Road Improvement Dist. No. 5 of Crittenden County, Ark. v. Roach

18 F.2d 755, 1927 U.S. App. LEXIS 2050
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 24, 1927
DocketNo. 7542
StatusPublished
Cited by10 cases

This text of 18 F.2d 755 (Road Improvement Dist. No. 5 of Crittenden County, Ark. v. Roach) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Road Improvement Dist. No. 5 of Crittenden County, Ark. v. Roach, 18 F.2d 755, 1927 U.S. App. LEXIS 2050 (8th Cir. 1927).

Opinion

STONE, Circuit Judge.

Appeal from a decree, in an action for an accounting, allowing recovery against appellant for balance found due under a construction, contract.

Appellees graded certain roads for appellant under a written contract. Up to January 1, 1920, 1. R. Packard was engineer for appellant. He was then replaced by the Morgan Engineering Company. This action was for a balance of $40,891.22, due on work doné up to January 1, 1920, and a balance of $14,312.44, for work done thereafter.

The dispute of fact was as to the amount of work done. The master found, by other evidence, that the estimates of work made by Packard of work done under him, were correct; that the estimates of work done thereafter, as made by the Morgan Engineering Company, were correct; that certain additional work had been done for which payment should be made and reported recovery for such total. The Morgan Engineering Company had made an estimate of the work done during the Packard period, which estimate was much less than the estimate of Packard and other testimony tended to show.

The first contention of appellant is that the estimate of Morgan Engineering Company as to all the work was, under the terms of the contract, binding upon appellees. The provisions of the contract thus relied on are as follows:

“Section 53. Engineer to be Referee. The engineer shall have full supervision over the entire work, and his decision as to quality of material, construction and rate of progress of said work and the meaning of all drawings and specifications shall be final and conclusive. He shall determine the amount and quantity of the work of the several kinds performed, materials furnished which are to be paid for under the contract, in case any question shall arise, shall be a condition precedent to the right of the contractor to receive any money due under the contract. All orders and instructions to the contractor shall be given by the engineer.”

“Section 63. Scope of Payments. The payment of any current or final estimate or of any retained percentage shall in no way, and in no degree, prejudice or affect the obligation of the contractor, at his own cost and expense, to repair, correct, renew or replace any defects or imperfections in the construction ol the roadway and its appurtenances; or in the strength of, or quality of materials used therein or thereabout, or relieve the contractor from the payment of any and all damages due or attributable to such defects; provided such defects, imperfections, or damages shall be discovered on or before the final inspection or acceptance of the road. And the findings of the board and the engineer in this respect shall be final.”

“Section 65. Approval and Final Payment. Upon a request from the contractor for a final inspection of all work done under his contract, the engineer shall make such, a final inspection of the entire roadway and upon completion of all necessary repairs or renewals he shall certify to the ‘board’ and the ‘chairman’ in writing as to said completion, and shall further certify as'to the en[758]*758tire amount of each class of work performed and as to the value thereof. The ‘board’ and ‘chairman,’ upon receipt of said certificate, shall in turn certify the aforesaid certificate or estimate to the ‘treasurer* for final payment and shall notify the contractor and his surety of the acceptance of the road. The action of the ‘board’ and ‘chairman’ and engineer by which the contractor is to be bound and concluded according to the terms of the contract, shall be evidenced by the aforesaid certificate and final payment, all prior certificates or estimates upon which payments may have been made being merely partial estimates and subject to correction in the final payment.”

In connection with the above provisions should be considered the provision following:

“64. Partial Payments. Payments will be made upon the engineer’s estimate for the work done: Provided, however, that no estimate shall be made except after the first of each month during the progress of the work, and that payments will be due on such estimates on or before the tenth of the month in which the estimate is made. Estimates will be base'd upon the amount of work done at the time of making the estimate. Eighty-five per cent, of the amount of such estimate will be allowed the contractor, the balance to be retained by the board until the final estimate is allowed, previous estimates being deducted.”

Appellant claims that the above contract provisions make the estimates made by its engineer conclusive and that the particular engineer intended is the person who happens to be such at the time the final estimate was made. Appellees claim that the estimates of the engineer, at the time the particula/r work was done, control.

The court overruled exceptions filed by each party to the report and decreed recovery. The master in his “Conclusions of Law” stated:

“The respective parties have cited authorities to sustain the proposition that the estimates of an engineer are, under a contract such as is involved in this ease, conclusive in the absence of fraud, or gross mistake. The real point in issue is, the estimates of which engineer are to be given this binding effect? Presumably the plaintiffs contend that it is applicable to Packard but not to the Morgan Engineering Company, while the defendant contends that the rule is applicable only to the estimates of the Morgan Engineering Company. Neither position, in my judgment, can be sustained.”

While the master stated that he did not agree with either contention, his determination was, in effect, to adopt the view that the estimate of the engineer at the time the work was done was controlling. Further on in his conclusions, the master states:

“At the time the contract was entered into Packard was the engineer for the district, selected by the district, and was its representative. The contract signed by the parties bears his name, and, therefore, the parties both knew at the time the contract was entered into that Packard was the engineer, and it is to him that the provisions of the contract with respect to the power of the engineer is referable. It is easy to see that a contractor might be willing to enter into a contract where Jones is the engineer, and unwilling to enter into it if Smith were the engineer. Packard, the original engineer, was discharged by the defendant without the consent, or approval, of the plaintiffs, and the defendant, arbitrarily, upon their own motion and without the consent of the plaintiffs, appointed the Morgan Engineering Company. Therefore, it is clear to my mind that the estimates of the Morgan Engineering Company would not have the finality that the estimates of the original engineer would have. This, therefore, disposes of the defendant’s contention with respect to the finality and binding effect of the Morgan Engineering Company’s final estimate.

“It does not, however, necessarily mean that the estimates of the Morgan Engineering Company on work done subsequent to ( January 1, 1920, should be disregarded. In fact I think that their estimates for that period should be accepted, for there is nothing in the evidence to show that they were incompetent, or incapable of measuring dirt as it was being put into the embankment.”

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Bluebook (online)
18 F.2d 755, 1927 U.S. App. LEXIS 2050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/road-improvement-dist-no-5-of-crittenden-county-ark-v-roach-ca8-1927.