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Maps, plates, charts, etc.. may be filmed et different reduction ratios. Those too large to be entirely included in one exposure ere filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les csrtes, planches, tableaux, etc., peuvent Atre filmte A des taux de rMuction diffArents. Lorsque le document est trop grand pour Atre reproduit en un seul clichA. il est filmA 6 partir de Tangle supArieur gaudie, de gauche A droite, et de heut en Ims, en prenant le rtombre d'images nAcessaire. Las (fiagrammes suivants illustrent le m^thode. 1 2 3 1 2 3 4 S 6 NORTH SHORE RAILWAY : LEGAL PROCEEDINas. SEYMOUR versiis McGREFA'Y. AOBEEMENT of AOOtTST 18TH 1876. QUEBEC. 1876 & 1877. nSilyO/J » t • I • • « • .• I* ••«•••• •.I • • •• « • • < • • • • •••••• • « • • • • • > ^ .Jjj,» M Pro No. MEMORANDUM OF LEGAL PROCEEDINGS, Based upon Agreefnent dated August i8th, 1875, CANADA, ) Province and District) OF Quebec. No. 2329. dii \\it ^ttjjeriar Cjaurt, SILAS SEYMOUR, PlainUff, versus Hon. THOMAS McGREEVY. Defendant. Messrs. TASCHEREAU & FORTIER, Attorneys for Plaintiff. Mr. R. ALLEYN, Q. C, Counsel. Messrs. ANDREWS, CARON & ANDREWS. Attorneys for Defendant. Mr. C. a. HOLT. Q. C, Counsel. 5942*^ o PP'"«""""^W"^»W"«I PLAINTIFF'S DECLARATION. The Plaiutift'iu tho annexed AVrit described, complains of the Defendant, also therein described, and represents : That the Plaintiff is and has been for many years, a General Consulting Engineer, acting as such more espe- cially in so far as relates to the construction and equipment of Railways, at Quebec and elsewhere. That the Defendant was, from the twenty-first day of February, eighteen hundred and seventy-four, to the twenty-fourth day of September, eighteen hundred and seventy-five, the Contractor for the construction of the North Shore Railway, then being built and constructed by the North Shore Railway Company, a body politic and corporate. That in the month of August last, the Defendant entered into negotiations with the Government of the Province of Quebec, with a view of obtaining from the said Govern- ment the contract for the building of the said North Shore Railway, on the basis of a cash consideration ; or of being relieved from the contract already entered into for the construction of the said Railway, which it was then ex- pected would be taken in hand and built by the said Government. i LEGAL PROCEEDINGS. That during the said negotiation^, the said Defendant applied to the Plaintiff as General Consulting Engineer, as aforesaid, for his aid and assistance therein. That on the twenty-fourth day of September last, the said negotiations ended, and a contract was entered into betwoen the Governmeni of the Province of Quebec and the Defendant, for the construction of the said North Shore Railway, for a cash consideration to be paid the Defendant for performing the contract therein m«»ntioned ; which contract was subsequently ratified and approved by the Legislature of the Province of Quebec, on the twenty- fourth day of December last ; and the said Government authorized to carry out the same, and to build and con- struct the said road. That during all the said negotiations, the said Defendant had the aid, assistance, counsel and advice of the Plaintiff, as General Consulting Engineer, as aforesaid ; and that the Plaintiff rendered the Defendant many and important services in connection therewith, all of which enured to his profit and advantf>ire. That in consideration thereof, the said Defendant, by paper writing bearing date at Quebec, the eighteenth day of August last, promised and bound himself toward the Plaintifi" as follows : " In consideration for your extra services, (to wit : those " above mentioned) I hereby agree that if I close an " arrangement with the Provincial Government of Quebec, " by which the Government either takes the North Shore " Railway contract off my hands, or pays me a cash con- " sideration for performing the contract, I will pay you " five thousand dollars upon the closing of such an ar* plaintiff's declaration. $ " rangement, also five thoiifiand dollars additional within " one year from that date, and live thousand dollars addi- " tional within two years from that date, making in all '• fifteen thousand dollars." That in view of the premises, there is due by the De- fendant to the PlaintitF, the sura of five thousand clollars, being the amount payable upon the closing of the said arrangement, which ihc Defendant refuses and neglects to pay, though often thei- anto required. "Wherefore, the Plcmtifl' prays r^dgment against the De- fendant >r the sum of five thLusand dollars, with interest alid costs. Quebec, Slh June 1870. kse an jre Ion- JOVL laT- 11: I • I i DEFENDANT'S ANSWER. And the siid Defendant, for answer unto the demand of the said Plaintiff, in the Declaration of the said Plaintiff* in this cause fyled contained, not confessing nor acknowledging any of the matters or things in the said Declaration set- forth and alleged to be true, save and except as hereinafter stated, by this his perpetual Exception p&remptoire en Droit, saith that the said PlainlifF, bylaw, cannot at any time have or maintain any action against the said Defendant for or by reason of the matters and things in the said declaration set forth and alleged, or in of any or either of them. For that during all the period during which the said Plaintiff in his said declaration alleges that he performed services for the said Defendant, he the said Plaintiff was the salaried officer of the North Shore Railway Company, to-wit : at a salary of five thousand dollars per annum, which salary was paid him during all the said period ; and any matter or thing done or performed by the said Plaintiff duing the said period, in relation to, or connec- tion with the said N orth Shore Railway, or its construction, or in relation to tl e contract for the construction thereof, was so done and performed by him, the said Plaintiff", as such salaried officer of the said Company, and not for him the said Defendant^ or in his the snid Defendant's interest. D«.FENDANTS ANSWER. That the continuing by the said Plaintill" to hold the said office under the said Company, disqualified and pre- vented the said Plaintiff from rendering the said Defendant any services in connection with the said Railway, its con- struction, or the contract for its construction. And in fact the said Plaintiff, far from rendering the said Defendant such services, or in any manner advancing the interests of the said Defendant in the promises, acted adversely to the Defendant's interests, opposed the Defendant's wishes and desires in the matter, and purposely injured the said De- fendant, both by his words and deeds, in connection with the said Railway, and with the Defendant's negotiations with the Government of this Province ; and generally in all matters in relation to the Defendant's contract for the construction of Lhe said Road, and the ratification by the House and Legislature of this Province, of the contract between the said Defendant and the Government. That the said Plaintiff never performed any of the ser- vices contemplated or alluded to in the paper- writing, or missive in his said declaration referred to, or attempted, or was willing to perform the same or any of them. Wherefore the said Defendant prays the dismissal of the Plaintiflfs action in this behalf, with costs. And the said Defendant, for farther plea to the said ac- tion, and without waiver of the foregoing, saith : That the said Plaintiff, deceitfully pretending that he had rendered him, the said Defendant, assistance and services, which in fact he had not rendered ; and concealing from him the fact that he had on the contrary, acted adversely to his the Defendant's interest, obtained from the Defendant a sum of two hundred dollars, paid by him, the Defendant 6 LEGAL PROCEEDINGS. f! fii to J. Gr. Colston, Esquire, Advocate, at the request and upon the written order of him the said Plaintiff; and also obtained from him, the said Defendant, his the Defendant's two negotiable notes, dated at Quebec, , the first of May, eighteen hundred and seventy-six, for the sum of twelve hundred dollars each, and payable, respectively, three and four months after their said date ; and which said notes, he the Plaintiff" has negotiated and received the proceeds of; and he the said Plaintiff* has also had an4 received of the money of the said Defendant, paid to him by the Gov- ernment of this Province, between the first day of Novem- ber last, and the first day of May last, as salary as Consult- ing Engineer, a further sum of two thousand five hundred dollars, which sum he the said Plaintiff" was not entitled to, and did not earn ; inasmuch as the said Plaintiff" did not render the said Defendant any services during the said period, and was not in his employ during the said time ; and he the said Defendant is entitled to set up in compen- sation, and doth hereby set up in compensation the said' several sums, against any demand which the said Plaintiff" may legally have or prove against him, the said Defendant, for or by reason of any of the matters or things in his said declaration referred to ; and the said demand hath thereby become and is paid, and satisfied, and discharged. Wherefore the said Defendant humbly prays that for the causes aforesaid, by the Judgment of this Honorable Court, the said compensation be declared, and the action of the said Plaintiff, in this behalf, be hence dismissed with costs. Quebec, July 6, 1876. i d d Id- fF Ld •y le t, le ADMISSIONS BY DEFENDANT. See an.sicefs to Articulation of Fads. 1. That Defendant was, from Fobruaiy 21st 1874, to September 24th 1875, the Contractor for the construction of the North Shore Railway, under the Railway Company. 