Goff v. Walker
Goff v. Walker
Opinion of the Court
All the parties to this case other than Wallace & Linnane are members of the Master Plumbers’ Association of Des Moines. This association consists of 16 members, 12 of whom are plaintiffs herein, and 4 of whom are defendants. The 16 members of this association joined together in a concerted effort to obtain from defendants, Wallace & Linnane, a subcontract for installing the plumbing in the construction of the government cantonment at Gamp Dodge. The principal contract for the construction of the cantonment had been let to Weitz & Sons. Weitz & Sons sublet the plumbing to Wallace & Linnane. Wallace & Linnane proposed to share this contract with the total membership of the Master Plumbers’ Association. The negotiations to that end, however, fell through. Later, Wallace & Linnane did share the contract with the four defendants. Because these four defendants, or some of them, had previously acted as a committee in the negotiations between Wallace & Linnane and the membership of the association as a ‘whole/it is contended that the acceptance by them on their own behalf of a contract with Wallace & Linnane was a breach of duty on their part towards their associates, and was a violation of fiduciary relations.
The Master Plumbers’ Association is a trade organization, and not a corporation for profit. It could not, therefore, be deemed a party to. the alleged contract, or to any negotiations looking thereto. The members of this associa^ tion are competitors in trade, and ordinarily sustain no fiduciary relations toward each other. If the proposed joint adventure involved a secret agreement to stifle competition, while carrying before the public an appearance of competition, equity would turn away its ear. But this is not such a case. Competition was not invited among bidders. The government had fixed the compensation at net cost, plus a profit of 10 per cent, on a net cost of $100,000, and a profit of a smaller percentage on a sliding scale on a net cost of over $100,000. In obtaining such contract and its subcontract, therefore, the race appears to have been to the swift, rather than to the strong. Wallace & Linnane (not members of the association) obtained the subcontract for all the plumbing, in a race therefor with the membership of the association: that is to say, the membership, acting together, sought to obtain such contract. Wallace & Linnane, being successful, thereupon, on June 30, 1917, addressed a letter to seven members of the association, proposing to share the contract with the membership of the association on a proposed basis of a division of the profits. At a meeting of the membership, this basis of division was approved, and a committee was thereupon appointed, to formulate the details of a written contract, to.be signed by Wallace & Linnane, on the one part, and. by the several members of the association, on the other. This committee consisted of the four defendants, Walker, Corcoran, Eosene, and Thomas. The members of this committee were alsq to act as an advisory committee, and as superintendents
This was the condition of affairs up to July 26th. Wallace & Linnane had been under the necessity of beginning work as early as July 7th. The practical difficulty of dealing with so many persons had loomed quite large. A question of the liability of. the entire membership of the association for the wrongdoing or neglect of any member thereof in the performance of the contract was involved in disagreement. Some members of the association were deemed of doubtful responsibility financially. It was deemed necessary to create a working fund of $30,000, which amount would have to be borrowed upon the credit of those financially responsible. This presented a difficulty. The question of the selection of superintendents over foremen, and the time to be devoted by the different members to. general oversight of the work, presented differences. These are illustrated by the following testimony of Corcoran:
“The question of whether or not we would unite in co
Of the two contracts formulated by the committee, neither of them was signed by all the members.
Thereupon, on July 26th, Wallace & Linnane withdrew their proposition, and terminated all negotiations with the association and its membership as such. This was done formally, by letter sent to the president of the association, and read by him at a meeting of the association on the following day.
Thereafter, on the evening of July 28th, Wallace & Linnane sought an interview with these four defendants, and proposed to share the subcontract with them on the general basis originally proposed to the association membership. Thereafter, on July 30th, a written contract was entered into between Wallace & Linnane on the one hand and the four defendants op the other.
The crucial question of fact in the case is whether the negotiations between Wallace & Linnane and the four defendants, on their own behalf, began prior to July 28th,
It is urged, however, by the appellants that these four defendants were still the agents of their associates, and that they could not take for themselves what they had failed to acquire for their principals. But the question whether they, violated any legal duty depends upon the nature and scope of their alleged agency. The scope of agency of these defendants is set forth in the petition, in substance, as follows
“That, on or about July 7, 1917, said James A. Wallace, on the authorization and consent, and for and on behalf of the individual members of the said Master Plumbers’ Association, appointed an advisory committee from the members of said association, to reduce, or cause to be reduced, or to aid in the reducing of, the proposed contract between the Wallace & Linnane Company and the individual members of the Master Plumbers’ Association into writing. That said advisory committee, consisting of M. J. Corcoran, representing himself, George L. Walker, representing himself, John Thomas, representing the Thomas Plumbing Company, and C. W. Rosene, representing the Des Moines Plumbing & Heating Company, and all collectively representing the members of the Master Plumbers’ Association, as agents in the negotiation between the Wallace & Linnane Company and members of the association, for the purpose of reducing the agreement hereinbefore mentioned to writing, and in completing a contract between the said parties for the installation of the plumbing at the said cantonment.”
It will be seen from the foregoing that the scope of the agency was a definite and narrow one. They were simply to formulate a contract which should prove satisfactory to both the contracting parties. They had no discretion in the final acceptance of the contract. The proposed contracts
It may be noted, also, that two of these defendants, Corcoran and Eosene, did not, in fact, accept their appointment on the committee, and did not act thereon. For the purpose of this discussion, we have assumed that these defendants sustained a fiduciary relation to the membership
We reach the conclusion, upon the larger merits of the case, that there was no bad faith, on the part of these defendants prior to the termination of their alleged agency. The judgment dismissing the petition is, therefore, — Affirmed.
Reference
- Full Case Name
- Goff & Heger v. George L. Walker
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- 1 case
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- Published