Sharp v. National Fidelity & Casualty Co.

149 N.W. 110, 97 Neb. 41, 1914 Neb. LEXIS 312
CourtNebraska Supreme Court
DecidedOctober 16, 1914
DocketNo. 17,814
StatusPublished

This text of 149 N.W. 110 (Sharp v. National Fidelity & Casualty Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharp v. National Fidelity & Casualty Co., 149 N.W. 110, 97 Neb. 41, 1914 Neb. LEXIS 312 (Neb. 1914).

Opinion

Letton, J.

This action was brought against the defendant Collins for failure to fully perform a contract to erect a building, and against the National Fidelity & Casualty Company upon the bond given to secure the faithful performance of the contract. The petition charges that the cost of the building exceeded the amount stipulated, that the building was not completed at the time stipulated, and claims damages for loss of rents, loss of profits in the business which Sharp expected to carry on in the building, and for defective construction. Collins admitted the execution of the contract and bond, denied the other allegations of the petition, and counterclaimed that there was due him for extras on the contract $1,729, with interest. Collins afterward brought an action against Sharp to foreclose a me-, chanic’s lien for labor performed and material furnished in the erection of the building. A number of subcontractors and materialmen were parties to this suit and filed cross-petitions praying for foreclosure of their liens. By consent the latter action was consolidated with the first for the purpose of trial. A jury was waived and the case tried to the court, which found in favor of Collins, dismissed Sharp’s petition in the law action, and rendered a judgmefit in favor of Collins for $1,809. In the equity suit it ordered the foreclosure of Collins mechanic’s lien for $1,739 of this amount, and established and foreclosed the liens of the other defendants. Sharp has appealed' in both actions.

The facts seem to be that, some time previous to the meeting of Sharp and Collins, Sharp had procured from Fisher & Lawrie, architects, plans and specifications for a brick machine-shop building. Collins was not called upon until it was found that bids could not be procured for the construction of the building, as specified, for the amount of money which Sharp desired to expend. These plans and specifications were gone over by Collins and [43]*43changed in a number of material particulars, and certain blue-print plans differing in some respects from those submitted by Fisher & Lawrie were made by Collins and submitted to Sharp before the contract Avas finally entered! into. In drawing up the contract between the parties the ordinary printed form of builder’s contract was used, but a number of the printed paragraphs were erased as not applicable to the actual understanding. By article 1 it was provided: “The contractor shall and will provide all the materials and perform all the work” for the building “as shown on the draAvings and described in the specifications prepared by Fisher & Lawrie and George J. S-. Collins.” It was provided in article 6: “The contractor shall complete the several portions, and the whole work comprehended in this agreement, by and at the time or times hereinbefore stated, to wit, as soon as practicable, say November 1st, 1909.” Article 8: “The owner agrees to-pay for all labor and materials essential to the conduct of this work.” Article 9: “It is hereby mutually agreed between the parties hereto that the sum to be paid by the owner to the contractor for said work shall be $800. * * Should the total cost of the building, as specified in article 13, be less than $8,200, the contractor shall be entitled to 25 per cent, of such saving, but shall pay all cost in-excess of that amount, subject to additions and deductions as hereinbefore provided.” By article 13 the contractor agreed to furnish a bond “that the cost of all materials and labor for the building, exclusive of the sum mentioned above, shall not exceed $8,200.” The Casualty Company bond recited: “Whereas said principal has entered into a Avritten article of agreement dated the 31st day of July, 1909, with said owner to order all the materials and superintend all the work for (describing the building). But the owner shall pay for all labor and material; said building to be constructed in accordance with the plans and specifications signed by the parties hereto.”

There is a direct conflict' in the evidence with respect to the identity of the specifications which formed part of the contract. Sharp produced the specifications prepared [44]*44by Fisher & Lawrie. These bear the genuine signatures of Collins and Sharp, which Sharp testifies were signed at the time the contract was entered into. Collins testifies, on the other hand, that no specifications were signed at that time, but claimed that the changed specifications were delivered to Sharp, and have never since been seen by him; that the specifications produced were signed nearly five months after the contract was signed, Sharp having produced them and stated that this was the copy which had been altered; and that he (Collins) signed them without examination. Collins keeps a diary in which he notes many facts with respect to his business. By reference to the diary he testified that this occurred on January 24, 1910, and that he only discovered that he had signed the wrong specifications on January 28, 1910, after he was told that Sharp had taken the specifications away. Whether this is the fact or not, it seems apparent that the signed specifications were not adhered to in the construction of the building, because in a number of important points neither the Fisher & Lawrie plans nor these specifications were followed. Moreover, many of the provisions of these specifications are not at all applicable to a contract of the nature of that .actually entered into between these parties. Even if these actually are the specifications that were identified before using and which were used, it is evident that neither party treated many of their provisions as effective, and that Sharp is not entitled to insist upon their strict interpretation now. This being so, a large part of the complaint with respect to a departure from the specifications must fail.

The evidence also conflicts as to the time that the contract was signed. This is only material with respect to the. time of completion, and, incidentally, as throwing light upon the actual understanding of the parties. The duplicate contracts bear date of August 31, 1909. Upon the back of the copy which Collins retained that date.is also shown. The bond recites that the contract was dated July 31. The bond itself is dated August 7,1909. Collins testified by the aid of his diary that he presented the drawings, [45]*45as changed by him, to Sharp on August 10, that negotiations continued until the 20th, but the contract was not actually signed until August 31. The agent for the insurance company testifies that at the time the bond was applied for it was his recollection that Collins had a copy of the contract. Upon cross-examination, however, it developed that in the copy of the agreement which was then furnished to the insurance company, which was produced at the trial and from which the provisions in the bond were- drawn, the date is July 31, and the printed clause, “the contractor shall and will provide all the materials and perform all the work,” had been so changed that it read, “that the contractor shall and will order all the material and superintend all the work for the building.” In a few minor particulars, also, this contract differed from the actual contract which was signed. We are satisfied that the contracts which were actually signed were not executed until the day they bear date, and that this copy and the recital in the bond more nearly express the actual contract between the parties, as afterwards construed by the action of the parties themselves, than does the written contract, and that by an oversight the printed forms were not changed accordingly when the contracts were afterwards signed.

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Bluebook (online)
149 N.W. 110, 97 Neb. 41, 1914 Neb. LEXIS 312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharp-v-national-fidelity-casualty-co-neb-1914.