Ereño v. Porto Rico
Ereño v. Porto Rico
Opinion of the Court
delivered the following opinion:
In this case, the parties, by proper stipulation, waived a jury and tried the cause before the court. Much of the evidence had been previously taken by deposition, and that, together with what was taken orally on the recent trial, the pleadings in the ease, and the exhibits, raises all the issues of law and fact now ■ to be passed upon by the court.
The action is an ordinary suit in assumpsit to recover $2,4 6 G alleged to be due the plaintiff from the government of the island of Porto Pico on account of the fact that the plaintiff built a schoolhouse at Fajardo of dressed stone instead- of brick, as was contemplated under the contract between the parties.
The declaration alleges that a written contract was entered into in December, 1901, but the fact appears to be from the instrument itself in evidence, that it was entered into on June 29th of that year. The contract price of the building was $16,000, but that the plaintiff alleges that the agreement was verbally modified with the full knowledge and consent of - the
The declaration then proceeds to declare for the balance due, under all of the common counts, as fully as is the custom in a common-law suit in assumpsit';, that is, on account stated, for work done and materials- furnished, for money paid, laid out, and expended, and for money had and received, etc.
After some preliminary pleading, the defendant by its attorney general, by leave of the court first had, filed several pleas, setting up in detail its alleged complete defense to the whole cause- of action,, the substance of which pleas is:
(1) Denying each and. every allegation of the declaration.
(2) Alleging the entering into the contract by the parties, and that no modification-or change in the construction of the building was in fact, or could be, made under the terms thereof that would increase or diminish the cost of the work, except upon agreement in writing by the contracting parties, setting forth the changes to be made and the prices to be paid therefor, and
As the parties went to trial without objection on these pleadings, it will be assumed that a replication denying the pleas was considered as filed, especially as the proofs thereafter introduce^ were directed to an issue thus raised.
The contract for the construction of the building is quite specific in its terms, is signed by Dr. Brumbaugh for the island and by plaintiff on his own account, and is accompanied by the signed proposal of the plaintiff, offering to- do the work for $16,000. There was evidence in the case tending to show that plaintiff had never submitted a bid under any advertisement calling for the same by the island, but, -if he did. not, he certainly signed one of the blank proposals just before entering into the contract, as the paper is annexed to the contract now in evidence, and is signed by him. The contract is further accompanied by the specifications in detail and the bond of the contractor, as well as by a copy of the advertisement purporting to have been issued, and all of which, under the terms of the contract itself, are made a part of it. These papers are voluminoup and go into all the details connected with the work, and have the signatures of the parties on them at all proper .places. (
The material portion of the actual contract, which, it is contended, concludes the plaintiff, reads as follows:
“If, at any time during the prosecution of the.work, it be found advantageous or necessary to make any change in the specifications as to character and quantity, whether of labor or ma*294 terial, as would' either increase or diminish the cost of the work, then such change or modification must be agreed upon in writing by the contracting parties, the agreement setting forth fully the reasons for such change, and giving clearly the qualities and prices of both materials and labor thus substituted for those named in the original contract: Provided, that no payments shall be made unless such supplemental or modified agreement was signed before the obligation arising from such modification was incurred.
“No claim whatever shall at any time be made upon the commissioner of education of Porto Pico, by the party or parties of the second part, for or on account of any extra work or material performed or furnished, or alleged to have been performed or furnished, under or by virtue of this contract, and not expressly bargained for and specifically included therein, unless such extra work or materials shall have been expressly required in writing by the party of the first part or his successor, the prices and quantities thereof having been first agreed upon in writing by the contracting parties.”
