Western MacHinery Company, a Corporation v. Consolidated Uranium Mines, Inc., a Corporation

247 F.2d 685, 1957 U.S. App. LEXIS 3739
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 7, 1957
Docket5559_1
StatusPublished
Cited by13 cases

This text of 247 F.2d 685 (Western MacHinery Company, a Corporation v. Consolidated Uranium Mines, Inc., a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western MacHinery Company, a Corporation v. Consolidated Uranium Mines, Inc., a Corporation, 247 F.2d 685, 1957 U.S. App. LEXIS 3739 (10th Cir. 1957).

Opinion

MURRAH, Circuit Judge.

The appellant sued appellee on two counts, both to recover a balance of- $23,0.08.47 for labor and material furnished and services rendered by. appellant for the use and benefit of appellee at its special instance and request. The first count is said to sound in express or implied-in-fact contract'; the second in quasi contract as for unjust enrichment. Point is made of inconsistencies of the two legal theories with the suggestion that a choice should have been required. But we are not concerned with the nicety of pleaded legal theories. It is enough that both counts, considered separately or together, state a claim on which relief can be granted, and we are therefore interested to know whether the proof supports either or both theories, whether inconsistent or not. Blazer v. Black, 10 Cir., 196 F.2d 139; Vrooman v. Beech Aircraft Corp., 10 Cir., 183 F.2d 479; Siegleman v. Cunard White Star Limited, 2 Cir., 221 F.2d 189.

The trial of the case to a jury resulted in a judgment on a general verdict in favor of the appellant for the sum of $9,000. The appellant has appealed only from so much of the judgment as disallows the remainder of the claim, the contention being that the proof was conclusive in its favor.

The basic facts are that the appellant, Western Machinery Company, who is engaged in engineering and constructing mills for concentrating minerals, was asked by appellee, Consolidated Uranium Mines, Inc., in June 1951, to do preliminary engineering work on a tungsten mill near Austin, Nevada. Pursuant to a letter agreement, Western did perform certain engineering services for which it has admittedly been paid. The appellee undertook to construct the mill with its own employees under its own management until August 10, 1954, when, in a telephone conversation, the President of Consolidated asked a representative of Western to undertake the completion of the mill. On the same date, Western’s representative addressed a letter to Consolidated’s President, confirming the telephone conversation and listing the points “discussed and approved verbally”, among which were: “(2) All construction payroll accounts will be handled by W. K. E. [Western-Knapp Engineering Co.] (3) All materials and equipment other than that already purchased by Consolidated Uranium Company, including the Majuba Hills Equipment, will be purchased by *687 W. K. E. (4) The dismantling and moving of the Majuba Hills Mill will be handled by W. K. E. in addition to the construction work on the Linka Mill. (5) Prior to the 25th of each month, estimated expenditures for labor and materials for the next succeeding month will be submitted to you. You will forward this estimated amount to our San Francisco office prior to the first of the month.” The expenditures for labor and materials were estimated to be $17,000 per month. The letter went on to state that appellant’s manager and superintendent would arrive in Austin on the 16th to take charge of the construction work; that “if the above meets with your approval, and pending the drawing up of a formal agreement, will you please sign and return two copies of this letter to our San Francisco office.” The letter was approved by Consolidated’s President on August 12 and returned to Western. Without any other formal writings between the parties, Western proceeded with the supervision and direction of the construction work on the mill until about the middle of October, when Consolidated terminated the arrangement and took over the project.

Witnesses for Western testified that in the August 10 telephone conversation, it was agreed in effect that the construction of the mill by Western would be on a cost-plus-ten percent basis; and that the provision for the ten percent engineering fee was inadvertently left out of the hastily prepared letter. Consolidated’s President could not recall any reference to the ten percent engineering fees in the telephone conversation. But, it is apparently agreed that Western did undertake the construction of the mill at Consolidated’s instance and request, and that in the course of its operations, it expended for the account of Consolidated approximately $108,000 for labor and materials on the project. Western has admittedly been reimbursed for this entire amount, and while there is some intimation of inefficiencies, there is no proof that the sums were not providently spent on the construction project at the mill site. There was also proof that in addition to the $108,000, Western was out of pocket $13,173.11 for off-the-job expenses, such as overhead (rents, utilities, etc.), engineering and draftsmen services necessarily incurred and evidenced by submitted invoices. This sum, together with the claimed ten percent engineering fee of $9,835.36 constitutes the proof in support of the claim.

Consolidated categorically denied that Western had not been paid for any of the expenditures properly chargeable to Consolidated, or that it had benefited in any way as a result of the services performed by Western on the project.

On this evidence and the issues thus framed, the jury was first given Consolidated’s theory of the lawsuit to the effect that no contract was ever consummated, either express or implied. The court read to the jury that part of the August 10 letter containing the words, “Pending the drawing up of a formal agreement” and then told them that if the parties “contemplate all the while the reduction of their understanding, agreements, and stipulations to a formal written document, if that is what they intend and if they intend that no binding contract shall arise until that formal written document is executed, then there is no contractual obligation on the part of the defendant to pay the plaintiff anything”; and that it was for them to decide what the parties intended.

After the jury retired, Western excepted to the statement attributed to the court that “if the parties contemplate a formal written agreement then there is no contractual agreement.” In the first place, the statement is incorrectly attributed to the court; and in the second place, the instructions of the court correctly stated the applicable law. See Farmers Equity Co-op Creamery Ass’n v. United States, 10 Cir., 132 F.2d 738; Nigro v. Conti, 319 Mass. 480, 66 N.E.2d *688 353, 165 A.L.R. 752; Annotation, 165 A.L.R. 756.

Western complains of the dismissal of its first cause of action and of the court’s ruling that there was no written contract between the parties. The court did rule a written contract out of the case, and we think rightly so, for Western admits that the August 10 letter did not contain all of the agreement between the parties. Motter v. Patterson, 10 Cir., 68 F.2d 252; Thompson v. Star Farm Ins. Co., D.C., 145 F.Supp. 473; 12 Am.Jur. Contracts, § 23. But the court did not dismiss Western’s cause of action based on contract.

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Cite This Page — Counsel Stack

Bluebook (online)
247 F.2d 685, 1957 U.S. App. LEXIS 3739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-machinery-company-a-corporation-v-consolidated-uranium-mines-ca10-1957.