Ralph B. Slippy Engineering Corp. v. City of Grinnell

286 N.W. 508, 226 Iowa 1293
CourtSupreme Court of Iowa
DecidedJune 20, 1939
DocketNo. 44767.
StatusPublished
Cited by5 cases

This text of 286 N.W. 508 (Ralph B. Slippy Engineering Corp. v. City of Grinnell) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ralph B. Slippy Engineering Corp. v. City of Grinnell, 286 N.W. 508, 226 Iowa 1293 (iowa 1939).

Opinion

Miller, J.

This is the second appeal to this court herein. For the opinion on the first appeal, see Slippy Eng. Corp. v. City of Grinnell, 224 Iowa 212, 276 N. W. 58.

The first appeal was from the ruling of the district court sustaining a demurrer to counts I and II of the plaintiff’s petition. This court reversed the decision and remanded the case for trial on its merits. Such a trial was had, resulting in a directed verdict in favor of the defendant, City of Grinnell, on certain claims embodied in counts I and II of the plaintiff’s petition, and in favor of the plaintiff on the claims remaining in count I, and on the claims set forth in count III of the petition. The plaintiff alone appeals to this court.

Numerous pleadings have been filed. As they are reviewed in our former decision, we do not undertake to again review them here. Suffice it to say that the action is for compensation for engineering services claimed to have been furnished the City of Grinnell in connection with the construction of certain additions to the city’s sewage disposal plant. In count I of appel *1295 lant’s petition, appellant claims a balance of $1,747.55 due for services rendered between the dates of May 5th and November 30, 1927. In count II, appellant claims a balance of $3,453.20 for services rendered between December 1, 1927 and December 18, 1928. The claims set forth in count III are not material here for the reason that the trial court directed a verdict in favor of appellant, and the city has not appealed from the judgment entered pursuant thereto.

The facts involved herein are unique in some respects, but appear to be established without substantial dispute.

On May 10, 1926, the city council adopted a motion to “hire an engineer to draw plans and specifications for the enlargement of the tank and sludge bed .at the disposal plant and the installment of a trickling filter with an estimate of the cost. ’ ’

On May 25, 1926, appellant made a written proposal to the city council to do such engineering work, which proposal contained three alternate propositions for compensation. One proposition was that its compensation be 7 or 8 per cent of the cost of the improvement. Another proposition was that its compensation be figured on an hourly and per diem basis, payments to be made monthly. The third proposition was on a lump sum basis, as follows:

“Lump Sum Basis
“Completion and delivery of plans and specifications ......................................$1,000.00
“Awarding of Contract, or if this is not done within 90 days after delivery of the plans, payment becomes due ................................. 300.00
“Monthly payments of $300.00 per month during construction. Balance upon completion and acceptance of the construction work to a total for the construction work of..................... 2,000.00
“Total....................................$3,300.00”

On, the same day, to wit: May 25, 1926, the city council adopted a motion to “hire the Ralph B. Slippy Engineering Corporation to reconstruct the sewage disposal plant according to his proposal for the sum of $3,300.00 for the engineering work. ’ ’

Appellant prepared plans and specifications and on Sep *1296 tember 20, 1926, the council instructed the clerk to advertise for bids for the construction of the improvement. On October 18, 1926, all bids were rejected. On November 1, 1926, the city clerk was again instructed to advertise for bids to be opened on November 23, 1926, on which date all bids were again rejected.

In the meantime, on September 6, 1926, appellant was paid $1,000 on its contract, and on December 20, 1926, was paid an additional $300 on its contract.

Nothing further was done about the sewage' disposal plant until April 27, 1927, on which date the council passed a motion that “the city .adopt a trickling filter system for the sewage disposal plant and hire an engineer.to investigate and make recommendations.”

Pursuant thereto, the city clerk wrote, several letters to various engineers, one of the letters dated April 28, 1927, being addressed to-Mr. .Slippy, of appellant corporation, which advised him that the city had-voted to adopt a sprinkling- filter system and to secure an engineer to- investigate and recommend general plans with an estimate as to cost. The letter continued as follows: . . .

“The council does not wish to have prospective éngineers take their time, but if you are interested, you may visit Grinnell, look over the outlet ground, and after investigation put in a bid for engineering on certain general plans, either a flat price or on a percentage basis. These figures with a general plan should be filed with the City Clerk by Monday, May 16th.”

In response to this letter from the city clerk, the appellant, on April 30, 1927, wrote a letter to the city council, stating in part as follows:

“Gentlemen. We are in receipt of a letter from Mr. Lowrey which purports to. be an invitation to bid on the engineering work for your new .disposal plant. Frankly, under the circumstances, we do not understand the letter. Our proposal for the work which you accepted last year was for the entire engineering work on your disposal plant. ' We have had no intimation that you desire to dispense with our'services, as we thought that we still enjoyed your confidence. We consider our contract still in effect. If you desire to employ some other engineers, we will accept to balance of $2,000.00 on our contract and release you, *1297 altho we would much, rather go ahead with you and build the plant ourselves.”

On May 16, 1927, there was a meeting of the city council ‘ ‘ to consider the matter of receiving propositions from engineering companies on the construction of a sewage'disposal plant.” Various engineers were in attendance, including Mr. Slippy, of appellant corporation. Proposals were read from other engineering firms not in attendance. Thé record' does not show what took place other than that the meeting adjourned without any definite action having been taken. On the following day, at a meeting of the city council, a motion was made that “the city reject Mr. Slippy’s plans for the construction of 'a disposal plant.” This motion lost. A motion was then made that'“Mr. Slippy be instructed to change the specifications of the present plans for the sewage disposal plant as the council may suggest and prepare to re-advertise for bids.” This motion carried.

Thereafter,' the plans and specifications were' changed by the appellant, whereby the improvement could be constructed at a substantial reduction in cost. The general effect of the change in the plans and specifications is-described by Mr. Slippy, testifying as a witness, as follows: ...

“The first set of plans contemplated the use of the Imhoff tank as a sludge digestion chamber and’new storing tanks. The second set of plans contemplated the use' of the old Imhoff' tank as a storing tank and the construction of new sludge tank8.”

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286 N.W. 508, 226 Iowa 1293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ralph-b-slippy-engineering-corp-v-city-of-grinnell-iowa-1939.