27 Vt. 673 | Vt. | 1854
The opinion of the court was delivered, at the April Term, 1855, by
This being a bill brought to obtain payment for work done on the Vermont Central Railroad, beyond, or aside of the estimates of the engineers; and the contract, by which the company let the work to Belknap,, and also that by which he under-let a portion of it to the plaintiff, containing a provision, in these words, “ and the engineer shall be the sole judge of the quality and “ quantity of the work, and from his decision there shall be no ap- “ peal,” the recovery can scarely be claimed upon any other but one of two grounds; 1, that the engineers, without the fault of the plaintiff, have failed to make an estimate within the fair import of the contract; or, 2, that having made one, it is so erroneous, as not to be binding upon the parties, under the contract.
We think there can be no question that this stipulation does bind the parties to abide the decision of the arbitrator named, as much as that of any other umpire or arbitrator. And, in one sense, the submission to the determination of the engineer is more obligatory than any ordinary submission, inasmuch as being upon consideration, it is not revocable, and the obligation upon the defendants to pay, does not, by the terms of the contract, arise, until the
We need, perhaps, spend no time upon the question, what would be the rights of the defendants, if no estimates of the plaintiff’s work had been made by the company’s engineer. For the plaintiff bases his claim upon no such state of facts, and he cannot expect to recover upon a case not made in his bill. If the plaintiffs work had failed to be estimated, through the fault of the engineer, or the company, or Belknap, it does not now occur to me that there would probably be any difficulty in obtaining a recovery, at law.
But, the case which the plaintiff makes, in his bill, is, that the estimates were made regularly, but made intentionally too low, and improperly made. 1. It is charged that the chief engineer, at no time, made the estimates, as he should have done, but allowed them to be made by one Collins, in the latter portion of the time the plaintiff worked, who is called a sub-engineer, in the bill. 2. That before March 24, the plaintiff supposed the estimates correct, “ but “from subsequent discoveries, is led to believe that these are some- “ what too small, and were not as accurately made as they should “ have been.” This could scarcely be regarded as any charge of fraud or mistake in these estimates, or as any ground of claim against Belknap. But, 3d, it is charged, or stated, that the esti
II. We may here, perhaps, look into the general rules of decision in courts of equity, which must govern this case. The claim put forth in the bill, being either mistake or fraud in the estimates, is one clearly of equity cognizance. Fraud, accident, and mistake form
1. If the proof only establishes mistake in the engineers, but no undue influence over them by the company, and no suppression of the truth after the mistake is discovered, it would seem, upon general principles, the plaintiff cannot recover of the company, there being no such privity of contract and no such co-operation in producing the wrong, as is requisite to make them liable. It was, indeed, slightly'' claimed, on the hearing, that the company are liable upon the contract to Belknap for not employing proper engineers, or enough of them, at all times, as the injury fell upon the sub-contractors. But the proof is but imperfect upon any such ground. This portion of the claim was put mainly at the hearing upon the ground that the company had a fund designed to go to the orator, and which he may go directly against, even without joining Belknap, it would seem, as he is now dismissed
The creditors of an estate could not maintain a bill against the debtors of the estate, upon the mere ground of the indebtedness and insolvency, and this case viewed as a claim for mistake in the estimates merely, is nothing more. This is too familiar law to require debate or authority, which latter is indeed abundant. We may illustrate this by reference to the mistake of ten feet in the heighth of a bench on one of these points of excavation, which must have affected very essentially the proximate estimate, and which does not appear very satisfactorily to my mind to have been properly corrected, and which if it affected the monthly estimates to the same extent, would surely be such a mistake in the decision of the engineers as a court of equity would correct and give a remedy against Belknap for, so far as it was clearly shown to have lessened the amount allowed. But although this same decree of the court of equity might lay the foundation for a recovery by Belknap against the company, it would not enable the plaintiff to go directly against the company.
