Ross v. McArthur Bros.

52 N.W. 125, 85 Iowa 203
CourtSupreme Court of Iowa
DecidedMay 17, 1892
StatusPublished
Cited by12 cases

This text of 52 N.W. 125 (Ross v. McArthur Bros.) 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
Ross v. McArthur Bros., 52 N.W. 125, 85 Iowa 203 (iowa 1892).

Opinion

Given, J.

I. The contract between the appellant and McArthur Bros, contains this clause: “Second. The work shall be executed under the direction agreement: when ' and supervision ot the chief engineer ot said railway company, and his assistants, by whose measurements and calculations the quantities and amounts of the several kinds of work performed under this contract shall be determined, and whose determination shall be conclusive upon the parties thereto. * * * Said engineer shall decide every question which can or may arise between the parties in the execution of this contract, and his decision shall be binding and final upon both parties; and whereas, the classification of excavation provided [206]*206for in the annexed specification is of a character that makes it necessary that special attention should be called to it, it is expressly agreed by the parties to this contract that the classifications, measurements, and calculations of said engineer of the respective quantities of such excavations shall be final and conclusive.” The relief asked is a correction of the estimates made by the engineer, and recovery of the balance due. The ground alleged for such relief is that the estimates were wrongfully, falsely and fraudulently made. The appellant contends in argument' that the agreement to submit to the decisions of the engineer is not valid, or a bar to his right to sue for the work done, for the reason that such an agreement ousts the court of jurisdiction. It would be a sufficient answer that the appellant has. not pleaded this as a ground for'relief, but we add that the authorities are quite uniform in recognizing such contracts as valid and binding. See M. & P. R’y Co. v. March, 114 U. S. 549, 5 Sup. Ct. Rep. 1035; 1 Redf. R. R. 435; 1 For. R. R. 462; Herrick v. Belknap, 27 Vt. 673; Crumlish v. Railroad, 5 Del. Ch. 270; Snell v. Brown, 71 Ill. 133; Grant v. Railroad, 51 Ga. 348; Faunce v. Burke, 16 Pa. St. 469; Wood v. Railroad, 39 Fed. Rep. 52; Flynn v. D. M. & St. L. R’y. Co., 63 Iowa 491; Meyers v. Pacific Construction Co., 27 Pac. Rep. (Ore.) 584. The appellant cites Reed v. Washington Insurance Co., 138 Mass. 575, and Gere v. Council Bluffs Insurance Co., 67 Iowa 273, wherein it is held that, under an agreement to submit to arbitration, a submission is not a condition precedent to the maintenance of an action, for the reason, among others, that the agreement to arbitrate is revocable at any time before executed, and the bringing of an action amounts to a revocation. The former case expressly recognizes such an agreement as valid and binding when an appraisal or award has been made under it. Under the rule recognized in the [207]*207authorities cited, and others that might be added, these parties are concluded by the estimates of the engineer, unless they are shown to have been made as alleged, namely, wrongfully, falsely or fraudulently.

II. We next inquire, whether the estimates were wrongfully, falsely, or fraudulently made in either of the respects claimed. “The.plaintiff complains of the estimates in the following particulars: First. Classification of his work, whereby he was estimated and allowed seven and one-half cents per yard as for earthwork, when a large amount of it was, under the contract and specifications, loose rock, to be paid for at thirty-five cents per yard. Second. He was estimated, allowed and paid for work by the monthly estimates, which was afterwards wrongfully deducted and taken from him. Third. ’That he was underestimated in haul provided by the contract. Fourth. That he was underestimated in grubbing done by him under the contract. Fifth. That finishing stakes were not furnished him, and that he was, in consequence, required to go over' his work, and bring it up to grade a second time after it had settled, when five to seven per cent, of all the banks had been deducted for shrinkage, the amount it cost him being shown by the bills for such work proved by the evidence. Sixth. That he was damaged by delay in being furnished right of way in the largest cut on his work, so that it cost him one thousand five hundred dollars more to do it than if it had been furnished on time as he needed to work on it.”

The evidence touching these items is quite voluminous, and cannot be noticed in detail within the limits of 2. Contract: construction: substantial performance. an °pini0Ib nor is it necessary that it should be. The appellant’s principal complaint -g against the classification of the materials. The contract provides as follows: “There shall be no classification of material of any kind other than earth, [208]*208loose and solid rock, as provided in the specifications.” The specifications provide as follows: “Excavations in loose rock shall comprise, first, shale or soapstone, in its original or stratified position, coarse boulders in gravel, cemented gravel, hardpan, or any other material requiring the use of pick and bar, or which cannot be plowed with a strong ten (10) inch grading plow, well handled, behind a good six (6) mule or horse team. Excavation in solid rock shall be taken out with eighteen feet base, and solid-rock shall comprise — First, rock in solid beds or masses, in its original or stratified position; second, boulders or detached pieces of rock exceeding one (1) cubic yard, and all other material which, in the judgment of the engineer, cannot be removed without blasting.”

Estimates were made from time to time as the work progressed, and payment made thereon ,by the railroad company to McArthur Bros., and by them to their sub-contractors, including the appellant. In making these estimates it was the purpose to keep within the limit of work done, so that there would be no overpayment to the contractor, leaving any deficiencies to be covered by the final estimate. These estimates were made in part, at least, according to the following instructions: “As to classification, use your best judgment. Where the material is so hard that six horses can only plow half the time, allow a fair portion of loose rock, say twenty-five per cent. Where eight horses would be required, call about fifty per cent, loose rock, and about in that ratio, until in the very hard material, the hardpan of the specifications would be reached, which should all be classified as loose rock.” During the progress of this work, the appellant and other sub-contractors complained of the classification, and upon the completion of the work McArthur Bros, had a conference with their sub-contractors, including the appellant, at which the classification of the work [209]*209was discussed. No other complaint was made by or for the appellant at that time. A statement showing the classification claimed by the contractors and subcontractors was made out and agreed upon as acceptable, which statement was submitted to the chief engineer, and thereafter a change was made in the previous estimates from the former classification, and payment of the amount shown by the final estimate was made and received. The appellant’s contention is that the classification made under the instruction quoted above was in violation of the contract.

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Bluebook (online)
52 N.W. 125, 85 Iowa 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-v-mcarthur-bros-iowa-1892.