State v. Commercial Casualty Insurance

248 N.W. 807, 125 Neb. 43, 88 A.L.R. 790, 1933 Neb. LEXIS 154
CourtNebraska Supreme Court
DecidedJune 9, 1933
DocketNo. 28520.
StatusPublished
Cited by36 cases

This text of 248 N.W. 807 (State v. Commercial Casualty Insurance) 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
State v. Commercial Casualty Insurance, 248 N.W. 807, 125 Neb. 43, 88 A.L.R. 790, 1933 Neb. LEXIS 154 (Neb. 1933).

Opinion

Good, J.

This is an action against the surety on a guaranty bond, to recover damages caused by the principal’s alleged breach of a construction contract. Defendant had judgment, and plaintiff has appealed.

Plaintiff let to W. H. Pearce & Company a contract to' construct a high pressure steam pipe line, extending from the state’s heating and power plant, located on the University campus in Lincoln, to the state capítol, for the purpose of furnishing heat to the capítol building. The state employed two firms of engineers, one located in Lincoln and the other in Kansas City, the latter known as consulting engineers, and entered into contracts with these engineering companies to prepare plans, specifications and details for the construction and installation of the pipe line and for the superintending of such construction by said engineers. These engineering companies prepared plans, specifications and details for the pipe ling. Public notice was given to prospective bidders and proposals received from such bidders for the construction of the pipe line. The contract was awarded to Pearce & Company, hereinafter referred to as the contractor. The contract required the contractor to give a bond for the faithful performance of the contract, according to plans *46 and specifications, under the supervision of the state’s engineers. The contractor, with defendant as surety, executed such a bond. The contract provided that the notice to bidders, the proposal of the successful bidder, the plans, specifications, details and the bond of the surety company should all constitute a part of the contract.

The contract required installation of a steel pipe line, part of which should be 10 inches in diameter and the remainder 8 inches. The 10-inch part of the pipe line was to be installed in a tunnel extending from the heating plant a distance of several hundred feet, and from thence an 8-inch steel pipe in a conduit which would.extend to the capítol building. The contract provided for expansion joints at the points designated on the blue prints, and also provided for manholes at each expansion joint in the conduit. It further provided that the expansion joints should be of Ferrosteel, extra heavy pattern, and provided for not more than 5-inch expansion at each joint. It also provided that in the tunnel the 10-inch pipe should be anchored to the wall of the tunnel, and that anchors should be placed at each expansion joint and midway between the expansion joints. There was also a general provision that the pipe line should be suitable for carrying steam at a pressure of 250 pounds to the square inch and superheat of 150 degrees.

The state charged in its petition that the expansion joints were not of extra heavy pattern and were not suitable and safe for carrying steam at 250 pounds pressure and 150 degrees superheat; that the anchors were insufficient; that insufficient expansion was provided for; that the expansion joints should either have been placed closer together, or a greater expansion provided for, in each joint, and alleged other shortcomings, which we need not mention. Defendant answered, alleging that its principal, the contractor, had fully and completely performed its contract, according to the terms and specifications; that the contract provided for the work to be performed under direction and supervision of the plaintiff’s engi *47 neers; that they had approved all the work and materials furnished; had made monthly estimates which had been paid, and, on the completion of the work, had made a final estimate and approved the work as a completed whole, and that plaintiff had paid therefor.

Plaintiff claims that the court committed prejudicial error in admitting, over objection, evidence of tests, made by experts, of certain materials similar to some of those used in the construction of the pipe line, because the tests were made of materials that were not manufactured or fabricated at the same time as those used in the pipe line. The evidence shows that the tests were made of materials, manufactured by the same foundry, of like ingredients, in the same proportion, and under a similar condition to those that were used in the pipe line. We are cited to no authority holding that such tests are not competent, and, since they were of materials of the same character, in all respects, as those used by the contractor, we fail to perceive why the evidence was not admissible. Evidence of tests' of tensile strength of similar materials to those in controversy and made under like conditions is competent as tending to prove the tensile strength of materials actually used by the contractor.

Plaintiff complains because, over objection, the court received evidence to -the effect that the state’s engineers were daily on the job during the construction of the pipe line, inspecting and superintending the work done and materials used, and that such engineers approved the material and work. The contract provided for such inspection and supervision and empowered the state’s engineers to reject any and all material and any work that did not meet the contract requirements. There is no charge that the engineers acted in bad faith, or were negligent in the performance of their duties. They were standing in the place of and acting for the state, and their approval of the work and material tends to sustain the allegations of defendant’s answer that the work was performed in all respects according to the terms and conditions of the contract. *48 Where a contract for the construction of a steam pipe line makes the engineers of the owner supervising agents, with power to reject any material or work that does not comply with the terms of the contract, and authorizes the engineers to approve and issue final certificate, such certificate of approval by the engineers constitutes at least prima facie evidence that the work has been performed according to the contract. Freygang v. Vera Cruz & P. R. Co., 154 Fed. 640; Jefferson Hotel Co. v. Brumbaugh, 168 Fed. 867; Brownwell Improvement Co. v. Critchfield, 197 Ill. 61.

Plaintiff argues that the court erred in admitting certain evidence of what it terms preliminary negotiations between the state and the contractor, prior to the execution of the contract. There are certain provisions of the contract that are inconsistent with each other, and technical terms are used, concerning whose meaning engineering experts differ. With respect to the contradictory terms of the contract, in one or two instances, the conversations of the parties immediately prior to entering into the contract tend to show which of the inconsistent provisions was intended to be followed, and where there was ambiguity in the contract, evidence was admissible to show what the parties intended.

Parol evidence is admissible to show the meaning of technical terms in a written contract. 13 C. J. 532. A written instrument is open to explanation by parol evidence when its terms are susceptible of two constructions, or where the language employed is vague or ambiguous. 22 C. J. 1174, 1175. Such evidence is admitted, not for the purpose of contradicting the terms of the contract, but for ascertaining and giving effect to the true intent of the parties.

In Myers v. Persson, 94 Neb.

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Bluebook (online)
248 N.W. 807, 125 Neb. 43, 88 A.L.R. 790, 1933 Neb. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-commercial-casualty-insurance-neb-1933.