2. But if the proof establishes connivance on the part of the company or their agents in bringing about under estimates, (whether with the motive of ultimately making full estimates, and thus only obtaining relief in a moment of pressure, or of defrauding the contractors, and thus making a saving to themselves, is not essential, so far as the remedy directly against the company is concerned,) the plaintiff is confessedly entitled to a decree against them and their accomplices, for the loss thereby sustained. And he may probably claim a similar decree against Belknap, whether, as to him,
But the bill against the company makes no claim upon the mere ground of Belknap’s death and insolvency, and the company’s indebtedness for the same work to Belknap. All that portion of the agreement is then effectually disposed of by there being no such claim in the bill, as well as by its untenableness. But the bill claims to recover of the company for the “ new road for the removing of the loose stone left in the pit by Barker & Haight; and for building the blind culvert, upon the ground that this was work not within the contract with Belknap and done by direction of the company’s engineers. This claim as against the company seems precisely like that made in Thayer v. Vt. O. B. Go., 24 Vt. 440, and that decision is entirely satisfactory to the court, as applicable to the facts, in this case. There is not, in the evidence, the remotest probability that the plaintiff ever supposed he was doing this work on the credit of the company, and it is certain he had no just reason to suppose so. All the contracts in relation to this section expressly require that claims for extra work shall be supported by written orders from the engineer and be immediately presented for allowance. The plaintiff took no steps to j>erfect any such claim against Belknap, and there is not one particle of evidence to show that at the time the work was done, he ever expected to make any claim for it directly against the company. We must conclude then, that he did expect to have it estimated in the common course of allowance against Belknap, as most of it seems to have been, at something. The road on slip hill was so estimated, and the blind culvert; but it is said this was attached to a prior estimate, which had been paid. But if attached there, it seems to me, the engineer, on the most charitable construction, might fairly be presumed to calculate that it would be taken into
The supplemental bill further claims that the company shall be liable for all plaintiff’s loss by under-estimates, by reason of their connivance and collusion with Belknap and the engineers, in inducing such under estimates, and, also, on the ground of employing incompetent and unfaithful engineers, which seems valid, if proved.
III. The plaintiff’s claim then is narrowed down to 44,416 yards of earth excavation at ten cents, and 608 yards rock at eighty cents, and if this is made out upon the ground alleged, it might fairly entitle the party to recover for the amount reserved upon the estimates, already paid for, by way of damages, if the court should be satisfied that the plaintiff was compelled to abandon the contract, in consequence of these fraudulent under estimates. The right to recover to this extent must depend upon the evidence. There seems to be no other just impediment remaining as to this portion of the claim. This inquiry naturally and legally becomes two-fold. 1. Is there proof in the case, aside of the report of the masters and the evidence before them, to justify the reference ?
In regard to referring a case to masters, the chancellor undoubtedly exercises, to a considerable extent, a discretion where the
But upon the very point of the testimony being sufficient to justify a reference to the master, it seems to me, rather difficult to resist the conviction in the mind that the estimates made by the engineers, did not come up to the contract or to truth. The stipulation in plaintiff’s contract with Belknap is that “payments shall be made monthly of thrce-fourtlis the amount of the engineer’s estimate of work done,” referring very obviously to the monthly estimates stipulated for in the company’s contract with Belknap, for the kind of estimate and the manner of being made. By referring to this contract, it seems to me, that it can fairly be understood only as importing a conclusive estimate, monthly. There is certainly nothing in the contract and nothing in the character of the subject matter shown or known to us that would lead any one to expect that any more accurate estimate was to be made one time than another. This seems to have been an arrangement for the
It might be of some importance whether these estimates are considered to import merely the judgment of the engineer, upon the amount of work done, or an accurate measurement. But from the known practice in such matters, there seems no good ground to question, that the estimates stipulated for were strictly mathematical admeasurements. This being so, it is obvious to remark, that mistakes and under-estimates could be more readily ascertained, and more satisfactorily proved, and that the more frequently such estimates were made, the more accurately could the exact amount of excavation be known. If the final estimates were to be deferred till the work were completed, or nearly so, it must, from the very difficulty of knowing the form of the surface on slopes, be far more inaccurate, than the original proximate estimates. In looking into the estimates made for plaintiff after the 24th of March, the very form of the estimates, being in round numbers, shows, that for every month, except June and October, the estimates were nothing more than a mere arbitrary judgment, or conjecture, what we call, in popular language, a rough guess. The estimates then for April, May, July, August and September could not be regarded as any such estimates as the plaintiffs’ contract required. But being made and returned, they might require to be set aside, in a court of equity, to enable the plaintiff to recover, for any deficiencies in them. And we may suppose that such rough conjectural estimates would be liable to be very much swayed, by the slightest influence, either of the company or Belknap, and especially the former. And the June and October estimates being claimed to be final, this is claiming them all to be final.
