Camden Iron Works v. Sewerage & Water Board
Camden Iron Works v. Sewerage & Water Board
Opinion of the Court
Plaintiff, a New Jersey corporation, entered into a contract with the defendant, the Sewerage, and Water Board of the city of New Orleans, for furnishing iron piping; and this suit is for $32,600, a balance alleged to be due on the contract price. The record and the briefs are very voluminous, and the matter very intricate at first sight, embracing a world of figures, tables, maps, diagrams, a contract of 14 printed pages, a large number of letters full of dates, figures, etc.; but when one comes to understand it fully it becomes very simple.
The defendant board advertised for bids on six contracts designated as A, B, O, D, E, and P; and all were awarded to plaintiff. The $32,000 now sued for was retained by the defendant board as liquidated damages for delays in delivering the pipes under contracts A and B. The other contracts O, D, E, and E, were duly carried out, and are not at all involved in this suit. In reducing the contracts to writing, all were embodied in one document, but with the understanding, duly expressed in a special clause, that they should continue to be separate contracts, each calling for a penalty of $100 per day, by way of liquidated damages, for every day’s default in delivery under it; that is to say, as many of the contracts as were defaulted on, so many $100 per should be forfeited.
Plaintiff has reference here to the fact that the pipes for contracts A and B were ordered and delivered together; that is, without designation of which were for A and which for B.
But, obviously, this was a matter of mere bookkeeping. What difference could the manner of ordering and delivering make, so long as the quantity that could rightfully be ordered under each of the contracts was known. Plaintiff does not pretend that it was embarrassed in its deliveries, or in any other way prejudiced, by this manner of ordering.
The answer to this argument is that all of the sizes not called for by contract A were attributed to contract B, and that the
The correctness of this apportionment as made is not contested, but the right to make it is. And the reason assigned is that such an apportionment might lead to the absurd result that on an order, for instance, of 1,000 tons of 12-inch pipes, ,970 tons would under this apportionment be apportioned to contract A, and only 30 to contract B (the proportion between the two contracts in the quantity of pipes of that dimension called for by each being as 97 to 3), and thus default in delivering the 30 tons would entail as great a penalty as default in delivering the 970 tons.
We can see nothing absurd in this situation. Failure to deliver one single pipe would entail the penalty as effectually as failure to deliver a thousand. Inability to have one needed pipe might cause as much embarrassment to the contractor laying the pipe lines as inability to get a thousand. And again,- if, on receiving the order for the pipes, the plaintiff company had desired to apportion them in the shipment so as to avoid incurring the penalty under one of the contracts, the fact that the order had been given in globo for the two contracts would not have been an obstacle to its making such apportionment. Plaintiff, obliged by its contracts A and B to deliver 970 tons of 12-inch pipes for contract A and 30 tons of same dimension for contract B, and receiving an order for 1,000 tons of that dimension for the two contracts, might in making the shipment have specified that so many were for A and so many for B, if it could thereby have avoided the penalty for delay under one or the other of the contracts and had desired to do so. Plaintiff not having made the apportionment, we do. not see why the board was not at liberty to apportion the shipment to the two contracts pro rata as has been done.
We can discover in this case no room for the application of this principle. The object of this monthly limit of quantity was simply to protect the defendant board against being required to receive a larger quantity of piping than it could conveniently dispose of, and to protect the plaintiff against having to make larger deliveries than it could conveniently negotiate. And, as a matter of fact, the plaintiff never exceeded the 1,300 tons per month limit; On April 30th, when its first shipment was made, it was due approximately 1,950 tons, and the shipment was of 873. On June 4th, when its second shipment was made, it was due, say, 3,250, less the first shipment of 873, or 2,-377, and this second shipment was of 861; on July 17th, when its third shipment was made, it was due 5,200, less the two previous shipments of 1,734, or 3,666, and this third shipment was of 2,794; and so on to the end. True, the defendant board gave the orders somewhat in excess of the monthly quantity limit; but that it did not intend thereby to waive the benefit of this limit is shown by the fact that it promptly protested against an announced excessive shipment by plaintiff which might have caused congestion. (The shipments, it may be well to mention here, were not for contracts A and B alone, but also for contracts C, D, E, and E.) The sole effect of this ordering in advance was to afford the plaintiff more ample notice. Moreover, the correspondence of the parties shows that the defendant board began early to complain of plaintiff’s delay in delivery, and continued to do so practically throughout the ten months during which deliveries were due.
