Rudy Choy, Warren Seaman and Alfred Kumulae, Co-Partners Doing Business as Choy, Seaman and Kumulae v. Elmer H. Bouchelle

436 F.2d 319, 8 V.I. 5, 1970 U.S. App. LEXIS 6992, 1971 A.M.C. 1289
CourtCourt of Appeals for the Third Circuit
DecidedOctober 9, 1970
Docket16584
StatusPublished
Cited by32 cases

This text of 436 F.2d 319 (Rudy Choy, Warren Seaman and Alfred Kumulae, Co-Partners Doing Business as Choy, Seaman and Kumulae v. Elmer H. Bouchelle) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rudy Choy, Warren Seaman and Alfred Kumulae, Co-Partners Doing Business as Choy, Seaman and Kumulae v. Elmer H. Bouchelle, 436 F.2d 319, 8 V.I. 5, 1970 U.S. App. LEXIS 6992, 1971 A.M.C. 1289 (3d Cir. 1970).

Opinion

OPINION OF THE COURT

GANEY, Circuit Judge

A jury awarded plaintiffs $15,000 on their claim for the balance due them by defendant under both a design fee and a boat construction contract and for special damages, and found against the latter on his counterclaim for loss of a charter season. The district court denied, without opinion, defendant’s post-trial motions for judgment n.o.v. and for a new trial wherein it was alleged that the contract was so vague and indefinite with regard to prices, the times of delivery and what was to be delivered, as to render it unenforceable. Additionally, the plaintiffs’ motion for bill of costs, as well as for an attorney’s fee in the sum of $3,020.00, plus $94.06 for disbursements was allowed, to which the defendant objected and this appeal followed. We agree with the district court’s denial of the motion for judgment n.o.v., but would grant the motion for a new *9 trial, and the remaining contention for counsel fees has no relevancy in the disposition of this case.

After much long distance correspondence between the parties, plaintiffs, designers and builders of pleasure boats in California, by letter of January 11, 1962, advised defendant, a charter boat captain in the Virgin Islands, of what they felt would be “a realistic and fair completed construction cost” of a 51-foot charter catamaran. A portion of the letter stated:

Here is a breakdown of what we feel to be a realistic and fair completed construction cost of this catamaran if built by our yard:

Materials, Equipment & Rig (at our cost)
1. Lumber & materials ........................................................ $5,000
2. Fiberglass, resins & plastics ........................................ $1,500
3. Interior hardware, equipment & fixtures .................... $2,000
4. Marine hardware ............................................................ $2,000
5. Rigging .............................................................................. $ 555
6. Working sails .................................................................... $1,000
7. Spars .................................................................................... $1,700
8. Cushions & mattresses .................................................... $ 700
9. Generator (diesel) ........................................................ $ 900
10.Edison steering equipment ............................................ $ 900
$16,250
Labour
1. 4 boat builders (including taxes and benefits)
2. $3,150.00 labor cost per month for 6 months.
Labour Cost Total — $18,900.00
Profit — 5% of $35,150.00
To this you must add cost of two 40 H.P. outboard motors, awning, fuel tanks, shower equipment or electronic equipment. . . .

On April 25, 1962, the defendant, in the Virgin Islands, signed a written form agreement prepared by the plaintiffs and sent to him from California, where plaintiffs’ *10 boat shop and office were located, with an accompanying letter by mail dated twenty days earlier, or April 5, 1962. 1 Under the agreement, defendant, as owner, hired plaintiffs, as the contractor, to build a day-sailing catamaran in California according to plans and specifications which were subject to change within certain limits by defendant before completion of the boat, and any additional expenses caused by these changes were to be paid by defendant. Besides the administrative expenses, which included seven categories, the total contract price was estimated to be $35,150 plus a fixed profit not to exceed 5% of that figure. No date was set for the completion of the boat, but construction time was estimated to take six months. The boat was built and launched, but before paying the balance which plaintiffs claimed was due them and without their permission, defendant in the middle of May of 1963, took possession of the boat and sailed it from California to the Virgin Islands via the Panama Canal, a distance of approximately 5,000 nautical miles. In September of 1964, while the vessel was still in the possession of defendant, plaintiffs brought the action here involved in the District Court of the Virgin Islands. Jurisdiction of the court was invoked on the grounds of diversity.

*11 The contract stated that the vessel was to be delivered within a reasonable time from the execution of the contract, and is silent concerning a penalty in the event of an unreasonable delay in delivery. This provision does not render the contract vague. The law assumes a reasonable time even when no time is stated. By the terms of the contract, it was estimated that the vessel would be completed within six months from the signing of the contract, but no definite date was given because the defendant was permitted to make changes in the plans which might cause delay in the completion of the vessel.

Plaintiffs claimed and offered evidence to prove that defendant’s actions delayed delivery of the vessel by five months, paragraph 4 of the contract stating:

In the event that construction time is unnecessarily delayed by OWNER’S failure to comply with the installment payments of the purchase price as set forth in paragraph (3) hereof, OWNER hereby agrees to pay CONTRACTOR all additional costs and expenses incurred due to said delays.

While the contract price here is not particularly definite, it need not be, for it may be left to be fixed in a manner to be agreed by the parties. Here the price was purposely left indefinite because it was made to depend on the actual cost of construction which included a number of items, the value of which could not be determined until the vessel was delivered to the defendant. However, at trial the plaintiffs claimed the following amounts:

1. Contract figure ............................................................ $35,150.00
2. Fixed profit (5% of $35,150.00) ................................ 1,757.50
3. Mothballing for two months .................................... 450.00
4. Rental of yard ($75 a month for 11 months) ........ 825.00
5. Overhead ($65 a month for 11 months) ................ 715.00
6. Administrative expenses for 11 months ................ 525.00
7. Extras ........................................................................ 4,512.51
8. Insurance (for 11 months) ........................................ 780.44

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Bluebook (online)
436 F.2d 319, 8 V.I. 5, 1970 U.S. App. LEXIS 6992, 1971 A.M.C. 1289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rudy-choy-warren-seaman-and-alfred-kumulae-co-partners-doing-business-as-ca3-1970.