2. That in August 1875, Defendant entered into negotia- tions with Government, with a view of obtaining a con- tract for building the North Shore Railway, on the basis of a cash consideration. 3. That on the 24th September 1875, the said negotia- tions ended, and a contract was entered into between the Government and the Defendant, for the construction of the said North Shore Railway, for a cash consideration to be paid the Defendant for performing the Contract. 4. That the said Contract was subsequently ratified and approved by the Legislature of the Province of Quebec, on the 24th December last. See answers to Ffiits ef A rticJes. 5. That Defendant had communications with the Plain- tiff, as General Consulting Engineer, during all said nego- tiations, concerning documents which the Plaintiff stated y '*! 8 LEGAL PROCEEDINGS. that the Treasurer of the Province had put into his, the riaintifTs hands, to prepare n contract with the Govern- ment, and assist him. the Treasurer, in making a contract. That was iu the month of August. 6. That Defendant siirned a document, bearing date at Quebec, August 18th 1875, by which he promised and bound himsi^lf towards the Plaintiff, as follows : " In consideration for your extra services, I hereby agree, that if I close an arrangement with the Provincial Crovernment of Quebec, by which the Government either takes the North Shore Railway Contract off my hands, or' pays me a cash consideration for performing the contract I will pay you five thou.>/ liun. (Jcorgc frroK . 1. That in 1871. Plaintiff had an office in New York City, as an Engineer, following his profession ; and that he was then and there consulted respecting the North Shore Railway. 2. That Plaintiff came to Canada soon after that date, and was engaged as Consulting, and acting Chief Engineer upon the North Shore Railway. See testimony of Mr. A. II Yerret. 3. That Plaintiff acted as Chief Engineer of the North Shore Railway Company, from 1871, up to May 1st 1875; when he resigned as such, remainins: as Consulting En- gineer of the Company. 4. That after Plaintiff's resignation as Chief Engineer, he changed the Sign on his office door, and substituted thereto the following : " Greneral Consulting Engineer. " 6. That witness often met the Defendant at his office, (to wit the N. S. R. Office) and had conversation with Defendant ; and always understood from the conversation, that the Defendant was on good terms with the Plaintiff. 14 LKOAL PROOEEDlNOi*. And that Plaintiff' was assisting Dt^fendant to prepare figures and estimates for the Contract in question. Also that witness saw the Defendant coming down the stairs which led to Plaintiffs office. Also that Plaintiffs office was on the flat above witness' office. Set' teHlimoHji of Hon. A. R. Aiufern. 6. That, between August 18th. and September 24th, 1875, at the request of the Plaintiff, and as a personal favor, the then Solicitor General of the Province of Que- bec, being also a member of the Provincial Government, let the Plaintiff see the draft of the proposed Contract with the Defendant ; and also that the Plaintiff afterwards returned the same to the Solicitor General, with a written communication, 7. That the Plaintiff also sent to the Solicitor General, a letter accompanying said communication, of which letter the Solicitor General believes Plaintiff's " exhibit Z, " to be a true copy. 8. That the Plaintiffs " exhibit T " at Enquete, (to wit : Remarks of the Consulting Engineer upon the form of Contract), is the communication in question. \\\i See te.stimo'nij of Mr. A. L. Light. 9. That the Government Engineer (Mr. Light) was not present in Quebec, during the negotiations between the Government and Defendant, until after the 29 parly of the first jmrt coven- ants an I agrt't's iilso to buiM iron truss brid^'t's of thi' lust rpialily, and most II I'prov I'll jijan^, for IhtM-rossing (if the Sli' -Aiiir <, Bdliscan, St -Mau- rice, and Ottawa Himts. All other bridges to remain ol wood. " " The parly of tli" first part hereby cnv«>naiits and agrees to make all chang'^s in grades, plans, spncilica- lidfis, and oth'TWiv, in conformity With ihi' (lovi'iiime: t rtipnnjmi'nts. " ' Notwillistandinp anything in any one of th<* Contracts herein hefort.' re- fiTi'd to. the said (^tntractor shall be bound to furnish, at his own proper cost and charg- s, aiiy and all grounds n"ces8Jiry ami rf^quin-d in the ofiinion of ihi' Govt'rnmpiit Enginet-r and ( om- inissioners, for the servicu of the said Haiiwuy." " And it Is fully iinderstood and agri'ed by aii>l beUveen both parties hcrelo, that ihe prdlijps, plans, work- ing drawings, ai 1 detailed sjiecitlca- tions of the dillerenl works, structures, huililiiigs and equipments, shall be made by the said Contractor, and fully a|iproved by the Government Engin- eer, before work is bngun upon them. And that all work and materials shall be subject to his inspection and ap- proval before being accepted and paid for by the Government. " " That the whole line of the Main Road and Pil^s Branch, with all the buildings, rolling stock, snow fences, Ac, steamboat, Ac, as referred to in the above recited Contracts and herein, shall be fully com])leled and delivered in first class order, so as tn be accepted by the Government, on or before the 1st day of December, 1877. " NoTK — The consideration named in Ihe Contract is $4,732,387 50. which includes Main Line. Piles Branch, and $50,1)00 for debts of Company. " That as to the manner of settling for work already done, on the said line, the amount thereof shall be as- certained by the Government Engin- eer, its value shall be patd by the 4f mmmmmmmmmm 18 LEGAL PBOCEEDINaS. ill aggregate the sum of $i ,?66,000 (for the Main Line), upon which Schedule an estimate or the woric already done, materials procured, and expenditures incurred shall be based. — And pay- ment shall be made therefor in cash, upon the certilicate of the Government Engineer, after deducting the amount received by the Contractor on account thereof from the Hail way Company, together with — per cent, which shall be retained as security for the full and faithful performance of the Con- tract. " " 11. Monthly payments, based upon the same schedule, to be made upon future progress estimates, as certified by the Government Engineer, on or before the 10th of each month, from which the same percentage shall be deducted, until the total amount of said percentage shall reach the sum off " 12. If the location of any portion of the line shall be changed — or if the length of the road required to be cons- tructed shall be either greater or less than the distance of 158 miles now contemplated and provided for, the increased or diminished cost resulting from such oh-tnges, as compared with the cost of the present line, wi,( be computed at the same schedule lates Above provided for; and the total ;on- .sideration will be adjusted accord. ng- ly, by either increasing or diminishing the amount, as the case may be. " Schedule of prices hereunto annexed marked "B," bearing date 1st Septem- ber ; and the gross sum thus ascertain- ed, after deducting drawback h'reiu- after mentioned, and the amounts already paid, the balance shall be paid to the said party of the first part. " '■ And ns to the manner of settling for the work to be done hereafter by the caiitractor, it shall be done as follows : Monthly estimates of the (juanities thereof, and of the materials which are bom fide in poss'-ssion of the contractor on the said Railway, shall be made by the Government Engineer und-^r the said schedule bj him prepared marked " B," and hereto annexed, and the amount thereof paid (m or before the 15th day of the suc- ceeding month, less such deductions as are stipulated for under this con- tract, as a draw-back for the due and ultimate fultilment of the said work."' " That ten per cent of each monthly progress estimate shall be retained by the Government as security for the due fultilment of contract by the said contractor ; and when the amount so kept back shall amount to, at least $100,000, live per cent on each month- ly estimate thereafter may be retained till the final comp'etion of th ^ contract in all its parts, and the acceptanoe thereof by the Government. " " It is further agreed and under- stood that in case any alterations are made in the location of the line or road, or in the construction jf such part thereof, which will increase the cost of (to) the !