■ The evidence in the case as to. whether or not there ever was any binding modification of the contract in question entered into between the parties is quite conflicting. It appears that plaintiff is a very intelligent man, and a contractor for such buildings of-considerable experience. That he had theretofore constructed schoolhouses for the island at Cayey, Aibonito, Manati, and two in Ponce. It appears also that he speaks only Spanish, and-that his transactions with the department were in that language when any of the officers could speak it and through an interpreter when they could not. The substance of his own evidence and claim is that Dr. Brumbaugh, who was then the commissioner of'education for the island, had called him from
Apart from the documentary evidence, the only other witness who tends to corroborate this evidence of the plaintiff in any way is that of Mr. Alberto F. Martinez, who was the interpreter that intervened between the parties at the time of the signing of the contract, and he testifies in substance that he is an employee of the department of education, or at least was at the time he testified. That Dr. Brumbaugh was the commissioner, and that the witness is general field superintendent of public schools and knows the plaintiff since 1901, because the latter was a contractor of school buildings for the island. That witness was interpreter between the parties at the time the contract for the sehoolhouse at Fajardo was entered into, and that he remembers, “that the Fajardo building was advertised for bids, but not awarded to anybody.” For what reason he does not know. That plaintiff was then sent for, and Mi*. Post offered him $16,000 to construct the Fajardo sehoolhouse. That then Mr. Post, the witness, and the plaintiff Avent into the commis
Much oral testimony was introduced in the case with reference to there being no sufficient quantity of brick for the building at Fajardo and with reference to there being a plentiful supply at Ponce and San Juan, and as to its price, and as to the difficulty of transporting it in ox carts or lighters from Ponce or San Juan to. Fajardo. As to all this, the plaintiff claimed that it could not be done as cheaply as stone would be, which could be procured much nearer, yet that the stone was more eostly than the local brick would have been, had it been obtainable; and that weather conditions and other causes prevented the brick from being made at Fajardo. In the view we take of the ease, it will not be necessary to consider this conflicting testimony.
Copies of letters were introduced, tending to show that Mr. Post, the architect, wrote to Mr. Bunker, the supervising architect on the ground at Fajardo, on November 11, 1901, or about four months after the signing of the contract, notifying Bunker that Ereño, the plaintiff, had been in to San Juan with the avowed purpose of filing a claim for additional money to complete the building in stone or to be allowed to finish it in brick from the second story up. In which letter Post says:
“The latter (finishing in brick from second story up) I would not consider for a moment, and as regard to the former (filing a-claim for additional money to complete the building in stone),*300 I told him that he made a proposition to me to construct building entirely of stone from ground up, and that I intended to hold him to his own proposal. I also explained to him that any claim which he might now make against the insular government should not receive attention for the reason that he could make no just estimate of the amount necessary to complete the building over and above his contract at this period and that it was useless for him to submit the claim at this time; The fact remains, however, that this claim will eventually come in and it will be necessary for us to be in a position to furnish any information required by the governor or the executive council or whoever may have charge of the settling of the claim, and for that reason I must request that you make careful notes of all events happening in the job, of the cost of stone at the quarry, at the playa, on the ground, in the rough and dressed, and also placed in the building. In securing figures on transportation, do not consider anything positive, facts or information, that you have any doubt is true. Keep a close record and we will be in a position to furnish any information that may be requested later. Mr. Ereño-informs me that the lumber for the second story left here Saturday. Drive the work as fast as possible or you will not be able to complete the building by the middle of December, at which time I hope it will be done.”
A letter from plaintiff to Dr. Lindsay, of date June 14, 1902,. is also in evidence, a translation of which is as follows:
“The undersigned, contractor for the construction of the Fajardo graded school, respectfully represents:
“In the month of June I bound myself with Mr. Brumbaugh to build the Fajardo school for the sum of $16,000, building to-be of brick. Dr. Brumbaugh assured me that I would not lose-any money, for I did not want to close the deal, believing that.*301 the sum devoted for the purpose was insufficient, but he assured me that I would not lose, as he would not permit it.
“1 was informed by the department that there was enough material at Fajardo, especially bricks, and that there were some 80,000 of them ready for the kiln.- I went to Fajardo and found that there were not enough bricks, and that if I waited I would lose a lot of time; so I proposed to the department to build the schoolhouse of stone, instead of brick.
“Now, Mr. Commissioner, it is, I think, a question of strict justice, and I trust that you will agree with me that it would be only fair to pay me the difference in cost from brick to stone. To this end, I am pleased to enclose a statement showing the difference between one and the other, amounting to $2,466.44. Knowing your sense of justice, in addition to the promise made by Dr. Brumbaugh, I have no doubt that you will kindly see from a just joint of view that I am only claiming what is lawful.”
There are many other letters from Bunker, the local supervisor, and others, to headquarters here at San Juan with reference to calculations, etc., and quantities of material, that we do not think it material at this time to set out. But the following letter from plaintiff to Dr. Brumbaugh, when the latter had left the island and was living in Philadelphia, we think is material:
“I have thought of writing to you, but until new I take that pleasure, compelled by the circumstances.
