64 W. Va. 151 | W. Va. | 1908
Jacob Friedman owned a lot on the west side of Capitol street, in the city of Charleston, and upon it, under sealed contract with A. F. Withrow & Co. as building contractors, he erected a store building. G. W. Jobe made a contract with Friedman for putting shelves, counters and casings in the building, and other interior work, and the Charleston Lumber Company furnished Jobe materials
Friedman claims that he is entitled to deduct from the contract sum for the erection of the building at ten dollars per day for 121 days delay, beyond the time stipulated for the completion of the building, by reason of the following clause in the written contract: “Second, Should the said Contractor fail to finish and complete the said works, at or before the time set forth. shall- pay to the said Owner by way of liquidated damages, the sum of 10 Dollars per diem for each and every day thereafter that the said works remain incomplete and unfinished, unless the time be extended as hereinafter provided.” The contract dates 2*1 July, 1904, and provides that the contractors, A. F. Withrow & Co., “shall and will complete and finish on or before the 1st day of December, 1904, or in four months, all the works, buildings and structures herein provided for.” The building was not completed until April 1, 1905.
A vital question in the case is this: Is the provision for payment of ten dollars per day by the contractors to Friedman for delay over time in the completion of the work to be regarded'as liquidated damages or a penalty? If a penalty, equity will not enforce it; if damages liquidated by the contract, equity will enforce it. 2 Page * on Contracts, sec. 1167 says: “A contract for a penalty is an agreement to pay a stipulated sum in case of default, intended to coerce performance, to punish default, or to secure payment of the actual damages. A contract for liquidated damages is a contract by which the parties in advance of breach fix the amount of damages which will result therefrom, and agree upon its payment.” The intention governs. We find in 13 Cya 90 this statement: “The contract is to govern; and the true question is, What was the contract? Whether it was folly or wisdom for the contracting parties thus to bind themselves is of no consequence if the intention is clear. If there be no fraud, circumvention or illegality in the case the court is bound to enforce the agreement.” In Stony Creek L. Co. v. Fields & Co., 102 Va. 1, the law is stated as follows: “ Whether a given sum agreed to be paid in case of the breach of a contract is to be regarded as liquidated damages or as a penalty must depend on- the facts of the particular case, regardless of the name by which the parties have called it. If the contract is for the doing of a single
As to the matter of real justice Friedman swears that the contractors used no diligence, and that he complained of this to them from start to finish. The architects swear that they complained of delay again and again to the contractors, and even threatened to take the" contract from the contractors, and allow the owner to complete it under a provision of the contract. They swear that there was great delay on the part of the contractors in providing material, and they were incompetent. They are disinterested witnesses, while the contractors who imputed delay to extras called for by Friedman are deeply interested.
But it is said that the demand for such damages was waived. One ground for this is that Connell, one of the two architects, said to Kinsey and Jones, two of the contractors, that there would be no forfeiture for delay in completion. Connell flatly denies this. What if Connell did say so? He had no authority to dispense with an important provision of the contract. Page on Contracts, section 1465.
. Another ground of waiver alleged is, that Friedman said to one of the contractors, ‘ ‘ that as he did not get the build
Can this declaration count as an estoppel in pais? How would ' the contractors use it, this loose declaration, not contract? Would they say that it is a promise not to insist on the delay clause? Established law denies this. Mason v. Bridge Co., 28 W. Va. 639 holds: “The representation, to work an estoppel, .in all ordinary cases must have reference to a present or past state of things, not to a future matter or the expression of a mere intention or opinion.” In Jordon v. Mooney, H. L. Cases, 185, we find this: “When a person possesses a legal right, a court of equity will not interfere to restrain him from enforcing it, though between the time of its creation and that of his attempt to enforce it he has made representations of his intentions to abandon it. Nor will equity interfere even though the party to whom these representations were made has acted on them, and has in full belief in them entered into irrevocable engagements. To raise an equity in such a case there must be a misrepresentation of existing facts,
Excuse for delay in completion is also based on the claim that Friedman ordered extras and additions to the work. Here another clause of the contract is involved. “ 6th. Should the said contractors be obstructed or delayed in the prosecution of the said works by the act, default, neglect or delay of the said owner, or the said architects, or by reason of any change or changes in the said drawings and specifications as provided in article seven hereof; or elsewhere because of any other contractors employed by said owner, or architects upon said work, or by any damage which may happen by fire, lightning, earthquake, act of God, or cyclone, or by the abandonment of said works by the employees thereon through no default of said contractors, then the time herein fixed for the completion of said works shall be extended for a period equivalent to the time so lost by reason of any or all of the causes aforesaid. The duration of such extension shall be computed and certified in writing by the said architect to both the said owner and said contractors, but appeal from such decision within ten days after the same has been delivered to the said parties may be had to arbitration as provided in article seven hereof. Hut oio allowance for the same shall be made'unless a claim thereof is 'presented in writing, showing the reason .for such extension to the said architect before the next succeeding payment under this contract is made, as provided in anlicle eight thereof. A certificate or receipt of such payment or the payment made, next succeeding the cause for such extension shall be conclusive evidence that the. same has been allowed, or that the party then and thereby releases and waives any
No extension of time was given or asked. The contractors simply went on, taking their own time, .although speed was demanded, frequently by the two architects and Friedman, as they flatly swear. The active contractor superintending the work, states as a witness, that his firm had never in the past paid delay damages, and “we never thought there would be any trouble in the case; therefore, we were not as careful as we should have been in asking the architects to extend this matter in writing. We never have asked for a piece of writing yet, never asked an architect to extend our time and never paid a time forfeiture, and it is not our custom.’' Elsewhere he says he neglected to get an extension.
