Snow Mountain Water & Power Co. v. Kraner

216 P. 589, 191 Cal. 312, 1923 Cal. LEXIS 456
CourtCalifornia Supreme Court
DecidedJune 19, 1923
DocketS. F. No. 10221.
StatusPublished
Cited by15 cases

This text of 216 P. 589 (Snow Mountain Water & Power Co. v. Kraner) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snow Mountain Water & Power Co. v. Kraner, 216 P. 589, 191 Cal. 312, 1923 Cal. LEXIS 456 (Cal. 1923).

Opinion

WASTE, J.

The defendant was engaged in the work of constructing a large cement dam for the plaintiff under a contract by the terms of which, in the event of abandonment of the work by the contractor, plaintiff might take over all tools, equipment, and supplies of the contractor and proceed to complete the structure. Alleging that the defendant had notified it that he declined further to proceed Avith the performance of his contract and was about to remove the equipment from the work, plaintiff brought this suit to restrain such threatened action. A restraining order was granted, and by stipulation was continued as a temporary injunction. Defendant took the position that the contract had been terminated by an act of the plaintiff. He filed counterclaims and a cross-complaint for the recovery of $873,625, alleged to be the balance due for the reasonable market value of all of the work done at the dam, after crediting plaintiff >vith the sum of $1,060,825 paid, computing said balance on the basis of the cost of all the work done plus ten per cent. The trial court found that the defendant had in fact abandoned the contract. Judgment was rendered against the defendant on his counterclaims and cross-complaint, and plaintiff was awarded its costs. No order was made for the continuance of the injunction, since plaintiff had completed the construction of the dam before the determination of the action. This appeal by the defendant folloAved.

On December 15, 1919, the plaintiff entered into a contract with the defendant for the construction by the latter of a concrete dam across the South Eel River, on a site mentioned in the contract, at the loAver end of Gravelly Valley, in Lake County. According to the plans and specifications, the work was to be done within certain delineated and designated lines extending from the north to the south bank of the stream. Prior to entering into the contract, defendant, with his engineers, made a thorough investigation of *316 the dam site, and, in the contract, he agreed to take the ground as he found it. The agreed price for the work called for by the plans and specifications was $1,122,350, with adequate provision for prices and payment for all kinds of additional work which might arise in view of the nature of the - construction. It was contemplated by the parties that occasion might arise for a departure from the work designated in such plans and specifications, and the contract provides:

“The Company shall have the right to make, but only by orders in writing, such reasonable alterations, omissions, additions or substitutions in said plans and specifications as the Company may deem necessary. The Contractor agrees to accede to and carry into effect all such alterations, omissions, additions or substitutions as though they were originally provided for in this contract.
“In the event of such alterations, omissions, additions or substitutions increasing or decreasing the cost of constructing the said dam there shall be added to, or subtracted from, the amount which the Company has agreed hereby to pay to the Contractor for the entire work, a sum equal to the difference between the actual cost of the materials and labor entering into such alterations, omissions, additions or substitutions, but not including any portion of the time of the superintendent or office employees, or overhead expenses, except industrial insurance, plus twelve and one-half per cent as the Contractor’s profit, and the same cost estimated in the same way of the work or construction which would have been done under the plans and specifications made a part of this contract, had there been no such alterations, omissions, additions or substitutions.”

It was stipulated in the contract that the defendant should begin work not later than January 1, 1920, and should have all concrete poured and the dam ready for use in storing water on or before December 1, 1920, and all additional work done and the dam entirely completed on or before February 1, 1921. Immediately upon the execution of the original agreement the defendant commenced the work of constructing the dam. The state Railroad Commission exercised jurisdiction over the work, paying particular attention to the exposure of satisfactory foundations for the construction of the dam before any *317 concrete should be placed thereon. On May 25th defendant was ordered by the consulting engineer of plaintiff in charge of the work to, and he did, change the axis of the dam as shown on the plans and specifications by moving the northerly end thereof westerly 25 feet, for the purpose of avoiding unsatisfactory material. Shortly thereafter, and for several months, defendant was in continual need of financial assistance. On various occasions he applied to the plaintiff, and was furnished by it with sufficient funds with which to proceed with the work. In June, at defendant's request, plaintiff extended the time within which the defendant was to have all concrete poured and the dam ready for use in storing water, to October 1, 1921, and the time within which all additional work should be done and the dam entirely completed, to December 1, 1921.

Defendant’s original plan of work was to build the dam from both banks of the river toward the center, but work was prosecuted more diligently on the north end of the structure than on the southerly side. The trial court found that the delay in completing the work at the,southerly end of the dam was not caused by any acts of the plaintiff. The real reason for the concentration of work on the northerly end of the structure seems to have been that work at that point was done more easily, and that the pouring of cement could progress more rapidly. The defendant testified that he expected the progress payments at five dollars a cubic yard for concrete poured to carry the expense of the work. When defendant finally began work of excavation for the foundation on the south side of the river, difficulty of construction was experienced by reason of the nature of the ground. On October 28, 1920, the axis of the dam was accordingly changed, so that from a point about 590 feet from the northerly end of the structure it would be constructed at an angle of 32 degrees from such point to a large boulder 75 feet high lying on the south side of the river. Defendant was directed to make this change, and to construct a ring of cement and a cutoff wall under the boulder and into the hard rock beyond. This change was considered a more economical and quicker way of building the dam than by completing it on the straight line axis, because of the nature of the ground and the material to be moved. Defendant accepted *318 and was working under these changed conditions in November, 1920, when torrential rains caused a heavy flood which washed away a large part of the material remaining to be excavated at the south end of the dam and undermined and moved the large boulder referred to some 35 feet out of position. This condition of affairs caused a change of plans which would not have been necessary had the boulder been imbedded in concrete, as was contemplated, ‘ or had the full force of the flood not been directed against the south bank by the completed portion of the dam in such manner as to undercut the rock.

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Bluebook (online)
216 P. 589, 191 Cal. 312, 1923 Cal. LEXIS 456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snow-mountain-water-power-co-v-kraner-cal-1923.