R. S. Newbold & Son Co. v. Northern Dredge & Dock Co.
R. S. Newbold & Son Co. v. Northern Dredge & Dock Co.
Opinion of the Court
• Action to recover on contract, tried by the court without a jury. The findings were in plaintiff’s favor and defendant appeals from an order denying a new trial.
Prior to March, 1914, defendant had entered into a contract with the
On October 10, 1914, plaintiff, defendant and the engineering company made an agreement materially modifying the terms of the original contract for the construction of the dredge. A clause in this last contract has given rise to this litigation. It reads as follows:
“In the event that on or before January 1, 1915, the dredge * * * has been able to remove 325,000 yards or more under the contract with the park board of the city of Minneapolis, the party of the third part (defendant) will, at that date, execute a promissory note to the order of the party of the second part (plaintiff) in the sum of Two Thousand ($2,-000) Dollars, due and payable on or before September 1, 1915. It is expressly agreed * * * that the party of the third part will use its utmost endeavor to cause said dredge to remove the said amount of material, and that the said dredge shall be operated continuously so far as possible for that purpose.”
During the season of 1914, according to the engineer’s estimates, defendant’s small dredge removed from the lake 106,899, and the large one 319,864 cubic yards of material. On November 16, 1914, defendant ceased work and laid its dredges up for the season. It then believed that the large dredge had removed more than 325,000 cubic yards of material. At that time, on account of freezing weather, it was impracticable to operate the dredge, but thereafter and prior to January 1,1915, it could have been operated and would have been able to remove 325,000 cubic
•Shortly after January 1, 1915, plaintiff requested defendant to execute the $2,000 note mentioned in the contract, but it declined, on the ground that the dredge had failed to remove 325,000 cubic yards of material prior to January 1, and this action followed.
The court found that defendant might have operated the dredge longer than it did, and that, if it had been so operated, it would have been able, during the season of 1914, to remove 325,000 cubic yards of material under defendant’s contract with the park board. The sole' question presented is whether the evidence supports the finding. An examination of the record has satisfied us that it does.
Defendant agreed to operate the dredge continuously so far as possible and to use its utmost endeavor to cause it to remove the required amount of material. It was not agreed that it should actually remove the quantity specified, but that it would be able to do so if operated continuously. Defendant’s superintendent testified that he believed, when the dredge was laid up on November 16, that "Mr. Norbom had lived up to his contract and we thought that dredge was over. We thought the hydraulic dredge was away by. If-we hadn’t so thought, that it was going to earn
It is argued that, since the final estimate showed a total of only 306,198 cubic yards, it cannot be said that there was a substantial performance of the contract. We think the rights of the parties were not fixed by the 1917, but by the 1914, estimates. The contract provided that the note was to be given on January 1, 1915, and was to be payable on or before September 1, 1915.- The. parties did not intend to wait until the work was completed before carrying out this part of their contract. Its terms indicate a clear intention to make settlement at the close of the season of 1914- and on the basis of the engineer’s estimates during that season. The two dredges operated in 1914 removed the required quantity of material as specified in defendant’s contract with 'the park board. It has been paid the full contract price without deduction, the park board having accepted the work done, in 1914 as a satisfactory performance of its contract.
We think the findings of the learned trial court were in entire accord with the weight of the evidence and with the rights of the parties under their contract. The order denying a new trial is, therefore, affirmed. _
Reference
- Full Case Name
- R. S. NEWBOLD & SON COMPANY v. NORTHERN DREDGE & DOCK COMPANY
- Status
- Published