Now, the contract allowed Friedman to change and to make extras. If he did so he did no wrong. The contract in .such ease, by way of compensation, allowed the contractors to present to the architects a claim for extension, (it must be in writing) and bound the architects to give it, if based on good cause. The contractors must apply to the architects, stating reasons for extension, and then the architects were to say whether there was reason for extension, as between contractors and Friedman, and any extension must, by the letter and reason of the contract, be shown, not by slippery memory or depend on conflicting evidence, but on written certificate. No extension is allowed but one granted by the architects, and the contract makes their certificate of extension the only evidence of the extension. Will we abrogate this clause?. The contract limits the time for completion of the building. To protect Friedman against excuse for delay for extras or other causes, it demands that the contractors shall present their claim for more time to the architects, and they shall decide on its merits, and fix the additional time and not leave it open to controversy. The contract makes a written certificate the only evidence of extension. Fried
It was suggested that as, after failure to complete within time, the fact that the contractors were allowed to go was a waiver of the breach. This would be unreasonable. Friedman favored the contractors by not demanding, under the contract, that they give up the work. By consenting that they go on he did not waive damage. McIntire v. Barnes, 4 Colo. 285; Waterman on Set-off, sec. 515; Shute v. Hamilton, 3 Daly 462.
Strenuous argument was made at the bar that Friedman had suffered no damage from delay. Under facts stated above this cannot be true. It is hardly realizeable that a merchant carrying on in a populous community, in a city, a large retail store is not injured by a four months delay in completion of a new store building. He necessarily suffered some damage. But we need not inquire as to this, as the parties have themselves agreed that for failure of completion in the time specified damage would ensue to Friedman, and they' have measured the amount of damage. For this reason the law says that, in case a contract fixes liquidated damages, no proof further of damage is required. “ Proof of actual damage is not necessary. ” 2 Page on Contracts, sec. 1171; 13 Cyc. 90 in note 20.
The architects by their final certificate .allowed Friedman 103 days compensation at ten dollars per day for delay, excluding holidays. The contract provides that the work should be done to the entire satisfaction of the architects. Payment was to be made only on their certificate that the work was done according to contract. The contract makes the architects sole arbiters in this matter. Their decision is final. Plumbing Co. v. Carr, 54 W. Va. 272.
The architects gave Friedman a writing addressed to Friedman saying that “A. F. Withrow & Company, contractors for your new building on Capitol street are entitled to settlement, as per contract.” This is asserted to
The official report of the architects to Friedman gave him a deduction of $400 for defect'in plastering. This report or certificate, by the contract, is conclusive, because it made them arbiters, and declared that payment should be made only on their written certificate. The contractors can not recover for their plastering without such certificate, as it is a condition precedent to recovery. B. & O. R. R. v. Shoals, 56 Am. St. 14. 301 and note. Page on Contracts, sec. 1463. It must conform to conditions of the contract. 1 Wharton, Contracts, 192. We find ini Wharton, Contracts, sec. 594, that “No matter how arbitrary may be the action of the architect in refusing to give the- certificate required by the contract, yet, if he persists in refusal, the builder cannot recover on the contract price. ” You cannot control his judgment and discretion for the contract leaves the matter to his judgment.' Fraud is another matter. Plumbing Co. v. Carr, 54 W. Va. 212, holds the same as stated in Wharton. It refers to authorities for the proposition that the architect’s certificate is a condition precedent to recovery of the contract price. But it is said that the architects bound Friedman by acceptance of the plastering. This is asserted on the fact that Anderson & Cantley were subcontractors employed by the Withrow Company to do the plastering, and,, when they asked pay from the Withrow Company that com
The architects also certified to Friedman that he was entitled to deduction of $40 for a bad floor. The same remarks may be made as to this, except that the defense to it is weaker, as the architects declined to give a final certificate as to it, saying their functions had ended. We think Friedman is entitled to the deductions of $400 for plastering and $40 for the defective floor. These deductions and payments made leave nothing due the contractors.
Therefore, we reverse the decree, except as to the rights of the Charleston Lumber Company, which are reserved without prejudice from this decree, and the bill of the plaintiffs and answer of A. F. Withrow & Co. are dismissed as to, Jacob Friedman.
Reversed*