McDowell v. Hutchinson

Citations

• 123 Pa. 381
• 16 A. 753
• 1889 Pa. LEXIS 663

Syllabus

<p>(«) McDowell made a contract with a bridge company to build their bridge according to specifications, in consideration of $650,000, payable part in corporate bonds and part in common and preferred stock. Hutchinson then made a contract with McD. to advance money or loan his credit to the amount of $270,000, to enable McD. to complete the bridge.</p> <p>(■b) In the latter contract, McD. guaranteed tiiat the cost of the bridge should not exceed $290,000, and the right to receive the securities was transferred to II., who was to be repaid his advances with interest, and to have as his own one half of the securities after the cost of the erection of the bridge was paid.</p> <p>(e) By proceedings at law the height of the bridge was increased to accommodate navigation, thereby necessitating a change in the specifications: II. furnished but part of the money, and ceased compliance with Ms contract, whereby McD., to perform his contract with the bridge Co., was compelled to negotiate bridge bonds and stock at a loss of $30,000 upon their value.</p> <p>(d) McD. and 11. failing to effect a settlement, II. brought an action at law against the bridge Co. for the delivery of the securities undelivered to him, and subsequently McD. filed a bill against II. and the bridge Co. to stay the suit at law, to have his contract: with H. canceled as of the date when the latter ceased performance, and for an account, etc.</p> <p>1. In such case, the increased cost of the bridge arising from the operation of the decree of court increasing its height, was to be added to the $290,000, the limit of cost tinder the contract.</p> <p>2. McD., who kepthis contract under a vital breach of it by H., but failed to rescind thereon with promptness, could not have the contract canceled as of the date of H.’s failure to perform, hut must stand upon the contract and recover damages for its breach.</p> <p>8. H.’s covenant, whether dependent or independent, was kept in part and broken in part, and the me