United States ex rel. Continental Lumber Co. v. Embrey
United States ex rel. Continental Lumber Co. v. Embrey
Opinion of the Court
The Court now has this matter on plaintiff’s motion to strike defendants’ affirmative defense. Oral argument has been heard and counsel have submitted briefs. Defendant Harold Embrey, however, has answered separately and neither he nor his pleading is directly involved in this motion.
The transaction out of which this litigation arose was the construction of certain buildings for the United States of America at Mountain Home Air Force Base, Elmore County, Idaho. Plaintiff is a materialman and has brought this action under the Miller Act, 40 U.S.C.A. § 270b, et seq., against the above-entitled defendants who are the subcontractor, the general contractor, and the sureties of said general contractor respectively. The subcontractor, Embrey, answering separately, has affirmatively alleged that on August 25, 1954, he was adjudicated a bankrupt.
The affirmative defense plaintiff seeks to have stricken avers that before plaintiff had supplied any materials to
It appears that by their affirmative defense defendants have alleged facts sufficient to set up a contractual relationship between plaintiff and Kloepfer and Gramkow whereby plaintiff waived its materialman’s right under the Miller Act against said defendant and its sureties. It may be revealed that Mitchell, by his remarks and conduct at the said conference, made an offer to the general contractor which was accepted by that defendant’s actions in response thereto. 12 Am.Jur., Contracts, §§ 8, 43, 79, 113 and 114. Whether a valid contract did arise, however, is a question which the Court-will be better able to decide from the evidence.
Since the representations here in question were made with reference to a contingent right to arise in the future, the doctrines of promissory and equitable estoppel are not proper defenses. Cf. Annotation at 115 A.L.R. 152; also, 18 Fifth Dec. Digest, Estoppel, and the General Digests following. Defendants, therefore, must prove by a preponderance of the evidence that a valid contract arose between plaintiff and the general contractor, and that as a consequence thereof plaintiff waived its materialman’s right of action under the Miller Act. It is the law of contracts, not equity, which this affirmative defense invokes.
Accordingly, plaintiff’s motion to strike is denied without prejudice.
Reference
- Full Case Name
- UNITED STATES of America, FOR THE USE AND BENEFIT OF CONTINENTAL LUMBER COMPANY, a corporation v. Harold EMBREY, doing business under the name and designation of Standard Construction Company, and Frank P. Kloepfer and William Gramkow, Jr., doing business under the name and designation of Kloepfer & Gramkow, a copartnership, and United Pacific Insurance Company, a corporation, and Manufacturers Casualty Insurance Company, a corporation
- Status
- Published