Velte v. McBride

118 A.2d 640, 208 Md. 434, 1955 Md. LEXIS 267
CourtCourt of Appeals of Maryland
DecidedDecember 5, 1955
Docket[No. 46, October Term, 1955.]
StatusPublished
Cited by4 cases

This text of 118 A.2d 640 (Velte v. McBride) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Velte v. McBride, 118 A.2d 640, 208 Md. 434, 1955 Md. LEXIS 267 (Md. 1955).

Opinion

Collins, J.,

delivered the opinion of the Court

This is an appeal from a judgment for costs rendered against Mitchell D. Clogg, trading as Clogg Company, appellant, plaintiff below, in favor of William F. McBride and Ruth D. Scott McBride, his wife, individually and as co-partners trading as Maryland Engineering Company, (McBride), appellees, defendants below.

At the hearing in this Court a suggestion was filed that Mr. Clogg had died after the hearing below and after the appeal was taken. As a result Charles A. Velte, executor of the estate of Mitchell D. Clogg, was substituted as appellant here. In this opinion Mr. Clogg will be referred to as the appellant.

The appellant filed an amended declaration against the appellees on the common counts and on a special count. This special count alleged that about June 4, 1951, the appellees entered into a contract with the appellant for the manufacture of “mast parts” for a total consideration to be paid the appellant of $62,516.80. In pursuance of that contract appellant performed certain services for the appellees under the contract. On October 17, 1951, while the appellant was in full process of manufacturing the metal masts, the appellees, without justification, wrongfully notified the appellant of the cancellation and termination of the contract by reason of which the appellant was put to great loss and damage.

After demand for further particulars, filing of further particulars and the general issue pleas, the case was heard in open court before Judge Manley, who rendered a judgment for the appellees for costs. From that judgment appellant appeals.

The appellant had been in the sheet metal fabrication business in Baltimore for approximately twenty-five years. Southern Industries of Maryland, Inc., (Southern Industries), located at Pikesville, manufactured, among *437 other things, antenna masts for the Government. Mr. Clogg and Mr. McConnel, President of Southern Industries, collaborated for the purpose of obtaining a subcontract from the Federal Manufacturing Company, (Federal), the primary contractor with the Government. Southern Industries was awarded the sub-contract for the manufacture of masts by Federal. On account of lack of capital, Southern Industries sub-contracted fifty percent of the work to McBride, appellees, who in turn sub-contracted to the appellant for the manufacture or fabrication of metal parts.

On June 4, 1951, McBride placed with Clogg a purchase order for 820 sets of metal mast parts at $70.00 per unit or at a total of $57,400.00. Each unit consisted of 33 component parts. On June 11, 1951, McBride supplemented the original order with an order for 820 anchor plates at a total price of $5,116.80. The aggregate price was $62,516.80. The purchase orders specified that all items were to be finished “Per Signal Corps specification 72-53 as stipulated on individual drawings.” Prior to the date of the purchase orders photostatic copies of prints had been given to Mr. Clogg which he stated were to be used as a “guide only” in commencing the work. Appellees offered evidence that these prints were sufficient. Attached to the purchase order of June 4, 1951, was the following schedule of deliveries to be made by the appellant: “52 sets by June 15, 1951; 123 sets additional by June 30, 1951; 175 sets additional by July 15, 1951; 175 sets additional by August 15, 1951; 175 sets additional by September 15, 1951; 120 remainder sets by October 15, 1951.”

Upon receipt of this order the appellant immediately set up his plant to do the work contracted for. The delivery schedule was not enforced against the appellant. There was considerable delay in the manufacture of certain parts. Appellant testified that this delay was caused by the appellees directing that work be suspended on certain parts because of anticipated changes in the plans and due to delays at the source of the contract. *438 Mr. Clogg stated that he received verbal instructions to make up fifty or fifty-two sets using the original prints as a guide only and then to hold up until it was determined whether or not the Government was going to approve the proposed changes. Mr. McConnel said that as early as August he was apprehensive as to whether Mr. Clogg could carry out the contract. Appellant claimed that he did not receive final working prints until September 10, 1951. Mr. McBride on September 24, 1951, took Government inspectors to Mr. Clogg’s plant. Mr. Clogg stated that this was the first time he had received any definite information from anyone as to what tolerances should be kept and the quality of workmanship required in the manufacture of the parts. A letter from Mr. McBride to Mr. Clogg on October 1, 1951, as to the inspection by the Government stated: “They explained what would be expected of us and you in the matter of workmanship and tolerance.” Mr. Clogg further claimed that there was little complaint, if any, from anyone prior to October 1, 1951. That letter of October 1st also stated that fifty-four masts would have to be shipped shortly after October 15th; that McBride must have fifty-four sets capable of passing Air Force inspection by October 15th; that failure to receive them would put them in jeopardy with the prime contractor; and that they would be forced to take steps to procure these parts elsewhere. McBride offered to render any assistance possible. Mr. Clogg testified that on October 8th Mr. McBride came to his plant and requested him to lower the contract price for the manufacture of the parts. This was refused. Mr. McBride denied any such conversation and further stated that he was not dissatisfied with the price.

On October 12th Mr. McBride wrote Mr. Clogg that unless the fifty-four sets of parts were ready by October 15th, the contract would be cancelled. On October 15th Government inspectors accompanied Mr. McBride to the Clogg plant, without any advance notice to Mr. Clogg, where they made an inspection of the parts. Their find *439 ings were unfavorable. On October 17th Mr. McBride advised Mr. Clogg of the cancellation of the contract and stated they would get the parts elsewhere. Appellant claimed that completion of fifty-four sets of parts by October 15th as demanded by Mr. McBride on October 1 st, was virtually impossible and that he should have been given a reasonable length of time in which to complete the parts.

It is clear that no more than fifty-two sets of the metal parts were ever manufactured by the appellant. The appellees claim that they made more than thirty or forty personal requests upon the appellant for the delivery of the fifty-two sets. Mr. McBride testified that when he delivered the final drawings to Mr. Clogg on September 10th, he saw fifty-two sets that had been completed under the original drawings, except the mast cap assembly, but that he did not see a single piece which he thought would pass Air Force inspection. He told Mr. Clogg to finish these fifty-two sets according to the original drawings and asked that he make up four additional sets in accordance with the new plans, one set for the Air Force, one for Federal, one for Southern Industries, and one for him. Mr. McBride testified that Mr. Clogg’s general attitude, expressed on two or three occasions, was that he had spent all the money he was going to spend on the parts and that the appellees “could take them or leave them.”

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Cite This Page — Counsel Stack

Bluebook (online)
118 A.2d 640, 208 Md. 434, 1955 Md. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/velte-v-mcbride-md-1955.