>aid contractor either in grading, bridging, or length of line, Ac , Ac. the said ctmlractor sIitII be paid such additional cost /no r/i/a with the scht^dnle then in force, and at prices mentioned (heiein : and m case of any decrease in the cost of cons- truction consequent on any such change of line, a corresponding deduc* tion shall be made by the said con- tractor, as per schedule rates." MEMOBANDITM. i§ " 13. ir, upon Iho pTfcclion of the |)lans. nnrl Ihe coni|)Ula!ion 1 1' tim tinal ({uantities. it shall be founH, during tli« progress of the work, ih tt ther« are maifrial ief»cls or omipsions, in the Schedule herein provided for, said Sch»'duie may be revised and perfect- ed, — but in no event shall the total amount thereof be greater or less than the sum of $4.?66,000. for the full and tinal completion of the Main Line, as now located, and herein contemphitt'd to be done. " " 15. If the Contractor refuses or neglects to meet, within a reasonable time, any of the obligations or pay- ments which he has assumed under this .igreement. Or if he delays, tor an unreasonable length of time, the pay- ment for labor performed, or material^ purchased for, or in connection witii the work, the Government to hav; the power to make such payments, nnd to deduct the amount from the Contract- or's Estimates. " " 16. If the Contractor fails to pro- cecute the work in a proper manner, or at a rate or progress that will en- sure its completion within the time 8p)ecified, the Governm»'nt to have th'^ power to cancel the Conlraci, and to enter into other arrangements for its completion " " U is further understood and agreed that the Government MtHfiaeer may change the Schedule cUm^T prices, if found necessary, to aecure the full completion of the Hoad : or in case the Schedul» already made bear too hard upon the Contractor; subjeci however to the approval and ratiQca- lion of the Lieutenant-Governor in Council : but in no case shall the cost of the Road e.xceed the gross price hereinafter mentioned. " " It is further agreed and under- stooH, \hzl if the Contractor refuses or nesfiects to meet within a reasonable time, any of the obligations or pay- ments which he has assumed under these presents ; or if he delays for an unreasonable length of time, the pay- ment for labor pei formed or materials [•urcliiieed for in connection with the Road, then and in any of said cases, the Government shall have the power to make such payments, and to deduct the amount thereof from the said Con- tractor's Estimates. " " Or that, if the contractor fails to prosecute the said work in a proper manner, or at a rate of progress that will ensure its completion within the time specified, that then, and in any of said cases, the Government shall have power to cancel the whole con- tract, and to enter into other arrange- ments for its completion." under- ns are line or such ise the either ofline, hnll be (a with ind at m case cons- such Ideduc* Id con- It will be seen from the above, that all the Points as suggested by the Pla'titifF, are directly covered by the Contract, except the " 2d," which is provided for in the " 12th" ; and also the " 14th," which refers to a sub-schedule, and is really provided for in the " 10th " and " 11th." The language and terms used, are also generally identical, except wher»> amplifications are introduced for the pur- pose of adapting the idea?? l,o the ordinary and more for jial terms of the contvacl ■■■**J- f ■^ TESTIMONY FOR DEFENCE. See testimony of Mr Charles Odell. 1. That witness is in the employ of the Defendant since the summer of 1874, as his Engineer in Chief, in connec- tion with the North Shore Eailway ; and had a know- ledge of the last contract entered into with the Provincial Government ; and was engaged in the preparation of the details of that contract before it w^as drawn out and signed ; and the witness' office, and the professional skill which it contained, w^ere quite sufficient for the purpose of getting up all the estimates and details with reference to that contract. 2. That subsequently to the 1st of May 1875, the Plaintiff was the Consulting Engineer of the North Shore Railway Company ; but witness had no communication with the Plaintifi' as such Consulting Engineer. 3. That witness is certainly of the opinion that the Defendant could obtain from witness, as Engineer, all the information he might re(|uire in relation to his con- tract, without the services of tl.e Plaintiff. 4. That upon being shown Plaintiffs Exhibit " A A " at Enquete (to wit, " Points to be considered in adjusting the TESTIMONY FOR DEFENCE. 21 existing contract to a cash basis.''] Witness believes that he saw a copy of the same in the office of the Defendant. 5. That witness' attention has been drawn to clause twelve (of said Exhibit) ; and it seems to him to be a clause which works both ways, and does not protect one party of the contract more than it does the other ; and as to the rest of the contract, it is rather binding- on ihe Contractor, and the Government has the best of it. itiff pray the I the all fcon- V at the Cross- Examined by Plaintiff. 6. That witness saw the copy of that Document this morning in the Defendant's office ; and witness thinks it was not in the hand-writing as that of Plaintiffs Exhibit " A. A." It was the Defendant himself who showed wit- ness that copy, which witness has examined, and believes to be a true copy of that Exhibit, which he has also exam- ined. 7. That the nature of the information given by wit- ness to Defendant, and which were subsequently embo- died in the contract, or used as a basis, is as follows : as to the quantity of Earth and Rock work, and the general clearing, grubbing, foundations, massonry of different classes, track-laying and ballasting, and general equip- ments of the Road. 8. That in obtaining the above informations, the witness took as a basis, quantities and items from the original sche- dules which were furnished by the Chief Engineer of the Company, under the old contract ; and to this, witness added and estimated the different quantities of the different classes of work required to bring it up to the standard as suggested, or called for by the Government Engineer. r .r 2^ LEOAL PROCEEDINGS. 9. That upon referring to clause five, in the said Exhibit " A, A," witness is of opinion that if said clause being em- bodi(?fl in the contract, and clause twelve being left out, the Contractor would not be entitled to an advance, supposing the work increased, neither would anything be deducted supposing it was diminished. 10. That witness is not aware at present of the Con- tractor having as yet received any advance. There has been a change in location which may probably increase the work, to what extent wimess cannot say, Re-E.i(im'incd Ly Defendant. 11. That, under dame twelve, if the works are increased, the Contractor is entitled to be paid therefor ; and if the works are diminished, a proportionate reduction, as the witness has already stated. See testimony of J//v John T. Prince. 12, That witness is in the service of the Defendant as Cashier and Accountant, since January 1874, and is aware that Defendant was and is the Contractor for the building of the North Shore Railway ; also that the Plaintiff was the acting Chief Enjjineer for the Company, during the whole time of witness' residence here, up to the beginning of the year 1875, at a salary of ten thousand dollars per annum, which was paid by the Contractor, through the witness, as his Cashier, After the Plaintiff ceased to be the Chief Engineer of the Comp any, he continued to be the Consulting Engineer, at a salary of five thousand dol- lars, also paid by the Contractor. TESTIMONY FOB DEFENCE. 23 13. That witness is aware that, during this period, the Defendant had a Chief Engineer, that is to saj- Mr. Charles Odell, the witness examined in this case. Cross-Exa milted htj Phi'mdif, 14. Witness cannot say by whom was paid the salary of the Plaintiff, of five thousand dollars, as Consultinor Eniri- neer ; but witness knows the money came from Mr. McGreevy, but the Plaintiff was paid at the Company's office; witness knows that, because it was afterwards charged to us by the Company. See fesfimo)f?/ of Mr. Thonnf*i J. lias]:. 15. That witness has been following his profession as a Civil Engineer since the year 18o4; and has been engaged continually during all that time, in that capacity, in the construction of Railways, in Europe. Africa, the United States, and in this Dominion. 16. That the duties of a (.'ivil Enaineer in these matters are : first the location of the line, fixing the proper grades for the Road-bed, proper drainage, to see that the road is properly constructed, both in regard to the earth-work or rock-work, masonry and superstrucmr-' for bridges ; as also the building of the Depots, shops, &c. : and of coitrse in regard to rolling-stock ; of courso his duty is also to make out the proper specificatio:l^. and prepare the neces- sary estimates of work done and material delivered for the construction of the Road. 17. That the witness has particularly examined the Plaintiff's Exhibits ' A. A. ' " B. B," and " T," at Enquete. 24 LEGAL PROCEEDINGS. The first of these Exhibits contains the Rules for the con. struction of a first class Railway, gonorally used on the construction of most Roads. " B. B." is a schedule of prices; and "T" seems to contain son.e amendments to the first paper, and some other matters that witness is not particularly acquainted M'ith. 18. That it appears to witness, that some of the clauses of these documents are pretty strong in favor of the Government, and against the Contractor. "Witness espe- cially refers to dame seven in Exhibit " T " as a most arbi- trary rule not known to him as having been used on any Railroad with which he has been connected. 