Shannon v. Polish Falcons of America

82 N.W.2d 523, 348 Mich. 92, 1957 Mich. LEXIS 395
CourtMichigan Supreme Court
DecidedApril 22, 1957
DocketDocket 28, Calendar 46,730
StatusPublished
Cited by6 cases

This text of 82 N.W.2d 523 (Shannon v. Polish Falcons of America) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shannon v. Polish Falcons of America, 82 N.W.2d 523, 348 Mich. 92, 1957 Mich. LEXIS 395 (Mich. 1957).

Opinion

Edwards, J.

Herein we relate the frustrations which met the effort of the Polish Falcons to build a nest.

This is a suit on a written contract for the furnishing and erection of the steel structure of a 3-story building. Plaintiffs and appellees were 3 partners doing business as Macomber Detroit Sales, whom we will subsequently refer to as Macomber. Defendant and appellant is the Polish Falcons of America, Nest No 86, a fraternal organization (hereafter the Falcons) which desired a new home for their lodge.

Macomber, after a jury trial, received a judgment for $51,171.30, from which the Falcons appeal.

The Falcons’ building committee were all inexperienced in building construction. The Macomber partnership was experienced in the steel supply and erection business. Macomber prepared the written contract. The contract was to be executed in the fall of 1947 when testimony indicates structural steel was in short supply. We approach this lengthy record with these facts clearly in mind.

*95 The Falcons, prior to August 27, 1947, employed J. Will Wilson, a registered architect, to plan and supervise the erection of a building. Three sets of plans were prepared by Wilson, one of which was finally acceptable to defendant. The approved set was submitted to plaintiffs, and negotiations were conducted thereunder resulting in the execution of a contract between plaintiffs and defendant on August 27, 1947.

The contract, drawn by plaintiff, provided in its pertinent portions as follows:

“1. This agreement * * * is an authorization for the seller to furnish and erect in place, on a cost-plus basis, such items as reinforcing rods, bar joist, structural steel, roof tee irons, and any other items of steel as agreed by the owners and architect to buy through the seller, for the completion of their new building to be located at E. Caniff and Klinger rd., Hamtramck, Michigan.

“2. It is agreed that the seller will purchase all materials at the lowest cost to meet the progress schedules, and have all items of cost indorsed by the owners and architect before any items are purchased.

“3. It is agreed that the owners will pay to the seller the cost of all items purchased, and cost of design and working drawings necessary to complete the work, as requested by the architect, plus 10% fee for the seller’s services. * * *

“5. No change or alteration in the work hereunder shall be made except on the written order of the owners, which shall be signed by the owners, and countersigned by the architect. * * *

“9. It is further agreed between the owners and the seller that a weekly invoice for labor, material, and fees will be presented and will be payable within 5 days from date of invoice.”

Plaintiffs referred the architectural plans they received to Richard McClurg, an engineer specializing *96 in structural design, who then prepared shop drawings for the erection of the steel structure. He observed that’ certain sections of the architectural drawings- called for steel up to 70 inches in depth. This presented 2 problems: (1) steel mills ordinarily do not roll steel larger than 36 inches;-and (2) a special order for 70-inch rolled steel would take 90-120 days to obtain delivery. The Falcons were unwilling to wait because they wanted to hold their . national convention in the new building the following-summer. Following consultation and consent of Mr. J. Will Wilson, Mr. McClurg prepared drawings for the use of “built-up” sections.

There was dispute at trial as to whether the building was improperly designed to use over 300 tons of steel, rather than 120 tons. The testimony of architect Wilson was that the Falcons wanted provision made for the possibility of the future addition of a roof garden.- They also wanted a 14-alley bowling alley on the third floor, and a balcony on the second floor. Testimony indicated these changes accounted for much, or all,' of the increased steel tonnage.

After plaintiffs had all the structural drawings prepared, along with the dimensions for each piece of steel, they were submitted to Mr. Wilson and the Falcons. Subsequently, Mr. Wilson and the Falcons signed purchase orders authorizing plaintiffs to obtain steel in accordance with the shop drawings. The undisputed testimony is that plaintiffs were able to purchase the required steel at 10(¿ per pound, while the prevailing market price was 12^.

On October 24, 1947, a meeting was held on the job site and attended by plaintiff McDowell, Argo Steel Construction Company (whom plaintiff had subcontracted to erect the steel), Arthur O. Misch Company (whom defendant had hired- during October as-general contractors), Mr. J. Will Wilson, and *97 defendant. It was there agreed that plaintiff would make certain alterations in the building as a result of the foundations having been improperly prepared (by parties not involved herein), and the Falcons’ desire that the balcony be removed. The testimony allows a fair inference that this latter change was made because of the Falcons’ concern about the mounting cost of the plans previously approved.

After October 24th plaintiff sent 9 invoices, dated from October 80, 1947, to January 5,1948. None of these was paid by the Falcons.

Early in November Mr. Wilson resigned as architect, and in December the firm of Jensen & Keough was hired. In December a conference was held in Macomber’s offices, at which time the new architects suggested further changes. Macomber asked authority to stop all shipments until such time as a final decision could be made regarding the building, but was told not to stop, that all changes could be made in the field, and that the Falcons had plenty of money to pay the costs. Macomber then prepared another set of shop drawings outlining the suggestions made by Jensen & Keough; these required less steel, but the provisions for the roof garden contemplated by the Wilson plans were deleted.

One of the plaintiffs, McDowell, testified that the attorney for the Falcons (also for the Liberty State Bank) who was assisting on the financing called him on December 31, 1947, and told him that “this job blew up,” and that “the men haven’t any money to build this job.”

By this time the steel was already fabricated and beginning to arrive in Detroit. Plaintiffs sought instructions and authorization from defendant to deliver to the site and erect but, receiving none, removed the steel from the freight cars and stored it.

Plaintiffs sued for a net value of $80,263.70, after having deducted $5,233.31 as the scrap value of the *98 unused steel. After the close of testimony from both sides, but before the case went to the jury, plaintiffs introduced evidence of having recovered $30,231.59 from a sale of the steel in question.

The trial judge phrased the factual issues in this case in the following manner in his instruction to the jury:

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Bluebook (online)
82 N.W.2d 523, 348 Mich. 92, 1957 Mich. LEXIS 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shannon-v-polish-falcons-of-america-mich-1957.