Williams v. National Contracting Co.

199 N.W. 919, 160 Minn. 293, 1924 Minn. LEXIS 747
CourtSupreme Court of Minnesota
DecidedAugust 1, 1924
DocketNo. 24,092
StatusPublished
Cited by10 cases

This text of 199 N.W. 919 (Williams v. National Contracting Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. National Contracting Co., 199 N.W. 919, 160 Minn. 293, 1924 Minn. LEXIS 747 (Mich. 1924).

Opinions

Wilson, C. J.

In the month of July, 1919, defendant school district, having been authorized by the voters in the district to borrow money to begin the erection of certain additions to the high school building at Buhl, pursuant to a resolution passed by its board,' entered into a verbal contract with the National Contracting Company, the appellant herein, to do the work on what is termed a cost-plus basis. The board of education had employed an architect who had made plans and specifications for the project. By the terms of the agreement the appellant was to order the material and labor and submit estimates therefor, and it was to receive cost plus ten per cent.

The board of education did not advertise for bids as required by section 2773, G. S. 1913, nor did it demand and require the public contractor’s bond as 'provided by law. Section 8245, G. S. 1913.

The appellant commenced work, and on November 5, 1919, after a substantial amount had been done, the plaintiffs, as taxpayers in the district, commenced this action against the board of education, the members thereof, and appellant, as well as one Anderson, who had a similar contract on another building with which we are not here concerned. The action sought to restrain and enjoin the school district from awarding or entering into any further contracts on the cost-plus basis, and enjoining and restraining the payment of any money in carrying out the said contract with appellant. A temporary restraining order was issued on that date. The appellant answered. It later filed a supplemental and a cross answer to the pleading of the other defendants.

On November 19, 1919, the parties entered into a stipulation as follows, to-wit:

[295]*295“It appearing to the parties hereto that the best interests of the parties and the public required the completion of the basemeñt of the North Wing of the addition to the school building at Buhl up to the grade level, including floor slabs, as soon as possible, and the National Contracting Company having agreed to complete said work to that point upon the terms of the agreement now in force, including the necessary provisions for the protection of said work during the winter, within three weeks from date hereof at a cost of not to exceed $6,000.00, they to be paid 10%' of the actual cost of doing said additional work as their profit for so doing, provided that the Defendant District shall advance the invoice price of the material billed to or received by National Contracting Company since the date of the restraining order herein, so as to avoid the necessity of the said National Contracting Company advancing said sums.
“Now therefore it is stipulated that in view of the emergency which is now existing requiring the prompt performance of said work in order to protect it against approaching cold weather, said National Contracting Company may, and it is hereby authorized and agrees to proceed at once with the completion of said work on said North Wing up to the point stated under the terms hereof, whereby it shall receive 10% of the actual cost of doing such additional work as the profit for so doing which work shall be completed within three weeks from the date hereof, and said National Contracting Company shall be entitled to receive and shall be paid therefor the actual cost of such performance, including lab,or and material, and 10% in addition thereto, and said District shall also pay for such material billed to or received by said National Contracting Company since the date of and not including in its last estimate, which said invoice however, shall not exceed the sum of $4,000.00 and the difference, if any, between $6,000.00 and the amount to be paid said National Contracting Company for said additional work under the terms hereof.
“It is understood that an order may be entered by the Court herein in accordance with this stipulation, and that this stipulation and said order are to be deemed as made and entered without pre[296]*296judice to the rights and contentions of the respective parties with respect to the obligations of the Defendant District to pay or the right of the contractors to demand payment under their respective contracts, and that work on the balance of the Kinney and Buhl jobs, exclusive of the necessary protective measures which shall be taken by said district, shall be discontinued until such time as said work can be resumed to advantage in the spring of 1920.
“Said National Contracting Company shall also before any money shall be paid to it hereunder, give a bond to the District in the sum of $10,000.00 conditioned that the said work to be done hereunder shall in all respects be done in a workmanlike manner and to be structurally sound and sufficient for the purpose for which it is intended, the cost of which bond shall, however, be considered as a part of the cost of performance hereunder and shall be in such form and with such surety or sureties as the Court shall approve and accept.
“That save as herein provided for the restraining order now in force shall be and remain in force and [effect] until set aside, vacated or otherwise modified by the Court herein.
“That the certificate of the architect, A. W. Kerr & Company, as to the actual cost of such work and the completion thereof in accordance herewith shall be prima facie evidence of the fact that such work is completed, and the cost thereof, and the authority for the payment therefor by said School District to said National Contracting Company, as shall also be the certificate of such architect as to the material to be paid for by the District hereunder.”

Pursuant to this stipulation the court made an order covering substantially the same provisions as are contained in the stipulation. Among other things, this order contained this language:

“It is ordered that said National Contracting Company shall forthwith proceed with said work under the arrangements and upon the terms-set forth in said stipulation, and shall be entitled to receive from said defendant, School District No. 35, and said School District shall pay to it upon completion thereof, and the observance by it of the other terms of said stipulation, the actual cost of said [297]*297work, labor and material, not exceeding, however, the sum of $6,000.00 including the 10% contractor’s profit thereon, and said defendant District shall, and it is hereby authorized and directed to pay for the material billed to or received by said National Contracting Company for said Buhl job since the date of the restraining order herein, to the amount and for the purpose provided for in the stipulation.”.

The work contemplated by this stipulation was “protective work.” It was necessary to complete the work up to a point where necessary precautionary measures could be taken to protect the job against the effect of cold weather.

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Cite This Page — Counsel Stack

Bluebook (online)
199 N.W. 919, 160 Minn. 293, 1924 Minn. LEXIS 747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-national-contracting-co-minn-1924.