19. That the work and materials, and contents of the said Documents or Exhibits, three in number, are within the ordinary duty of a Railway Engineer. Cross- Examined hy Plaintiff. 20. That, since three weeks after witness arrived in Quebec, about four months ago, he has been in the em- ploy of the Defendant as Chief Draughtsman ; and that yesterday the Defendant shewed witness the Exhibits spok«n of in his Examination in Chief; and told him to read them through, and make up his mind as to the con- tents of the said papers, for the purpose of giving evidence, witness presumes in this case. 21. That witness has worked, both as Engineer of a Railw^ay Company, and as Engineer of a Contractor or Contractors. "When witne.-s worked as Engineer under a Contractor, the Contractor had not the control of the En- gineers and Engineers Departmeit of the Road, except in one instance, when he worked for Messrs Peto, Bras TESTIMONY FOR DEFENCE. 25 sey and Betts, who had full control In 'he other in- stances it was the Railway Companies that ha J .he oonlro. of the Engineers, and Engineering Deptirtment ; as the Contractors had work and were paid by the yard for masonry, earth or rock-work, &c., &c., which is entirely different from the system used on the North Shore Kail- way, which Road is contracted for a bulk sum. 22. That witness knows nothing about the contract which existed between the Defendant and the old North Shore Railway Company; nor does he know any thing about the existing contract between the Government and the Defendant. All that witness knows is what is con- tained in the Exhibits " A. A." " B. B " and " T," part of which he presumes is embodied in the present contract. 23. That when the witness was acting as Consulting Engineer on a Railway, had the Contractor referred to witness for papers such as Exhibits " A. A." " B. B." and " T," the witness would have been bound to furnish papers of that kind, demanded by the Company ; and at the request of the Company only. ff i PLAINTIFF'S EVIDENXE IN REBUTTAL. See testimony of Mr. J. A. CharUhois, Notary. 1. That the two Contracts filed at Enqnete, Nos. " 23," and " 24," are true copies of the original contracts executed before witness as Notary ; the first, between the North Shore Railway Company and the Chicago Contracting Company ; and the other between the Defendant and the North Shore Railway Company. See testimony of Mr. Philippe ffuot. Notary. 2, That it was the witness who passed the contract between the Defendant and the Provincial Government, on the 24th of September of last year. A duly certified and authentic copy thereof is to be found filed in this cause, in Plaintifi's Exhibit at Enqnete " O." See teftttmony of Mr. A H. Verret, Secretary. 3. That the witness was Secretary Treasurer, of the North Shore Railway Company, during its existence. I- }] plaintiff's evidence in rebuttal. sr? he 4. That tL Plaintiff's Exhibit " No. 22," at Enquete, is a true copy of Resolution passed by said Company, on the 11th of August 1875, (to wit, the Resolution " declaring the inability of the Company to construct the road under the existing arrangements ;" and that " the Company are therefore ready to allow the Government to deal with the question in any way they may in the public interests think proper, making such arrangements with the Con- tractor as may be found necessary") 5. That under the terms of the contract between the Railway Company and the Defendant, the latter was bound to pay all expenses connected with the Engineer- ing Department, as per Schedule ; and the Defendan furnished the Company with the vouchers connected with such payments. They were entered in the Monthly Esti, mates and repaid him by the Company. This sum of course included the salary of the Consulting Engineer, for his regular services as such. 6. That in August and September 1875, the witness is not aware that the Company called on the Plaintiff" for the information contained in PlaitifFs Exhibits " A. A." " B. B." and " T " at Enquete ; nor indeed does witness believe that the Company took any step or action whatever, after the 11th of August of said year, with respect to the con- struction of the said road. Everything was at a stand- still, waiting for the action of the Government. 6. That, after examining said Exhibits " A. A." " B. B." and " T," the witness does not believe that, in the said month of August, it was proper, or necessary, or the duty of the Plaintiff; in his quality of Consulting Engineer of the said Company, to furnish the information therein con' ii ^fl >(i (:. i m 28 LEGAL PBOCEEDINQS. tained, to the Defendant, (the Contractor) unless he were ordered to do so by the Company. It would be necessary if he were ordered to do so. It was not in witness opinion part of his (Plaintift's) duty, as Consulting Engineer of the Company, to furnish such information to the Contractor. Cross- Examined hy Defendant 7. That witness filled no other office than that of Secre- tary Treasurer of the Company ; and it was no part of his duty to direct the operations of any of the other officers of the Company. He performed the general duties of a Secre- tary. Witness has no personal knowledge as to the officer or person to whom the Plaintiff first communicated the papers above referred to ; nor at whose request they were prepared. Re- Examined hy Plaintiff. 8. That witness may state generally, that all work to be performed by the Plaintiff", in connection with the road, was notified to him by witness, as Secretary, by order of the President, or of the Board. See testimony of Mr. A, L. Light, Government Engineer. 9. That the witness has already been examined as a Witness in this cause. 10. That, after examining Plain tiflTs Exhibits at Enquete " A. A." " B. B." and " T," the witn-ss states that, with reference to the information therei)i contained, there would have been no impropriety, on tie part of the Plain- tiff", in furnishing the Defendant, in August 1875, with said information, supposing the Plaintiff" had furnished the BttDie to the Defendant. PLAINTIFFS EVIDENCE IN REBUTTAL. to )ad, of 11. That, as Consulting En.:ineer of the Company, it would not havo becMi ncci'ssury for th«' PlainlifF to have done so (to wit, to havt; lurnished i-aid information to the Defendant) without receiv ng any order to that eflect from the Company. 12. That it was not the duty of thv Plaintiff, in his qual- ity of Consulting Engineer of the Company, and acting as such, to furnish the Contractor to wit, the Defendant), at his request, with the information contained in the said Exhibits. 13. That, upon comparing Clause No. 7 of Plaintiff's Exhibit " T," with Clause No. 2 of the contract between the Defendant, and the Provincial Gov«.*mment, both of which api)ly to the appointment of Engineers and In- spectors, (the said clause No. 2 to be found at page 115 of PlaintiflTs Exhibit " O,") witness states that the conditions contained in the said contract, are more stringent and binding upon the Contractor, than the terms contained in said Exhibit ' T." a See testimovy of Hon. J. G. Rolertson. 14. That, in 1875, the witness was Provincial Treasurer, and a Member of the Government of the Province of Quebec. 15. That, in July and August of that year, witness is aware that negotiations were being carried on between the Government, and the Defendent in this cause, for the passing of a contract for the construction of the North Shore Railway, which the Defendant had previously con- tracted to build with the North Shore Railway Company. 16. That, owing to the proposed relinguishing, by the If 80 LEGAL PROCKEDINOS. said Company, of its charter, it became necessary then to have a new contract entered into for the construction of the Road 17. That it was the witness, who represented the Gov- ernment, in carrying on said negotiations. 18. That witness communicated with the Plaintiff, for the purpose of obtaining a statement of quantities and kinds of materials which enter into the construction of a Railway ; and the Plaintilf furnished witness with the details and inibrmation which witness required. 19. That witness addressed the Plaintiff in the matter, because witness thought Plaintiff had more information concerning it than any one else. 20. That witness found the information thus procured, of very great service, as it enabled witness to arrive at what would be, in witness" opinion, a fair value to offer for the work. 21. That in so far as it was of use to witness, the in- formation received by the Plaintiff certainly facilitated matters, and helped to the execution of the negotiations which ended in the contract. 22. That witness i,^ under the impression that he received a document simUar x^ Plaintiff's Exhibit " A. A.'' at En- quete, pending tb- negotiations, from the Plaintiff; witness certainly received the same suggestions in writing from the Plaintiff. 