Richmond Engineering & Manufacturing Corp. v. Loth

115 S.E. 774, 135 Va. 110, 1923 Va. LEXIS 5
CourtSupreme Court of Virginia
DecidedJanuary 18, 1923
StatusPublished
Cited by35 cases

This text of 115 S.E. 774 (Richmond Engineering & Manufacturing Corp. v. Loth) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richmond Engineering & Manufacturing Corp. v. Loth, 115 S.E. 774, 135 Va. 110, 1923 Va. LEXIS 5 (Va. 1923).

Opinion

Sims, J.,

after making the foregoing statement, delivered the following opinion of the court:

The material questions presented by the assignments and cross-assignments of error will be disposed of íd their order as stated below.

[139]*139As stated in the brief of counsel for the defendant, Loth—

1. “The main question at issue is what construction should be put upon the letter” of April 2, 1913; is it to be construed as a promise of Loth, binding him to pay the unpaid subcontractors and material men not only the money then owing and subsequently becoming due, which Loth might owe upon a final settlement with the general contractor, but also whatever money was then owing and that should subsequently become due to the unpaid subcontractors and material men from the general contractor, even though Loth might not owe the general contractor a sufficient balance upon final settlement to cover such money?

The question must be answered in the affirmative.

The inquiry involves the consideration of “the relation that must exist between volition (or intention) and expression,” as affecting the interpretation of acts which are essential to the formation of a contract, which Mr. Wigmore characterizes as “the world-old legal problem, inevitably faced in the history of every jurisprudence.” 4 Wigmore on Ev., sec. 2404. The breadth and profundity of the subject and the ability with which the volitional side of the problem has been urged in argument for the defendant in the causes before us (that side being too much emphasized by such argument, as we think), seem to warrant the somewhat extended quotations which we shall hereafter make of some concrete conclusions from a learned work on Contracts, which we believe to be correct in principle and in accord with the almost, if not quite, unanimous holding of modern decisions, and which, too, are on the whole in accord with the views of Mr. Wigmore on the subject when those views are all considered together. The great length with which the latter learned author has treated [140]*140this subject renders it impracticable for us to convey his meaning by quotations within the space available to us.

In 2 Williston on Contracts, sees. 603, 604, 605, 607, 810, this is said:

See. 603. “In order to determine the legal meaning of a contract a ‘standard of interpretation,’ to use Wig-more’s helpful phrase, must first be established—that is the code by which the meaning of the language and acts of the parties is to be defined.' It is useless to talk of the ‘meaning’ of a contract unless it is known whose meaning is sought; and this inquiry, as will be seen, cannot be disposed of by the answer—the meaning of the parties. Wigmore distinguishes four possible standards: ‘The standard of the community, or popular

standard, meaning the common and normal sense or words; the local standard, including the especial usages of a religious sect, a body of traders, an alien population, or a local dialect; the mutual standard, covering those meanings which are peculiar to both or all.parties to a transaction, but shared in common by them; and the individual standard of one party to an act as different from that of the other party or parties, if any.

“A slightly different further standard may, however, be supposed for a bilateral transaction. This standard is the sense in which the party using the words should reasonably have apprehended that they would be understood by the other party * *

Sec. 604. “Different standards of interpretation must be applied to different classes of contracts.

“The standard of interpretation adopted by the law depends on the character of the contract under consideration. In one division must be put not only formal contracts, such as sealed instruments and negotiable paper, but also contracts where the parties have agreed [141]*141on a writing or other fixed symbol as a memorial or integration of the agreement. In this class must also be put contracts of which the law requires a written memorandum. Snch a memorandum need not necessarily be an integration or memorial of the contract; but the purpose of the law in requiring written evidence can only be satisfied if the same standard is applied to memoranda under the statute as is applicable to written contracts. (Last italics supplied.),

“In the second division must be put all other contracts. * *”

Sec. 605. “In contracts of the second class, the standard of interpretation which the modern law tends to accept, and which is supported by sound principle, is that suggested at the end of section 603; namely, the sense in which the party who used the words in question should reasonably have apprehended that the other party would understand them.”

Sec. 607. “Standard of interpretation where a writing has been adopted.

“According to the weight of authority and on principle, when the parties have assented to a writing as an expression of their agreement, or where a writing is required by law, the standard of interpretation is the local standard—that is, the natural meaning of the writing to parties of the kind who contracted, at the time and place where the contract was made, and with such circumstances as surrounded its making. * *” (Last italics supplied.)

Sec. 810. “The intent of the parties, where the contract is written, is ineffectual unless expressed in the writing.

“The mental intent of the parties to a contract may be inadequately expressed in two kinds of cases which it is important to differentiate in discussing interpretation.

[142]*142“1. There may be an' intent which is wholly unexpressed, whatever standard of interpretation be adopted. It is not only possible but common for a party to fail to express by the language he uses what he intends to express. He would himself admit this if the deficiency in his language were pointed out to him. A lawyer who has attempted to draw a complicated trust or contract, knows how easy it is to omit to provide for one of many possible contingencies which he intends to cover.

“2. The intent may be inadequately expressed, but the language of the writing though not naturally bearing the sense intended by the one who used it, if the words are taken individually, whether they are interpreted according to the normal standard, or even according to the local standard, nevertheless indicates the intent by the general tenor and purpose of the contract if taken in connection with surrounding circumstances. Cases which fall under these two headings doubtless shade into one another. Nevertheless the distinction is a real one, and it may be said without qualification that if the parties have made a memorial of their bargain, or a writing is required by law, their actual intent unless expressed in some way in the writing is ineffective, except when it can be made the basis for reformation of the writing. It is true' that it is commonly said that the court in the interpretation of contract is endeavoring to find the intention of the parties. The natural meaning of this language is that the court is endeavoring to find as a controlling factor what, as has just been seen, may be wholly ineffectual. In contracts of which no memorial is made, and no writing required by law,

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Bluebook (online)
115 S.E. 774, 135 Va. 110, 1923 Va. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richmond-engineering-manufacturing-corp-v-loth-va-1923.