“I have no doubt that you will remember that when I undertook the work of building the schoolhouse at Fajardo, you told me that I would not lose any money in the building of said house. I took up the contract because it was assured to me by the architect that there was a great number of bricks at that time*302 in Fajardo, but when I went there to start the work I found that there was not a single brick. You had told me that you assured me I would lose no money if I built the schoolhouse for $16,000, and that you would see that I would not lose at all. Well, as I found no brick, I did the work with stone, and have delivered a building far better than the one I would have if made with brick. Now you know very well that there is a vast difference between brick and stone, and I have applied to the commissioner of education to give me the difference in cost, as I lose in the transaction over $2,000. Iiis answer was that all your promises by word did not count, and that is the reason why I write to you, asking you to kindly write to me and tell me if it is true that you promised me that you would see that I would not lose any money. I know that you are a just man and that you are equitable in all your deeds, and therefore I have no doubt that you will kindly help me in this, as I do not think it is right for me to lose that amount.”
Also Dr. Brumbaugh’s reply, under date of October 6, 1902, to plaintiff’s letter above:
“Your favor reed, and I beg to say in reply that I recall the' day we opened the bids for Fajardo schoolhouse. Your bid was over $17,000. I rejected all because I knew that the building was not worth that much to the island and I was very anxious to do what was right between the people and the contractor. Then, when I rejected all, you and I and Mr. Post had a talk in which we gave it as our opinion that the building was worth not over $16,000, and I offered you the contract at $16,000. You took it and afterwards I learned from Mr. Post that you had decided to build it of stone. I am quite confident that I never pledged the island to any additional sum. In fact I could not. The payment was made in a contract duly made and the amt. was set*303 forth in the contract. I could have no way to draw one cent from treasury save on warrant based on contract, and the auditor would be very sure, and rightly so, to deny any payment not warranted according to law.
“I am as sorry as anyone can be if you lost money on the contract. I still feel that it was a fair price for the work and that I did all I agreed to do in the matter.”
Dr. Brumbaugh in his deposition totally denies ever making any agreement of any kind with plaintiff other than that set out in the contract, and denies that anybody else had power to in any manner change the contract without his consent. The substance of his deposition is as follows: That he is forty-three years of age and a professor in the University of Pennsylvania. That he lived at the time in question in this suit in San Juan, Porto Eico, and was commissioner of education there. That as such commissioner he entered into contracts for the erection of school buildings, etc. That he entered into the contract in question with this plaintiff. That he had agreed with the people of Fajardo to provide them a ten-room school building, for which purpose he had set aside a maximum allotment of $16,000, which sum was based on a careful estimate of the cost of such a building at that place, made by the architect of his department, Mr. Post. That specifications thereunder were drawn and an advertisement published for bids. That when they were opened, they all exceeded the maximum allotment by more than a thousand dollars. That Mr. Ereño, plaintiff, was the lowest, but still exceeded $17,000. Whereupon witness announced to them all that the department rejected all the bids. That all the bidders then retired from witness’s office, but that witness understood from Mr. Post that the plaintiff went with' said Post to the latter’s room in the department
Dr. Lindsay, in his deposition, states that all the conversations he ever had with plaintiff previous to about one year after signing the contract was urging him to complete the building. That in the month of June, 1902, plaintiff made a claim for $2,466.-44 to him, stating that it was the loss he had incurred on the contract, due to the change in the specifications by substituting stone for brick, but that he produced no supplementary contract to support such demand. That witness asked him to put it in writing, which he did June 14, 1902, and that after careful examination of all records in the office, witness refused to ap-
Mr. S. B. Bunker, thirty years of age, and a civil engineer in New York city, who was the supervising architect of this building when the work was done, testifies that stone was substir tuted for brick at the request of the contractor on account of the shortage of the brick supply. That there were only some 10,000 bricks ready when plaintiff arrived at Fajardo to begin the work and about 20,000 more unburned, and that then, in order to facilitate the construction of the building, plaintiff requested that
Charles G-. Post, the architect, deposed that he is thirty-seven years of age, an architect, and lives at Dobbs Ferry, New York. That he has had twelve years’ experience in his profession. That his duties when on the island were those of architect, business manager, and supervisor of construction. That he drew plans for all buildings erected by the department, wrote the specifications, prepared the contracts, investigated the sureties, etc., and employed a corps of assistants about the work. That he had absolutely no authority over contractors. That he could not compel a contractor to remove material or correct work,
From the foregoing rather lengthy record and statement o,£ the case, it can be seen that there was a deliberate, specific, binding contract entered into by plaintiff for the construction of this building for the price of $16,000. It does not require much effort to see the real facts in the case, and to understand exactly how the controversy arose. Dr. Brumbaugh and Mr. Post no doubt did do 'a good deal of talking to induce plaintiff to take this contract, but it is manifest that neither one of them ever promised to pay him for the extra cost of the change from brick to stone. All that Dr. Brumbaugh ever said to him about it, even according to plaintiff’s own statement, was that he should not lose any money; but that was before the contract was made. The elementary proposition of law that all bargains, contentions, and agreements that result in a writing between the parties, merge in the ■writing,- and that parol evidence is not accepted thereafter to vary the written instrument save under well-known ru^es, need not be discussed here..