23. That witness knows that Mr. L'ght, the then Gov- ernment Engineer, was absent from "Quebec, during a portion of the time when negotiations were going on re- specting the Railway ; and when Mr, Light returned to Quebec, the basis of the contract in question was mostly completed. R K V I EW O F T H K CAS E. IN PiSHAI.F OF THR PLAINTIFF. — — <»/l*^^tMV~ - In submitting' the folic wing' Reviem of the Case, it is proposed to consider it with reference to its Equitable^ as well as to its Le}^al aspects. THE EQUITY OF THE CASE. In remarking upon this aspect of the Case, it is proper to consider, first, the relative position of the respective parties, both previous to, and at the date of the special Ag'reement of August 18th 1875, which forms the basis of this suit ; and, second, the position in which the same parties would necessarily be placed, upon the consumma. tion of the contingency which was contemplated, and evidently intended to be provided for by the same Agree- ment. It appears that the Plaintiff, who had for many years oc- cupied a prominent position in his profession, as a Railway Engineer, was applied to by the representatives cf the jf W W HffiiWWW Wg^WWWH ;.igwa:7JisaEE: L-^ I I: S2 REVIEW OF THE CASE. North Shore Railway Company, at his office, in New York, in the year 1871 ; and then and there consulted respecting the North Shore Railway ; and that soon after that date, he came to Canada and was engaged as Consulting, and Acting Chief Engineer upon the said Railway ; both of which positions he held, at a salary of $10,000 per annum, until May 1st 1875, when he resigned the position of Acting Chief Engineer, and retained that of the Consulting Engineer of the Railway Company, at the reduced salary of $5,000 per annum. It also appears, that after the Plaintiff's resignation as Chief Engineer, he changed the Sign upon his office door, to that of " General Consulting Engineer^ " and thus gave special, as well as public notice to all persons who either passed or entered that door, that he was open and prepared to be considted, generally, in relation to any and all matters pertaining to, or connected with his profession. The expediency, as well as the propriety of giving such notice, on the part of the Plaintiff, will become apparent, when it is considered that, up to May 1st 1875, he had been r*^neiving from the North Shore Railway Company, a salary of $10 000 per year, which amount had been mu- tually agreed upon by and between the parties, as repre- senting a fair and just Equivalent, for the devotion of the Plaintiffs entire time and professional services, in the above dual capacity, to the interests of that Company. "Whereas, after May 1st 1876, the salary of the Plaintiff was reduced to $5,000 per year ; which amount was sup- posed to represent an equivalent for the proportion, say one half, of the Plaintiff^s time and professional services* as Consulting Engineer only, which he would be liable, if EQUITY OP THE CASE. 88 so required by the Railway Company, to devote to the service and interests of that Company. And the Plaintiff was therefore at full liberty to seek for, and to enter into other professional engagements, in order to make good the deficit, of $5,000, in his yearly income. It also appears, that the Contract which was in force between the Eailway Company and the Defendant, during the period above referred to, for the Construction and Equipment of the North Shore Railway, {See Plaintiffs Exhibits Nos. 23 and 24.) contained a provision by which the Contractor agreed and undertook to pay " all the expenses connected w^ith Engineering. " And also a fur- ther provision, that these expenses, together with those of the Railway Company, and all other expenses which were legitimately connected with the Construction and Equip- . ment of the Railway, should be re-paid to the Contractor by the Railway Company, upon the Monthly or progress Esti- mates of the Engineer ; which Estimates w^ere to be based upon a Schedule of Values, for the different items of Ex- penditure under the Contract, which schedule would ag- gregate the total consideration named in the contract, for the completion of the Railway. But the said contract contained no provision by which any of the Engineers named <^r referred to therehi, were \ »«< < i* the control of, or sub- ject to appointment or dismissal by the Conti actor. Neither is it a fact that any such power or control was ever exer- cised by the Contractor, under the said Contract. It also appears, from the said contract, that the Con- tractor, in part consideration for the perforjaance thereof, agreed to receive from the s'-lu Railway Company, a large amount, (to wit, sever-^l Million dollars) of the Bonds or I 5l» K I 34 BEVIEW OF THE CASE. debentures of said Company ; upon the sale and proceeds of which, he lelied chiefly for the means to carry on and complete the work. It also appears, from the Resolution adopted by +he Board of Directors on the 11th August 1875, (see Plaintiff's Exhibit " No. 22 ") that, by reason of the neglect or failure of the Contractor to negotiate the Bonds above referred to, and his consequent inability to x>rogress with the construc- tion of the Railway, the Railway Company wa^ obliged to declare its inability " to construct the road under existing arrangements ; " and also to declare its willingness : ■' to allow the Government to deal with the question in any way they may, in the public interests, think proper ; making such arra?igements iviih the Contractor as may he found necessary. " It also appears that, solely in consequence of the above failure on the part of the Contractor, and the subsequent action of the Railway Company in relation thereto, the Provincial Government entered into direct negotiations with the Contractor, with a view of closing an arrange- ment for the construction of the Railway, upon a basis wholly of cash payments therefor, instead of a portion thereof in the Bonds above referred to. (See Testimonj of Hon. J. G. Robertson.) It also appears that, pending the above negotiations, between the Government i.nd the Contractor, " negotia- tions ivere kept in abeyance tvith certain parlies, [see testivryny of Hon. Thos. McGreevy,) who, under a previous arrange- ment between the Plaintiff and the Defendant, " proposed to assume the position then held by the Defendant for the con- struction of the North Shore llailway ;" (see Plain»ifFs Exhi- i EQUITY OF THE CASE. 35 )U ^/ la- 11/ re- [ed m- bit "L," bein^ Mcareevy's Letter of July 22nd 1875,, and to complete the same, nuder the then existing contract with the Railway Company. It was, therefore, under the circumstances above nar- rated, all of which are lully established by the Defendant's admissions, and the eridence in the case, that the Defen- dant had communications with the Plaintiff as General Consulting Engineer, for his aid and assistance in con- ducting his negotiations, and in consummating his contract with the Provincial Government. See Defendant's answers to Faits et Articles.) Viewing the case in the light of these circumstances, it will become quite apparent, that the Plaintiff had every- thing to lose ; and that ihe Defendant had everything lo q-ain, by the proposed arrangement with the Government. The PlaintitF, owing to the lapse of time, and his entire devotion to the interests of this Enterprise, had, to a great extent, severed his professional engagements, and business relations, in the United States ; and he was therefore chiefly dependent upon the salary which he received from the Railway Company, for the support of himself and family ; which salary would be quite sure to be dis- continued, and his services dispensed with, (as in fact they have been) in case the road came under the control of the Government, who had its own Engineer. While on the other hand ; if the road remained under the control of the Eailway Company ; and the parties were brought forward who stood read> to complet<^ the road under the original contract, the Plaintirf s salary as Consulting En- gineer, would not only be secured to him ; but also any additional advantages which might accrue to him under hxs previous agreement with the Defendant. -Iff ""■PP 86 REVIEW OF THE OAfiE. ,- t r The Defendant had advanced largely from his own means ; and, by reason of his failure to negotiate the se- curities of the Company, he had nearly or quite exhausted both his means and credit, in his efforts to carry on the work under the original contract ; and he would there- fore soon be compelled, either to abandon the work en- tirely, and thus lose the money which he had invested in it; or to cIol rrangement with the parties referred, to in his letter ol . d July, by which arrangement these par- ties would, as stated in this letter, assume the position then hell by the Defendant for the construction of the North Shore Railioaij, and re-pay to the Defendant the amount of his previous advances in connection with the Contract. While, on the other hand, if a favorable contract could be negotiated with the Provincial Government, the Defen- dant would not only secure the prompt re-payment of all past expenditures ; but he would also secure the prospect of / r^e future profits in connection with his contract ; together with all the advantages growing out of the sub- stitution, as the second parties thereto, of a responsible Gov- ernment, in lieu of an irresponsible Railway Company. These prospective advantages had already induced the De- fendant to defer the closing of the proposed arrangement with the parties referred to in his letter to the Plaintiff of 22nd July 1875 ; and the same considerations now in- duced him to make it for the interest of the Plaintiff, not only to aid the Defendant, in holding " these parties