All the testimony goes to show that, during the whole time, the company were pressed to the very verge of bankruptcy; and its officers, men of the most tried and chivalrous honor and integrity, to save the utter failure of one of the most cherished enterprises, felt compelled to drive the contractors off the road, north-west of Montpelier, unless upon particular points, requiring much time for their accomplishment. And although the plaintiff’s job was one of these points, yet, in one instance certainly, the president of the company did resort to an evasion with the plaintiff, which, if he had not bought off, must have put an end to his operations, and which was so expressly in violation of the company’s contract of letting with Belknap, by which they promised to assure the right of way, and so much in conflict with the general course of conduct of that high-minded man that when, in his testimony, he was inquired of in regard to it, he unhesitatingly disclaimed the transaction, as something which he could not have done, “because he had no right to do it! ” And still the fact is shown under his own hand, in regard to ■which there is, of course, no chance of error. And the president of the road told George W. Barker, that Belknap would not wish to pay the hands, on that part of the road, long, after the estimates were stopped. Some other witnesses testify to similar statements of Gov. Paine; Loomis Palmer for one, to his showing sensitiveness that the work was not discontinued towards Burlington. Some expressions of Paine, (as to Phinney,) show that he was willing to hold out that, if Belknap persisted in doing -work on that end of the road, the contractors would not get more than enough estimated “ to pay the shovellers.” I do not say how reliable this testimony is. The witness was not before us. But of Barker’s testimony there can be no doubt, or Palmer’s, or Paine’s letter, or of the general course of Paine’s talk, about this date, that money was so short that the work could not go on, at that end of the road, and if worst
It may be questionable how far this will justify a court in concluding that Gov. Paine, as president of the defendant’s company, had formed any deliberate purpose of defrauding the contractors. Knowing as much, as I think I did, of the man, it would produce no such effect upon my mind. And I could not justify it to my sense of justice, to find a fact, which I would not dare to say, in view of any present or future accountability, I believed; or which I should hesitate to state if the man were alive. But if the testimony clearly established a deficiency in the estimates to the orator, and I think that must be regarded as pretty satisfactorily made out, in various modes, I should conclude such talk of Paine, had an influence upon the subordinates of the company, even beyond what it was intended to have. And I am inclined to think Paine desired to have the estimates kept down to the very lowest possible point, during that severe pressure, and especially on that portion of the road. And such talk could not fail to be made known to the engineers, and with men of moderate capacity, and only a common share of firmness, it is impossible to conjecture how much the knowledge of such a desire, in a superior, who held the very means of their daily subsistence in his will and control, would be likely to influence their estimates, especially, when made, by mere guess, as it is evident most of these were.
It seems to me that the knowledge of such a desire, in the controlling power of the company, must have had a very marked influence upon the monthly estimates, where they were at all subject to variation, and that it might influence even those made from actual measurement.
Another proposition which seems to me fully established is, that the estimates do come very considerably below the proximate estimates on section eleven of the second division, allowing for slides which went into the river, and for those which had to be removed again. And these latter, it seems, the engineers treated as properly
This determination is here supported, too, by the plaintiff’s complaints at the time. But when I look into the report of the masters, it may be the nearest approach to truth, which can now be attained, but it seems to me a most extravagant finding, so extravagant, that it has at times staggered me in regard to the whole case, and half led me to conclude we should run the least hazard of being absurdly imposed upon, by dismissing the bill, and saying to the plaintiff, if he could not make a clearer and more rational case, he must not expect the estimates to be set aside. And the immense difference in the estimates of engineers, and in the results of the different modes of approximation, shows that there is no great certainty in this kind of proof. But the claim in the bill will limit the matter to one half the amount allowed by the masters, and I cannot but believe, from all the testimony and attendant circumstances, that this is twice as much as the real deficiency could have been. I cannot believe, any contractor, of half common sense, would submit for a single month, to half estimates; the very supposition is absurd! And then, even after this bill is brought the orator himself swears in his affidavit, which is part of the case, and which the court may look into, therefore “ I believe I have a just claim, &c. of about $4,000,” and finally obtains a decree for more than twice that amount, nearly three times. It is obvious to remark that such a suitor certainly was late in discovering the extent of his injury.