Plaintiff’s present contention, of the entire $32,600 having been improperly retained, would seem to have been an afterthought, originating with the new manager of its home office, after the former manager had recognized the propriety of the $100 penalty being assessed as to one contract.
Two estoppels are pleaded by the defendant board: One founded on the fact that the periodic estimates called for by the contract to be furnished by the defendant board to plaintiff, upon which payments were to be made, were duly furnished to plaintiff’s local agent, and were accepted without protest although containing the deduction of this $100 demurrage penalty on both contracts; and the other founded on the fact that the plaintiff accepted the final payment without protest, and that by section 69 of the specifications of the contract it is provided, as follows:
“The acceptance by the contractor of the last payment shall operate as and shall be a release to the board from all claims and liability to the contractor for anything done or furnished for, or relating to the work, or any act or neglect of the sewerage and water board relating to or affecting the work, except the claim against the board for the remainder, if any there be, of the amount kept or retained as provided in paragraph 66.”
The reference here is to the 10 per cent, on the contract price, and not to the $100 penalty involved in the present suit.
The case is with the defendant board without the aid of these estoppels;, but we may add that we fail to see how the plaintiff
Judgment affirmed.
Reference
- Full Case Name
- CAMDEN IRON WORKS v. SEWERAGE AND WATER BOARD OF NEW ORLEANS
- Status
- Published
- Syllabus
- (Syllabus by Editorial Staff.) 1. Damages Where a number of contracts with a sewerage and water board to furnish iron piping were awarded to plaintiff and were all embodied in one written contract with a provision, however, that they should continue to be separate contracts, each calling for a penalty by way of liquidated damages for every day’s default in delivery, the fact that the pipes under two contracts were ordered and delivered together, without designating which were for each contract, did not coalesce tho two contracts into one so as to prevent recovery of more than one penalty. [Ed. Note. — Eor other cases, see Damages, Cent. Dig. §§ 179-181, 183-187.] 2. Damages Where plaintiff in making shipments did not apportion the shipment to the two contracts, the board was within its rights in apportioning them in proportion to the amounts called for ■by each contract, though this imposed on plaintiff as^ great a penalty for delay in delivery of a few pipes under one contract as for delay in delivery of a much larger quantity under the other contract; the failure to deliver a single pipe entailing the penalty under the contract. [Ed. Note. — Eor other cases, see Damages, Cent. Dig. §§ 179-181, 183-187.] 3. Damages &wkey;>85 — Liquidated Damages — Amount — Evidence. There was no merit in the claim that it was not possible to know on which contract the delays occurred, where there was positive and uncontradicted testimony of the board’s engineer, based upon dates and figures in the record, that plaintiff was in default on both contracts for the number of days for which the penalty was claimed. [Ed. Note. — Eor other cases, see Damages, Cent. Dig. §§ 179-181, 183-187.] 4. Damages A contract with a sewerage and water board for the furnishing of piping fixed 1,300 tons as the quantity that might be ordered each month. Though the provision for uniform ordering and delivering of this quantity each month was disregarded and the board, gave orders somewhat in excess of the monthly limit, the contractor never exceeded that limit, the board on one occasion protested against an announced excessive shipment, and continuously throughout the period during which deliveries were due complained of the contractor’s delays in making delivery. Eeld, that the recovery of the stipulated penalty by way of liquidated damages could not be defeated on the theory that the parties by a long course of business had established a manner of executing the contract different from its strict letter. [Ed. Note. — Eor other cases, see Damages, Gent. Dig. §§ 179-181, 183-187.] 5. Contracts A provision in a contract to furnish iron piping to a sewerage and water board that the acceptance by the contractor of the last payment should be a release to the board from all claims and liability to the contractor except the claim for a retained percentage of the contract price was not without mutuality, though, by a different provision, the board was not concluded in like manner by any estimates furnished or payments made, as the provision in question had for its consideration, the obligation of the board to receive the pipes and pay for them. [Ed. Note. — Por other cases, see Contracts, Cent. Dig. §§ 32, 37.]