in abeyance^ " until the result of his negotiations with the Government could be determined ; but also to aid and assist the Defendant in bringiag these negotiations to a speedy and satisfactory conclusion. Or, to use the words EQUITT OF TBS CASE. 8t it )f )t in le id a Is of the Defendant, " in order thai there should be no delays ; knowing that the Plaintiff had the means in his power of keep- ing it back" [See admissions by Defendant, clause 14.) An arrangement was therefore entered into, between the Defendant and the Plaintifl^ by which it was pro- posed, upon the consummation of the contract with the Government, that the PJaintiff shouH be secured the sum of $15,000 ; this beiug the precise amount of three years salary as Consulting Engineer, during the probable period of the construction of the Soad. The following is a copy of the Agreement referred to, and upon which the present action is based : " Quebec, ISth August, 1875, Dear Sir : In consideration for your extra services, Thereby agree, that if I close an arrangement with the Provincial Go- vernment of Quebec, by which the Governmemt either takes the North Shore Railway contract off my hands, or pays me a cash consideration for performing the contract, I will pay you five thousand dollars upon the closing of such an arrangement ; also five thousand dollars additional, within one year from that date; and five thousand dollars additional, ici thin two years from that date ; making in allfiftein thousand dollars. Yours truly, [Signed,] Thos. McGtREEVY. General Seymoub, Consulting Engineer, Sfc, Sfc , Quebec. " It also appears, from the evidence in the case, that' the Plaintiff not only refrained from using " (he means, (ichich the Defendant knew he had,) of keeping the negotiations back,^^ but that he 2X&0 furnished information that was of very great service ; and certainly /aci7i7ate *> , and actually was in the first instance, advanced to the Railway Company by the Contractor ; and afterwards refunded to him, in Monthly estimates, as per Schedule, {^ee Testimony for Defence, clauses 12 4*14. Also P aintifs Evidence in Re- buttal, clause 5. Also Plaintiff's Exhibits '-2^," Sf "24" at Enquete.) It also appears that, at the same date, the Plaintiff oe- 44 REVIEW OF THE CASE, I ( cupied c.n office for business purposes, in the City of Que- bec, upon the entrance door to w hich was affixed the Sign, " General Consulting Engineer." {See at/missions by Defendant, clause 22. A/ so Facts proven by Plaintiff. <" 4.) It appears to have been equally well established from the testimony, and the admissions of the Defendant, th'at at the date of the Agreement, the Defendant was the Con- tractor for the construction of Ike North Shore Rn.'hvaj/, under the said Railway Company ; Also, that, at iho same date, the Defendant was engaged in negotiations with the Pro- vincial Government of Quebec, with a view of obtaining a contract for building the North Shore Railway, on the basis of a cash consideration. [See admissions by Defendant clauses 1 4* 2.) It also appears that, about a week previous t( date of said Agreement ; to wit, on the 11th of August, 1875, the North IShore Railway Company adopted a Resolution, «' declaring the inability of the Company to construct the Road under existing Arrangements ; and that the Company are therefore ready to allow the Grovernment to deal with the question in any way they may in the public interests think proper, making such arrangements with the Contractor as may be found necessary. " Also that, after the passage of said Resolution, the said Railway Company did not take " any step or action whatever with respect to the construction of the said Road ; everything was at a stand-still, waiting for the action of the Government. " {See Plaintiff's evidence in rebuttal, clauses 4 <^ 6. Also Exhibit No. 22.) It also appoars that, previous to the date of said Agree- ment, and during all said negotiations between the Defen* dant and the Provincial Government, the Defendant had LEGAL ASPECT OF THE CASE. 45 (ommunicnfions with the Plaintiff as General Consulting En- gineer, concerning documents which the l'hiintifl'i«tated that the Treasurer of the Province had put into the Plain- tift''s hands, to prepare a contract with the Government, and assist the Treasurer in making a contract. [See ad- missions by Defendant, clause o.) It also appears that the Defendant vas very desirous that the preparation of the Contract, Schedules, and Estimates should be put through as soon as possible, and that there should be no delays ; also, thai during these interviews, (to wit, w^ith the Plaintiff as General Consulting Engineer) the Defendant signed an Agreement with the Plaintiff, upon which this action is based, " in order that that there should be no delays ; knowing that the Plaintiff had the means in his power of keeping it back ; " also that the Defendant " would not have signed snid Agreement, under any other circum- stances.^^ [See admissions by Defendant, clauses 13 & 14.) It also appears, that the said negotiations betw^een the Defendant and the Government, were initiated and carried on, for the reason that, otving to the proposed relinquishing by the Railv)ay Company of its Charier, it became necessary to have a new contract entered into for the construction of the Road. [See Plaintiff's evidence in rebuttal, clause 16.) It also appears that, previous to the date of said Agree- ment, the Defendant was desirous of obtaining respon- sible parties to advance the means in carrying out his ori- ginal Contract with the Eailway Company ; and that the Defendant entered into arrjingements with the Plaintiff to that effect; also, that the Defendant was aw^are that the Plaintiff had procured parties who w^ere willing to assume an interest in said contract ; also, that the Defendant had 46 REVIEW OF THE CASE. I met said parties with the Plaintiff : and had also commu- nicated with said parties, through the Plaintiff, in writing, with a view of closing an arrangement ; also that negotia- tions with said parties were k(pt in abeyance, during the Defendants pending negotiations with the Government. [See admissions by Defendant, clauses 10 Sf 21. Also Plaintiffs Exhibit " L " at Enquete.) Having thus stated, -with some particularity the res- pective positions occupied by each party ; together with the relations which existed between them; and the cir- cumstances w hich surrounded the North Shore Railway, at the date of the Agreement in question ; it remains to consider, whether there was anything in these relations which rendered it unjust and illegal, for the parties to enter into this Agreement ; or that should present any bar to its enforcement. It is well understood, both in and out of the Engineering Profession, that the duties pertaining to the office or posi- tion of a ConsvJting' Enginc^r, are, as the term clearly indicates, and as is equally w^ell understood when the terms Counsel and Consulting are applied to other Pro- fessions, entirely of an advisory, and not of an executive nature; and it is also understood, that the services of a Consulting Engineer are due only to, or in the interest of the perty by whom he is appointed ; and that these per- vices are due, even to this party, only when the Consulting Engineer is regularly and officially called upon for counsel und advice respecting matters which are legitimately con- hected with his profession, and in which the party by -whom he is appointed has a direct interest. It does not appear from the evidence, that the Railway LEGAL ASPECT OP THE CASE. 47 by ray Company ever called upon, or reqnired the Plaintiff to render any soivice, or to take any part in connection "with the negotiations between the Defendnrit rnd Ihe Gov- ernment; or, that either the Defendant or the Govern- ment ever requested the Railwav Company to reqnire the Plaintiff to furnish any information, or to render any ser- vice in connection therewith. On the contrary, it does appear from the evidence, that, " after the 11th August, 1875, the Railway Company took no step or action what- ever with respect to the construction of the Road. " [See Plaintiff's evidence in rebuttal, clavse 6.) Such having been the Professional, and consequently the Legal Status of the Plaintiff, in his official relatio.is with the Railway Company, at the date of ihe Agreement in question ; therefore, ni the absence of any request or instructions from the Railway Company, respecting the pending negotiations between the Defendunt and the Provincial Government ; and with a full knowledge of the fact that the Company had no interest, and was taking no part whatever in these negotiations, it appears quite evident that the Plaintiff was at full liberty, either to remain entirely passive and neutral in respect of these negotiations ; or to take such action in relation to them as would be best calculated to promote his own interests ; particularly so long as such action could by no possibility prove contrary to tho wishes, or derogatory to the interests of the Railway Company, whoso wishes and interests alone, either in this or any ether matter connected with the Railway, he was justly bound to look after and pro- tect, so long as he remained the Consulting Engineer of the Railway Company. 48 BKVIKW OF THE CASE. i !