Were this an action to cancel or reform the contract, or a defense against an action for a breach of it, plaintiff would be in a better position than he is. If he found, on going to Fajardo, that he had been deceived as to the quantity of material available, he could have refused to proceed with the work until a different contract had been entered into. Ricker v. Sanitary District, 89 Fed. 251. The law will not permit him to continue the work un.der a contract, and, by a mere unilateral claim that lie. should have- more compensation, compel the island to pay an increased price for the work. Without positive evidence that a new:.contract,.for a proper consideration, has been entered ini»
This plaintiff well knew that the commissioner, Dr. Brum-baugh, was the only person who could make or modify these building contracts at that time. He had erected several structures for the island. Ho matter how much he talked to Mr. Post, the architect, it is in evidence that when anything definite was to be done or any agreement made, Mr. Post and plaintiff always went to the commissioner, Dr. Brumbaugh, to see whether it would be agreed to. It was the duty of plaintiff to know what Post’s authority was, and to know that under his contract he could not demand extra compensation save on a modification of the contract in writing, according to the extract copied supra, or on a direct 'promise to' pay, properly acquisced in. Bowe v. United States, 42 Fed. 778. Individuals as well as courts must take notice of the extent of authority conferred by law upon a person acting in an official capacity. Whiteside v. United States, 93 U. S. 247, 23 L. ed. 882; Hawkins v. United States, 96 U. S. 689, 24 L. ed. 607. The only person who could, it seems, under the law, have entered into this alleged modification of the old contract or agreed to the alleged new one, was the commissioner, and he, as well as Mr. Post, emphatically denied it. It is regrettable if plaintiff in fact lost money on this building, but even then, there is evidence to show that it
This same work of Mr. Wait cites many cases in support of the doctrine that the person in charge of the work cannot order extra work verbally when the contract itself requires the order to be in writing, and the court goes so far as to say that the contractor in-such case cannot recover from the company for such extra work, either in a court of law or a court of equity. Citing Woodruff v. Rochester & P. R. Co. 108 N. Y. 39, 14 N. E. 832, and other cases. And again, in a note to § 554, he cites, in support of the same position, Bonesteel v. New York, 22 N. Y.
When alterations and changes are merely assented to and there is no agreement as to value and cost, the presumption is that no increased cost was contemplated. Wait, supra, § 566, and eases cited; Badders v. Davis, 88 Ala. 367, 6 So. 834;, Bryant v. Stilwell, 24 Pa. 314; Jones v. Woodbury, 11 B. Mon. 167; District of Columbia v. Gallaher, 124 U. S. 505, 31 L. ed. 526, 8 Sup. Ct. Rep. 585.
The mere circumstance of the owner knowing that the extra work was doing, and not objecting to it, does not raise a com tract on his part to pay plaintiff for it. Belt v. Cook, 3 Cranch, C. C. 666, Fed. Cas. No. 1,282.
Some considerable evidence was introduced with reference to the final settlement between the parties, and the acceptance by plaintiff of the $1,090.86 and giving a receipt in full. 'We do not think much importance can be attached to this fact, because it is well settled that the circumstances concerning the giving, of a receipt in full can be shown in an action between the parties regarding the subject-matter for which it was given, and it can be shown that it was a mistake, if in fact it was. The taking of a balance and giving such a receipt is of course evidence for the jury that it was intended as accord and satisfaction. Pray v. United States, 106 U. S. 594, 27 L. ed. 265, 1 Sup. Ct. Rep. 483; Tanner v. Merrill, 108 Mich. 58, 31 L.R.A. 171, 62 Am. St. Rep. 687, 65 N. W. 664; Fire Ins. Asso. v. Wickham, 141 U. S. 564, 35 L. ed. 860, 12 Sup. Ct. Rep. 84.
For the reasons here given, the court finds the issues for the defendant, with costs, and a judgment to that effect will be entered.
Reference
- Full Case Name
- CARLOS EREÑO v. THE PEOPLE OF PORTO RICO
- Status
- Published