Texas Associates, Inc. v. Joe Bland Const. Co.

222 S.W.2d 413, 1949 Tex. App. LEXIS 2048
Court of Appeals of Texas·Decided July 6, 1949·No. No. 9783·Published·Cited by 29 cases

Opinion

GRAY, Justice.

Appellant purchased, from the War Assets Administration of the United States Government, seven buildings, all located on the Magnesium Plant site near the City of Austin, Texas, and, under the terms and conditions of sale set out in the “Invitation for Bids and Specifications of Sale of Buildings and Installed Equipment,” appellant was required to dismantle the buildings and remove all equipment, material and refuse from the premises. On August 21, 1947, appellant entered into a contract with appellees whereby appellees agreed to dismantle said buildings and convert the material therein into salvage and scrap and to load the same on railroad cars. The parties will be here designated as they were in the contract, namely: appellant as owner and appellees as contractors.

By paragraph one of the contract, the contractors agreed to perform all work and furnish equipment, tools, materials and labor necessary to:

(a) Disassemble and dismantle all machinery, equipment and appliances in the buildings in such manner that the greatest practical amount thereof could be salvaged as secondhand materials, and that which [416] could not be so salvaged would be saved as scrap.'
(b) Load all salvage on railroad cars blocked and secured for shipment in a manner sufficient to meet the requirements of the carrier.
(c) In like manner, load all scrap.
(d) Dispose of debris, allowing contractors one-third of the sales price of brick taken from linings of cells in addition to other compensation received by the contractors under the contract. Such brick to be stored on the premises or loaded on cars.

Paragraph 2 is as follows:

“(2) All work hereunder shall be performed under the supervision and in accordance with the directions of Owner’s Engineer. It is understood that the work will be so planned that salvage will be ready for shipment in time to meet sales contracts made by the Owner and that Owner will give Contractor reasonable advance notice so that contractor may plan the work in order to meet these requirements without extra cost or expense. Machinery, equipment and appliances will be dismantled either by disconnecting the component parts or by cutting or burning into, smaller parts as may be required to render them most valuable as salvage. If the Contractor is of the opinion that any direction- given by the Engineer is unreasonable to such an extent as to necessarily increase the cost of the work, he shall forthwith, but without stopping or delaying the work, notify the Owner in writing of Contractor’s objections, specifying the actions complained of and the reason therefor. The Owner shall have cars spotted for loading, at the nearest switch, as soon as they can be procured after Owner is notified by Contractor of his loading requirements and dates of loading. Contractor agrees to .perform all of said work in a good, workmanlike manner, in accordance with the directions of the Owner’s Engineer and with all necessary care to recover all salvage reasonably possible. The Contractor will prosecute the work with due diligence to completion within four (4) ‘months after this date. Except as herein otherwise provided, the Contractor will comply with the requirements of the aforesaid ‘Invitation for Bids and Specifications of Sale of Buildings and Installed Equipment.’ ”

Paragraph 3 states the contract price to be: (a) an amount equal to $30 per ton for salvage; (b) $15 per ton for scrap. And recites payment of $45,000 to contractor as an advance payment on the contract price. For each ton of salvage loaded on the cars and shipped, as determined by railroad weights, and within ten days thereafter, contractor was to be paid $15 cash and credited with $15 against the advance payment. And for each ton of scrap loaded and weights determined as above, there was to be a credit of $15 against the ádvance payment. In the event the total amount of scrap exceeded 1,000 tons, the contractor was to receive $22.50 per ton for each ton in excess of 1,000. The owner guaranteed that the total amount of salvage and scrap would be not less than 3,000 tons.

Paragraph 4 provides the contractor would furnish a performance bond, and carry property damage and compensation insurance.

Paragraph 5 provides for the owner to take over in the event the contractor became bankrupt or made default.

. Paragraph 6 provides for the arbitration of disputes; and paragraph.7 provides that the waiver of any defaults by either party shall not constitute a waiver of any subsequent default.

Paragraph 8 provides that the contractor shall maintain a superintendent on the job and in charge of the work to whom directions could be given by the owner or its engineer.

The contractors undertook performance. The work was not completed at the end of the four-month period, but under an alleged oral agreement, the work was continued by the contractors until February 20, 1948, when the contractors quit and thereafter instituted this suit to recover on a quantum meruit.

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Texas Associates, Inc. v. Joe Bland Const. Co., 222 S.W.2d 413, 1949 Tex. App. LEXIS 2048 (Tex. Ct. App. 1949).

222 S.W.2d 413 (Texas Associates, Inc. v. Joe Bland Const. Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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