^ It is therefore quite clear, from the premises, that what- ever action the Plaintiff' might conclude to take, in respect of the negotiations in question, must of necessity be en- tirely outside of, and disconnected frOm the duties and services pertaining to his official position as the Consulting Engineer of the Railway Company ; and consequently that such services, if rendered in behalf of eithe ? the parties to the negotiations in question, would ver^ properly be regarded as " Extra Services'' It has been shown in the preceding remarks upon the " Equity of the case" " that the Plaintiff had everything to lose ; and that the Defendant had everything to gain by the proposed arrangement with the Government;" for the reason that, by its consummation, the Plaintiff would be quite sure to be deprived of his salary of $5,000 per year, as the Consulting Engineer of the Company, during the three years that w^ould probably be required to complete the Railway; while, on the other hand, the Defendant would not only be released from the further payment of this salary, and repaid for all his past expenditures under his original contract ; but he would also secure the prospect of large future profits in connection with his proposed contract with the Provincial Government. The Plaintiff" had been the Acting Chief Engineer of the Railway, during several years previous to May 1st 1875; and had, during that time, acquired a thorough knowledge of the details and cost of the different w^orks ; which know- ledge, although it had been acquired previously to the time of the negotiations in qU'^stion, and not in the Plain, tiff's Capacity of Consulting En^'^ineer^ was likely to prove of very great service to the Defendant, in facilitating his negotiations with the Government. LEGAL ASPECT OF THE CASE. 49 n. re lis The member of the Government who was conducting the negotiations with the Defendant, had applied to the Plaintiff for a statement of quantities and kinds of materials which enter into the construction of a Eailwav, •' because, (to use his own words) he iJwtighl the Plaintiff had more information concerning the matter than any one etsef not, it will be observed, because the Plaint: I was. at the time, the Consulting' Engineer of the Eailway Company ; but evi- dently because it v^'as within the knowledge of the mem- ber of the Government, that the Plaintiff had acquired the information sought for, during his long experience as the Chief Engineer of the Road. The Defendant was told bv the Plaintiff, that the Treas- urer of the Province had called on him (the Plaintiff to assist him (the Treasurer) in preparing the draft of Con- tract, Schedules and Estimates ; and the Defendant, being very desirous that the thing should be put through as soon as possible, and that there should be no delay, signed an Agreement with the Plaintiff, upon which this action is based, in order that there should be no delays ; knowing that the Plaintiff had thf- means in his power of keeping it back, {see admissions by Dejendant, clauses 12, 13 afid 14) ; "Which Agreement, as will be seen, provides only for an amount equal to a continuation of the Plain- tiff's salary of $6,000 per year, for a term of three years ; and thus secures, or was evidently intended to secure the Plaintiff against this loss of income, which otherwise appeared to be inevitable, in the event of a successful ter- mination of the pending negotiations betw^een the Defen- dant and the Government. If injustice was done by the Plaintiff to the Railway 50 REVIEW OF THE CASE. 4 Company, by reason of the above Agreement, it would appear that the Company itself would hare been the proper party to call him to account therefor, rather than the party in whose favor or interest the Plaintiff is alleged to have committed such act of injustice ; particularly when it is considered that the official relations which the Plaintiff sustained towards the Railway Company, were well understood by the Defendant, when he signed the Agreement; notwithstanding which, he did not scruple to avail himself of the benefits of the Plaintiff's Extra Services, in connection with his negotiations, and sub- sequent Contract with the Government. Referring to the allegations contained in the Defendant's Answer, to the effect, that the services in question were such as pertained to the Plaintifl''s Oliicial position as the salaried ofiicer of the Railway Company ; and also, that by continuing to hold said office, the Plaintifl was disqual- ified from rendering the Defendant any services in connec- tion with said Railway, it will be seen from the testimony, given by experienced members of the Engineering pro- fession, that the Defendant had no claim upon the Plaintiff, for services of this nature, in his capacity of the Con- sulting Engineer of the Railway Company ; and also, that there was no impiopriety in his rendering such irvices to the Defendant, even in his official capacity, in case he voluntarily inclined to do so. {See testimony for Defence clause 23; also Plaintiff's evidence in rebuttal, clauses 10, 11 and 12.) From which it will appear, that, taking the Defendant upon his own assumec ground, there could have been nothing unjust or illegal in the transaction. When it is considered that the Railway Company, whoso LEGAL ASPECT OF THE CASE. 51 d " salaried officer " and nominal servant, the Plaintiff was, at the date of the Agreement in question, had become practi- cally effete ; and that it was taking no part or interest whatever, either " in the construction of said Eoad" or in the pending negotiations between the Defendant and the Go- vernment ; and when it is further considered, that the ser- vices referred to in said Agreement, were sought for and required by the Defendant, to use his own words : •' In order that there should be no delays ; knowing that the Plain- tiff had the means in his power of keeping il back"* ; also that the Agreement would not have been signed by the Defen- dant " under any other circumstances " ; it will become quite clear, that the term •' Extra services," as used in said Agreement, was understood by the parties, as referring- to certain services of an extraordinary ual re, that were quite indepeudant, distinct, and separate from the Plaintiff's or. dinary services as the Consulting Engineer of the Railway Company. Or, in other words, that the Plaintiff was ex- pected to lose no time in preparing and furnishing the offi^cer of the Grovernmeiit, with whom the Defendant was then engaged in carrying on his negotiations, with such extra information, aid, and assistance, as the said officer re. quired for the purpose of carrying on these negotiations in- telligently ; and also " in preparing the draft of Contract^ Schedules and Estimates " ; all of which was to. be done " in order that there should be no delays.' Therefore, in view of all the facts and considerations connected with the case, it is resi>ectfully submitted, tha the services referred to in said Agreement, were not con- templated or required to be rendered, by the Plaintiff, for or in behalf of the Railway Company. And also, that there 52 BEVIEW OF THE CASE. i was nothing contemplated by, or connected therewith, that should prevent the legal consummation, by the parties thereto, of the Agreement dated August 18th 1875. 2d. As to the Extra Services rendered. Inasmuch as the nature and extent of the services contemplated to be rendered by the Plaintiff, under and by virtue of the Agreement in question, have been fully discussed in the preceding article, it will be unnecessary to renew the discussion here, further than to state generally, that, according to the allegations of the Plaintiflf, and the admissions of the Defendant, these services ivere to consist on the part of the Plaintiff, in the furnishing of information, and otherwise rendering aid and assistance to the Defendant, and to the Provincial Government, that would be the means of ficilitating the negotiations then pending between the partifs; and also of hastening the final consummation of a contract between them, for the construction of the North Shore Railway. With reference to the performance of the above ser- vices on the part of the Plaintiff, it appears from the testimony, that, immediately after the signing of the said Agreement, the Defendant explained to the Plaintiff, that there was a difference of a large amount, say four hundred and fifty thousand dollars, (the Defendant cannot state the exact amount) between the Defeidant and the Government, respecting the consideration for he Main Line alone ; also that this difference was harmonized, by the terms of the contract being agreed upon, and ready, about the last days of August; (to wit, within a few. days after the signing of the Defendant's Agreement with the Plaintiff, of August LEGAL ASPECT OF THE CASE. 53 10 s )f st 18, 1875) ; also, that the PlaintitF prepared the draft of a contract to be executed by the parties (See admissions by Defendant, clauses 15, 17 and 18.i It also appears that the Plaintiff prepared and placed at the disposal of the Government, and the Defendant, certain important documents ; to wit, " Points to be con- sidered in adjustinii: the existing contract to a cash basis ;" " Remarks upon the form of contract, ^^c." " A statement of quantities and materials ;" together with " Schedules of rela- tive cash values, 4*c." {See