Wyatt C. Hedrick, Inc. v. Ratcliff

63 S.W.2d 877
CourtCourt of Appeals of Texas
DecidedNovember 7, 1931
DocketNo. 12562
StatusPublished

This text of 63 S.W.2d 877 (Wyatt C. Hedrick, Inc. v. Ratcliff) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wyatt C. Hedrick, Inc. v. Ratcliff, 63 S.W.2d 877 (Tex. Ct. App. 1931).

Opinion

BUCK, Justice.

E. R. Ratcliff, of Shreveport, parish of Cad-do, state of Louisiana, filed suit against Wyatt C. Hedrick, Inc., alleging that in February or March, 1929, the plaintiff and defendant entered into negotiations with the view of constructing a building in the city of Shreveport, the purpose of said negotiations being the employment of said defendant as architect for the preparation of plans and specifications of said building and the supervision of its construction; that said negotiations eventually resulted in making of a contract, which contract is evidenced by certain letters and telegrams passing between plaintiff and defendant, and by the terms of which contract the defendant agreed and bound himself to prepare preliminary sketches or plans and estimates covering the proposed building, which was to be a three-story building according to plans prepared and submitted by Montgomery Ward & Co., and to submit the same to plaintiff for his approval without obligation on the part of plaintiff unless and until the said building was actually constructed and leased to Montgomery Ward & Co., a corporation domiciled in the city of Chicago; and in the event said deal or transaction then pending with Montgomery Ward & Co. was finally consummated and said building actually constructed, said defendant was to be retained as architect to prepare plans, specifications, and estimates and to supervise the construction of said building, for which service the said plaintiff herein agreed and bound himself to pay to the said defendant the sum of $1,400 in the event the said building was not constructed after the completion of final plans, specifications, and estimates; but in the event the said building was finally constructed and the transactions of Montgomery Ward & Co. were finally consummated, the plaintiff bound himself to pay to the said defendant the total sum of 6 per cent, of the cost of said building, the said $1,400 to be credited on said amount. In this connection plaintiff pleaded that all of the negotiations referred to by and between plaintiff and defendant were conducted on the part of said defendant by and through Wyatt C. Hedrick, president of said corporation, he being thereunto fully authorized and empowered to act for and on behalf of said defendant.

Plaintiff further pleaded that after negotiations with Montgomery Ward & Co. had reached a stage where both the plaintiff and defendant believed that the said transaction would be consummated and that the lease upon which the agents of Montgomery Ward & Co. and the plaintiff had agreed, would be executed by Montgomery Ward & Co. through its duly authorized officers, and acting on the belief that the said building would be actually constructed upon the terms and conditions set forth in said lease contract with Montgomery Ward & Co., and that said defendant would supervise the construction of said building and thereby earn the 6 per cent, of the cost of said building as hereinabove set out, the plaintiff at the urgent request of defendant advanced, in addition to the said $1,400 theretofore agreed upon, the sum of $2,600 as a payment on the total amount agreed upon to be paid to defendant in the event the said building was constructed and defendant supervised said construction. Plaintiff further pleaded that the negotiations with the agent of Montgomery Ward & Co. relative to the construction and leasing of said building were purely tentative and subject to the approval of the officers of said corporation, who resided in Chicago, and that it was understood by all parties, including defendant, that Montgomery Ward & Co. was not bound to lease said building until said approval had been made by said officers in Chicago and a written lease executed by them to plaintiff. Plaintiff pleaded that said lease was never executed, that is, upon the specifications submitted by defendant. Montgomery Ward & Co. declined to execute said lease and peremptorily terminated all negotiations concerning the leasing of said proposed building from plaintiff. That after the failure of Montgomery Ward & Co. to lease said building upon the specifications made by defendant, plaintiff demanded of the defendant the return of said excess of $2,600, but the defendant failed and refused and still fails and refuses to pay same, or any part thereof.

Plaintiff further pleaded that said failure of Montgomery Ward & Co. to lease said building was for reasons unknown to plaintiff, and that defendant was obligated and bound to repay to plaintiff the $2,600 theretofore paid him, in addition to the $1,400 which plaintiff owed.

Defendant answered by a general demurrer and a general denial, and by way of cross-action defendant pleaded that on or about March 4, 1929, he and plaintiff entered into negotiations by which defendant would prepare preliminary plans and furnish estimates of costs without obligation on the part of plaintiff and defendant if the negotiations with Montgomery Ward & Co. did not result in a contract between that company and plaintiff for the erection of the building to be used by that company, but with the obligation on the part of plaintiff if said negotiations did result in a contract for the erection of the building for Montgomery Ward & [879]*879Co. by plaintiff, to pay to this defendant 6 per cent, of the cost of such building covering the execution of plans and supervision of the work; and plaintiff and defendant entered into a verbal contract, partially evidenced by letters between them, whereby defendant would prepare complete plans and take bids from contractors for the erection of the building by plaintiff, the plans not to cost in excess of $2,800, of which plaintiff, in that event, would pay one-half, or a maximum of $1,400 to defendant, and, if the actual cost of making the plans, writing the specifications, and taking the bids should be less than $2,S00, plaintiff in such case, upon the failure of Montgomery Ward & Co. to lease the building specified, should pay only one-half of said amount, but in the event the work did go ahead and the building was erected by plaintiff for Montgomery Ward & Co., the defendant would do such work for plaintiff on the basis of actual cost plus a fee of 6 per cent., and defendant would keep a superintendent on the ground at all times and the work should be done under the supervision of such superintendent representing plaintiff, but being under the direction of defendant; and defendant pleaded that in pursuance of such performance it prepared all plans complete with specifications in accordance with the understanding-between plaintiff and defendant, and the customs and usages prevailing in such cases after such plans had been approved by Montgomery Ward & Co., it awarded the general contract to James T. Taylor, being the lowest bidder, on the basis of $85,100, and other contracts were awarded to other contractors upon competitive bids, all with the knowlédge and consent and and approval of plaintiff, making an aggregate cost of $98,948, the contract having been) awarded to Beach Plumbing & Heating Company in the sum of $4,593, and to the Dallas Electric Company in the sum of $3,400, and to Otis Elevator Company in' the sum of $5,-853. Defendant further alleged that the lease for said building by Montgomery Ward & Co. had been approved by the representative of said company and had been signed by plaintiff and forwarded to Chicago for the signature of Montgomery Ward & Co., and defendant, acting in good faith of all such facts made preparations for the work in question and incurred large expense in connection therewith ; that on or about May 17, 1929, plaintiff notified defendant that Montgomery Ward & Co.

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Bluebook (online)
63 S.W.2d 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wyatt-c-hedrick-inc-v-ratcliff-texapp-1931.