation of any provision of the contract, then the owner, upon the certificate of the architect that sufficient cause exists to justify such action, may, without prejudice to any other right or remedy and after giving the contractor [508]*508seven days’ written notice, terminate the employment of the contractor and take possession of the premises and of all materials, tools and appliances thereon and finish the work by whatever method he may deem expedient. In such case the contractor shall not be entitled to receive any further payment until the work is finished. If the unpaid balance of the contract price shall exceed the expense of finishing the work including compensation for additional managerial and administrative services, such excess shall be paid to the contractor. If such expense shall exceed such unpaid balance, the contractor shall pay the difference to the owner. The expense incurred through the contractor’s default, shall be certified by the architect.

“Art. 15. CHANGES IN THE WORK:- — The owner, without invalidating the contract, may order extra work or make changes by altering, adding or deducting from the work, the contract sum being adjusted accordingly. All such work shall be executed under the conditions of the original contract except that any claim for extension of time caused thereby shall be adjusted at the time of ordering such change.

“In giving instructions, the architect shall have authority to make minor changes in the work, not involving extra cost, and not inconsistent with the purposes of the building, but otherwise, except in an emergency endangering life or property, no extra work or change shall be made unless in pursirance pf a written order from the owner signed or countersigned by the architect, or a written order from the architect stating that the owner has authorized the extra work or change, and no claim for an addition to the contract sum shall be valid unless so ordered.”

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Bluebook (online)
12 Tenn. App. 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-lee-tolley-co-v-marr-tennctapp-1931.