In regard to Belknap’s liability, no further discussion is necessary inasmuch as his contract with plaintiff must be regarded as binding him to see that the work was properly estimated. It would be absurd to suppose that the plaintiff would have bound himself to abide any other estimates. And as he could not look to the company for this, having no contract with them, he must rely upon Belknap, if any one. And Belknap’s contract with the sub-contractors must be regarded as a virtual endorsement of the same stipulations, which he had with the company, to such contractors, or
This will render Belknap liable on his contract for the mistakes in the estimates, and, as the bill sufficiently charges that, there is no need of looking into the question of his knowledge of the estimates being too low as they progressed, and virtually conniving at it, for the present, on account of the pressure and difficulty of obtaining funds. The testimony of Scott, the clerk of Belknap, which seems to me very reliable, certainly shows that Belknap claimed always a very considerable under-estimate in the work, as a whole, and that there was no pretence of his owing the company till after his death. And had he lived, there is, in my judgment, little doubt the balance would have resulted very largely the other way.
It seems to me, therefore, that some kind of reference to the masters of the court of chancery was justified by the state of proof in the case. But as the reference was made before the case was heard in the court of chancery, and very likely before the counsel knew much of the detail of the testimony, it went to the masters in a very loose and unsatisfactory manner. And going into the case, in this loose manner, and having kept no record of their proceedings, and the testimony given before them, and made no statement of the tacts proved before them, or found by them, it is perhaps no matter of surprise that the result to which they came, has but little applicability to the case, as it stood in court. But, for that or some other reason their report seems to us altogether unsatisfactory. And, although at first, I was inclined to patch it up, and let it stand for some $4,000, a critical examination of the case with reference to the authority, satisfied me it could not be supported to any extent.
I. It is altogether deficient in form. According to the English practice it contains almost none of the requirements of a master’s report in chancery.
1. It should contain a succinct statement of all the points made by counsel and of the facts found upon each point. This, in the English practice, is submitted to counsel, after being drawn up by the masters, at a meeting for settling the form of the report and noting all exceptions on either side. But in our practice, this
2. The masters have wholly omitted to report the testimony given before them. This, according to the English practice, is always required. It is not done as part of the report, but in separate forms, and filed in the proper office, to enable the court to revise the finding of the masters, if it is desired on any account. The rule is in these words, Order 69 of 1828, which is the earliest English order allowing the vim voce examination of witnesses before the masters, in taking an account, “ The master shall have “ power, at his discretion, to examine any witness viva voce, and “ the testmony upon such viva voce examination shall be taken “down by the master, &c., and preserved that the same may be “ used by the court, if necessary.” 2 Daniels Ch. Pr. 1387. This seems to us another fatal omission, in the report, and, one which, in a case like the present, renders the report of no value in the case. And, although, no request was made upon this point, and a loose practice may have prevailed in some parts of the state, it is no sufficient excuse for the omission. It is understood by the masters in some counties, and should be in all, that a copy of the viva voce testimony given before them, in taking the account, must
We ought, to prevent misapprehension, here to say, perhaps, that this rule will not excuse the master in doing what Lord Eldon calls emptying his wallet upon the shoulders of the court. He is still bound to state the account, at length, and all the facts found by him, so as to be intelligible without reference to the testimony. This is what Ch. Justice Williams is insisting upon in the case refered to in the argument.
