Town of Pendleton v. Saunders

24 P. 506, 19 Or. 9
CourtOregon Supreme Court
DecidedMay 18, 1889
StatusPublished
Cited by5 cases

This text of 24 P. 506 (Town of Pendleton v. Saunders) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Pendleton v. Saunders, 24 P. 506, 19 Or. 9 (Or. 1889).

Opinions

Strahan, J.,

delivered the opinion of the court.

The object of this suit is to recover damages against the defendants for the alleged violation of the conditions of a certain bond executed by the defendants to the plaintiff. It appears from the complaint that on the eleventh [10]*10clay of November, 1886, the defendants, Saunders and Church, contracted with the plaintiff to construct, build, erect and put in for the plaintiff, in accordance with certain specifications, a system of water-works, including a reservoir, which they agreed should be constructed and built pursuant to the said specifications; and should have when built, the capacity of holding 500,000 gallons of water, and be water-tight; and for such system of waterworks, built according to such plan and specifications, the plaintiff was to pay them §25,375 in bonds of the town of Pendleton, which were to be received by the contractors in payment at 6 per cent above par; that said Saunders and Church entered upon the performance of said contract and did build and put in a system of water-works for the plaintiff pursuant to said agreement and substantially in accordance with the specifications therefor in all respects save and except that the said Saunders and Church failed and neglected to dig, build and construct a reservoir for water which should contain and hold 500,000 gallons, and have the capacity for holding so much water, and be water-tight; and did notify this plaintiff and claim that they had completed said system of water-works, pursuant to such contract, and did call upon the plaintiff for the contract price of the same; that plaintiff examined said system of water-works, and particularly their reservoir, and finding the same not built according to said contract, and particularly that the said reservoir was not built pursuant to the specifications therefor, and not watertight, did refuse to accept said system of water-works and to pay the balance of the contract price for the same, and at said time plaintiff had paid Saunders and Church, on said agreement, the sum of $22,200 in bonds of the town of Pendleton, at the agreed price of 6 per cent above par, and there still remained unpaid upon said contract price the sum of $3,115, which plaintiff refused to pay over to Saunders and Church, because of their default in putting in said system of water-works according to contract, and particularly because of their failure to construct [11]*11a reservoir pursuant to said contract, and make the same water-tight as required by the specifications; that Saunders and Church, for the purpose of inducing plaintiff to accept the system of ■ water-works so constructed, and particularly to induce the plaintiff to pay them the balance of the contract price of said system of water-works, entered into a new contract with plaintiff, as follows:

“This agreement, made and entered into by and between C. P. Church and R. Saunders, as partners under the firm name of Saunders & Church, parties of the first part, and the committee on fire and water of the town of Pendleton, composed of W. F. Matlock, E. Reith and S. Rothchild, parties of the second part — witnesseth:

“That the parties of the first part, for and in consideration of the acceptance by the town of Pendleton of the water-works system, constructed for said town by the parties of the first part, in its present condition, and the payment by the town of Pendleton to the said first parties of the sum of the water bonds of the town of Pendleton, in the denominations of one thousand dollars each, and numbered 22, 23, 24, 25, 26, 27, 28, and 29, and of the sum of one hundred and ninety-two and f orty-eight one-hundredths dollars, by warrant drawn on the town treasury, that being the balance of the price agreed upon by the first and second parties as due to said first parties from said second parties upon the full and complete completion of said water-works system, the parties of the first part agree to and with said second parties that within ninety days from the date of the signing of the contract the reservoir of the water-works system of the town of Pendleton shall contain at least 500,000 gallons of water, or as much as can be put in the reservoir by pumping, and that said reservoir, when containing 500,000 gallons of water or as near thereto as possible, shall not lose from evaporation and filtration more than one and one-half inches of water, vertical measure, during each (Twenty-four 'hours, and that if said reservoir, when containing said amount of water, at the expiration of said ninety days, [12]*12shall lose more than one- and one-half inches of water by filtration and evaporation during each twenty-four hours, then that the said first parties shall, at their own cost and expense, within twenty days thereafter, make said reservoir water-tight by walling up the north, east and west walls of the same with hard-burned brick laid in cement mortar, and shall plaster the same with cement and black sharp sand, mixed in the customary proportions for cementing cisterns, on the inside of the walls of said reservoir to a depth of at least three-eighths of an inch.
“That the parties of the first part make, sign, execute and deliver to the town of Pendleton a good and sufficient bond in the penal sum of $4; 000, with two or more sureties, to be approved by the common council, conditioned for the faithful performance of their part of the terms of this agreement.
“That the parties of the second part, for and in consideration of the covenants and agreements of the first parties herein mentioned and by them to be kept and performed, hereby agree to and with said parties, not as individuals, but for and on behalf of the town of Pendleton, to accept for said town, subject to the conditions and covenants mentioned in this agreement, the water-works system constructed for the town of Pendleton by the first parties in the condition the same is now in, and to pay and deliver upon the filing of this contract, duly signed and executed by the parties' thereto, accompanied with the bond of the first parties, heretofore mentioned, with the recorder of the town of Pendleton and the approval of the same by the common council, water bonds of the town of Pendleton, in' denominations of one thousand dollars each, and num bered 22, 23, 24, 25, 26, 27, 28, and 29, also a warrant of said town, drawn on the town treasurer, for the sum of one hundred and ninety-two and forty-eight one-hundredths dollars.
“And it is further understood and agreed, by and between the parties to this agreement, that during the time mentioned in this agreement for the completion of [13]*13said reservoir, that the town of Pendleton will pump water into said reservoir to the full capacity of its pumps (except what water shall be needed for consumption in said town) whenever the first parties may desire to make a test of said reservoir, not exceeding once each week; and that the said first parties shall have the right during said time to bleed the reservoir as often as they may deem it necessary for the repairing of the same; and it is further understood and agreed by and between the parties to this agreement that W. F. Matlock, E. Keith, and S. Rothchild, parties of the second part, in the signing and execution of this agreement, assume no personal responsibility, and are not to be held in any way personally liable thereon, but that they sign and execute the same for and on behalf of the town of Pendleton.

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Bluebook (online)
24 P. 506, 19 Or. 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-pendleton-v-saunders-or-1889.