Reilly v. Rodef Sholem Congregation

90 A. 345, 243 Pa. 528, 1914 Pa. LEXIS 657
Supreme Court of Pennsylvania·Decided January 5, 1914·No. Appeal, No. 119·Published·Cited by 2 cases

Opinion

Opinion by

Mr. Justice Potter,

In this action of assumpsit the plaintiff sought to recover the balance due him from the defendant upon a contract for. the erection of a synagógué. In his statement of claim the plaintiff averred performance of the work in accordance with the contract, by reason of which he became entitled to payment of the contract price of $184,636.60; and the further sum of $8,009.30 for [530] extra work, making a total of $192,645.90; on account of wliicli lie had been paid $140,304.98 in cask and by certain allowances, leaving a balance as claimed by plain-' tiff of ,$52,340.92. After suit was brought defendant paid plaintiff additional sums aggregating $32,874=.61. This reduced the amount claimed to $19,466.31. Same discrepancy is apparent, however, as the trial judge stated in his charge to the jury that the balance claimed was $17,599.85. Against this balance defendant claimed t'o be entitled to the sum of $12,000 as liquidated damages for delay in the completion of the building. Under the contract* plaintiff was required to completé the auditorium by September 1, 1906, and the whole of the work by November 1, 1906, and it was stipulated that for every day’s delay in the completion of the work beyond these dates, plaintiff should pay the sum of. $1*00 to defendant as liquidated damages. The work was'to be done to the satisfaction of the architects, and this clause appears in the contract, “To prevent all disputes and litigation the architects shall in all cases determine the amount or the quality of the several kinds of work which are to be paid for'under this contract, and they shall determine all questions relative to said work ¿nd the construction thereof; and they shall in all cases decide every question which may arise relative to the execution of this contract on the part of the contractor, and their; estimate and decision shall be final, conclusive and binding, without exception or appeal, and such estimate and decision, in case any question shall arise, shall be a condition precedent to the right of the contractor to receive any money under this agreement.” The work was not completed until September 1, 1907, ánd the architects decided that óf this delay one hundred and twenty days were properly chargeable to the plaintiff under the terms of the contract, at one hundred dollars a day, aggregating the sum of $12,000. Upon the trial the court below admitted the award of the architects in evidence and excluded an offer by plaintiff to show that the delay in. [531] completing the building was chargeable chiefly to the delay of the architects in furnishing certain necessary detailed drawings. The trial judge instructed the jury that credit must be allowed to the defendant for the $12,000 damages awarded by the architects, and limited the verdict for the plaintiff to an amount not larger than the difference between that sum and the balance claimed. Under these instructions the jury found a verdict in favor of plaintiff for $5,161.71 on which judgment was subsequently entered. Plaintiff has appealed and his counsel have filed two assignments of error. The first is to the admission in evidence of the award of the architects, and the other is to the exclusion of testimony tending to show that the delay in the completion of the building was due chiefly to the failure of the architects to furnish detailed drawings necessary to the performance of the work. The language of the contract with reference to the power of the architects is very broad. They were authorized to determine all questions in relation to the work and the construction of the contract and to decide every question which might arise relative to its execution. Under our decisions, however, as will appear further on, the authority of the architects is not to be extended so as to permit them to pass upon the question, of whether they were themselves at fault. The general principle, that an agreement to arbitrate will be sustained, is clearly established. In Conneaut Lake Agricultural Association v. Surety Company, 225 Pa. 592, we said (p. 596) :

“It is firmly settled by the law of Pennsylvania that agreements to refer disputes to arbitration, will be sustained and upheld, where the power to pass upon the subject-matter in dispute, is clearly given to the arbitrator, by the terms of the agreement: Hunn v. Penna. Institution for Inst. of Blind, 221 Pa. 403; Somerset Boro. v. Ott, 207 Pa. 539,” and in Ruch v. York, 233 Pa. 36 (p. 45), our Brother Mestrezat said: “It is settled in this State that the parties to a building or construction [532] contract may legally provide therein that disputes arising out of the contract shall be submitted for decision to the architect or engineer, and that his conclusion or judgment shall be a final adjudication of the questions submitted. Such submission may include the power to determine the right of the parties to liquidated damages under the terms of the contract.” Under these and many other cases which might be cited it is clear that the award of the architects and the certificate issued by them was properly admitted in evidence, by the court below. The first assignment is overruled.

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Reilly v. Rodef Sholem Congregation, 90 A. 345, 243 Pa. 528, 1914 Pa. LEXIS 657 (Pa. 1914).

90 A. 345 (Reilly v. Rodef Sholem Congregation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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