II. But the report, itself, as far as we can comprehend the basis upon which it proceeds, is quite unsatisfactory to us.
1. It is more than twice as large as the amount claimed in the bill, and almost three times as much as the sum sworn to be due by the plaintiff in the outset, and to us it seems fair to conclude that, in the outset, the plaintiff himself would be likely to estimate his injury quite high enough, and if he is so unfortunate as not to do this, he ought to be content to lose the excess, as a just penalty for his excessive modesty or his uncommon stupidity.
2. Some of the details of the report seem to us equally incomprehensible. The plaintiff is allowed by the masters more than four times the amount of rock excavation which the engineers of the company estimated to him. This is done in a through cut, where there is no difficulty whatever in a common mason or teamster coming readily to a very near approximation of the actual excavation made from time to time. And to suppose that, when the pay
8. The slide of ten thousand feet of earth into the river, which is allowed by the masters at one thousand dollars, as earth excavation, seems to me manifestly not to come within any just idea of excavation under the contract. It does not seem to have been the result of any art or contrivance like bringing a stream of water to bear upon the bank, which has been treated as a legitimate mode of excavation under similar contracts. But this slide and others at this point, were altogether accidental and neither expected nor desired. Neither did they come within the range of what was originally intended as the bed of the road.
This slide, and numerous others, near the same point, resulted from the breaking away of the bank, from time to time, which rendered it necessary to carry the bed of the road further back into the hills. At the price agreed to be paid for earth excavation, these slides, at this point, would, in all, amount probably to nearly $10,000. And where they fell into the road bed, and were required to be again removed, the engineers uniformly estimated the removal. But where they fell at once into the river, from a point not originally, or until the convulsion, intended to have been excavated, there seems no more reason why they should be estimated as excavation, under the contract, than if the whole hill, from its very base, had been at once removed, by an earthquake or a volcano. It seems to us the engineers did right in rejecting this claim. And, right or wrong, their decision, if fairly made, is confln=ive upon the parties.
The point made in the case by the defendants, that the claim, as to Belknap’s estate, was barred, by not being presented to the commissioners, is regarded as fully settled, in this state, against the bar of claims exclusively of an equitable character; Sparhawk et als. v. Buel’s Estate, 9 Vt. 41. The same principle has been repeatedly recognized since.
We have not attempted to go into any consideration of the equities arising out of the relation of these defendants to each other. That subject is not properly before us at present. That could only properly be determined upon an issue between the defendants themselves.
The decree of the chancellor is reversed, and the report of the masters set aside, and the case remanded, to be proceeded with according to the decretal order on file, q. v.
At the November Term, 1855, the orator made a motion to amend the above mandate, which was sent by this court to the court of chancery, at the preceding term, particularly in regard to
It is well settled in this court, that, one decision of any point in a case, is to be held conclusive in that case. And even in cases where the court have overruled a decision made in one case, in some other case, this is no ground of altering the decision i:i any case where the decision was made before it was overruled. A contrary practice would lead to interminable reexamination of the same question, in the same case. So that it has been settled, since about the year 1825, that argument is never to be had, in this court, upon a question once decided, in the same case, whatever we might feel disposed to do if the same question should arise in some other case. Dana v. Nelson, 1 Aik. 252. This was a case in chancery, where a decision upon the demurrer to the bill was held conclusive of the law, upon the merits of the case, although by a divided court. But, in a case at law, or in a chancery case, upon its merits, no question has ever been made that one decision, as to the law of the case, made in this court, must be the law of that case, in this court, as well as in all other courts. Ross v. The Bank of Burlington, 1 Aik. 43. Under the former practice in this court, before the right of review was taken away, the party, upon review in this court, was allowed, as matter of right, to reargue the same questions of law, if he chose. Hazen v. Smith, 2 Tyler, 59 ; Chipman v. Sawyer, id. 61. But since the adoption of the present system, in 1825, when jury trials and reviews in this court, were abolished, and only questions of law revised here, and by parity of reason, when in 1840 a similar practice was established, in regard to chancery appeals, it was deemed incumbent upon the court to make every decision of a question of law, conclusive upon the particular case. Other cases may be found in the reports. No such question has been moved in this court for many years, the practice has been regarded as so fully settled. We never refuse to make the mandate conform to the decision of this court, when there has been any accidental omission, or mistake, which appears from the opinion of the court, which is not the present case.