Fads proven b'j Plaintiff, clauses Q and 11 ; also Plaintiff^ s Evidence in rebuttal, clauses 18 and 22 ; also testimony for Defence, clauses 4 and 6. Also Plain- tiff's Exhibits at Enquete " A. A:' " B. Br and " T.") It also appears, that the above information and docu- ments were found to be " of very great service"'; and that they " certainly facilitated matters, and helped to the execution of the negotiations which ended in the contract ^ i^See Plain- tiff's Evidence in rebuttal, clauses 20 and 21.) It also appears, that much of the language, and many of the entire paragraphs, which were embodied in the documents so furnished by the Plaintiff, were subse- quently embodied in the contract between the Defendant and the Government ; also that many of these clauses and provisions, were exceedingly favorable to the Defendant. [See Facts proven by Plaintiff, clauses 11 and 12 ; also " Memorandum, showing the identity or similarity of certain paragraphs, iV^-") It also appears, by reference to " clause 7," of Plaintiff's Exhibit " T,' that the Plaintiff suggested a provision to be embodied in said contract, which would have been much less stringent and binding upon the Contractor, than the 54 BEVIEW OF THE CASE. I provision, with reference to the same matter, which was subsequently embodied in the contract, in clause 2, at page 115, of Plaintiffs Exhibit " O." (See Plainlifs Evidence in rebuttal, clause 13.) Also, that two important provisions, w^hich were con- tained in the original draft of said contract, and which would have been very detrimental to the Defendant's interests, were recommended to be stricken out, by the Plaintiff; and were so stricken oat, and not embodied in the contract, as iinally executed. {See Plainiiff^s Exhibit " 3'." clauses 4 and 12, and compare with Existing Contract.) It also appears that said contract was ready, about the last days of August, 1875 ; but that owing solely to the delay of the Government, it was not signed until the fol- lowing 24th of September. See Admissions by Defendant, clause 17.) It also appears, that previous to the signing of the said contract by the Defendant, lo wit on the 23rd of September, 1875) ihe Plaintiff, by letter, called the partic- ular attention of the Defendant to the absence of a most important provision in said contract ; which omission was duly provided for " at the last moment " before the execution of the contract, when a " cash consideration was substituted by the Government, in lieu of the #125,000 subscribed by the Municipalities ;"' referred to in the said letter. (See Admissions by Defenlant, clauses 9 and .'9 ; also Plaintiff^ s Exhibit at Enquete '' il.") It also appears that, several months subsequent to the negotiations, and the execution of ru which it appears that the net proceeds of the notes i^mouni to $2,150. " The account between us, as per the Agreements above referred to, exclusive of interest, will therefore now stand as follows : Per Agreement dated Jane 21, 1875. •• Amount of 6o«ws due Sept. 24, 1875 $5,000 Balance of salary due monthly from May 1st 1875 to May 1st, 1876 $5,000 Total $10,000 Per Agreement dated August 18, 1875. Amount of first instalment, due Dec. 24, 1875 $5,000 Total amount.. Deduct amount paid Mr. Colston, Apr 1876 Deduct proceeds of two notes received May 4,1876 $2,160 $2,350 *iu,000 $?oo 1 Balance due upon both Agreements. $12,650 •' You would therefore oblige me by informing me, at LEOAL ASPECT OF THE CASE. 59 )0 50 at your earliest convonience, as to which of these respective Ag-reements, you d« sire, or intended to have me credit the payments which you have already made on their account; BO that the amount due under each Agreement may be distinctly under-stood." Inasmuch as the Defendant had not furnished the Plaintiff' with the information asked for in the above letter, previous to the commencement of the i>resent action ; and as he has produced no evidence upon the subject, it is therefore respectfully submitted, that it was evidently the Defendant's intention, that the payments therein referred to, should be credited to the portion of the account therein rendered, which had been longest due to the PlainiifF, to ■wit, under the Agreement therein referred to, of June 21, 1875. "With reference to tiie amount of " Salarj/ as Consnllii'g Emiineer, " which the Plaintiff is alleced to have received, between the 1st November and 1st May last, " of the money of the Defendant, paid to him by the Government of this Province " etc., it is sufficient to state ; first, that the same provision is contained in the Government con- tract, wath reference to the payment, by the Contractor, of ^^ AILEnmneering Expenses.'" (except those of the Govern- ment Engineer^ ; and his subsequent re-imbursal through the monthly estimates, as was contained in the original con- tract. {See clause 11, page 1 IT, of Plaintiff's Exhibit " O.") ; and, second, that any salary so received by the Plaintiff, must have been acknow^^edged, by the Railway Commis- sioners, as being justly due the Plaintifi; from the North Shore Railway Company, on account of his regular services as' the Consulting Engineer of said Company, during the 11 i 60 REVIEW OP THE CASE. ■'' :^ then current year of his engagement as r.ach ; and that the amount was therefore payable by the Contractor (the De- fendant) under his contract with the Government : (See Plaintiff's Exhibit " Or— clause 21, pa^e 119.) Attention is also called, in this connection, to the alle- gation contained in the latter portion of the " Defendant's Amwer,'' to the eiFect, that the Plaintiff was not entitled to, and did not earn his salary as Consulting Engineer, be- tween Isfc Nov., 1875 and 1st May, 1876, "inasmuch as the said Plaintiff did not render the said Defendant any services, and was not in his employ during the said time " ; from which it appears that this portion of the Defendant's Answer is in direct contradiction to the theory advanced by him in a previous allegation contained in the same Answer : where the Defendant alleges, in substance, that the Plaintiff was disqualified from rendering the Defendant any services, by reason of his being the salaried o/ficer of the Railway Company. It becomes quite evident, therefore, that this alleged payment to the Plaintifl', on account of salary for his re- gular services as the Consulting Engineer of the Railway Company, of which however there is no proof, has no re- ference to, or connection whatever with, the " Extra Ser- vices " rendered, or to be rendered to the Defendant, under and by \irtue of the Agreement of August 18th, 1875. In view of all the tacla in the case, it is therefore respect- fully submitted, that the Defendant has no just and le^al off-F.et to the demand of the Plaintiff, as contained in his, the Plaintiff's Declaration in this case. % CONCLUSION. <' It appears, from the foregoing review of the case, that the following facts in relation thereto, have been clearly established : 1st. That the Equity of the case is clearly in fsivor of the Plaintiff. 2nd. That, by the language and terms of the Agreement of August 18th 1875, the Legal aspect of the case is prima facie in favor of the Plaintiff. 3rd. That the legal status of the Plaintiff, in his relations to and with the Railway Company, and the Defendant, were such as to justify him fully in rendering the " Extra services " referred to in said Agreement, and in receiving a specific consideration therefor. 4th. That these Extra Services were not only promptly, and in good faith, performed by the Plaintiff, in behalf of the Defendant ; but he also performed other services in connection therewith, which enured greatly to tlie profit and advantage of the Defendant. 5th. That the payments alleged to have been made by the Defendant to the Plaintiff, do not appear to have been intended by the Defendant, nor acknowledged by the Plaintiff, as applying to the consideration specified in the Agreement of August 18th 1875. And therefore these payments cannot justly be regarded as a legal set-off in this action. 6th. That every allegation contained in the Plaintiff's Declaration, has been/w/Zy corroborated by the admissions of the Defendant, and the testimony in the case ; while not a 62 REVIEW OF THE CASE. ■P. I' m single allegation contained in the Defendant's Answer, is sustained by the evidence, except the one which charges the Plaintiff with having been the ' Salaried Officer of the North Shore Railway Company," which fact is freely admitted by the Plaintiff ; and must have been well known to the Defendant, both at the time of signing the Agreement in question, and during all the time when he was receiving the full benefits of the arrangement therein provided for. 7th. That the Defendant, having alleged, that the Plaintiff acted adversely to, and opposed the Defendant's interests, wishes, and desires in the matter ; and also that the Plaintiff obtained the Defendant's money and votes by means of deceit, pretence, and concealment ; and having offered no proof, and produced no evidence in support of these allega- tions against the honesty and good name of the Plaintiff, has not only virtually admitted the untruthful and ficti- tious nature of his entire defence in this case ; but he has also shown a degree of malice towards the Plantiff ; as well as a disregard for his own legal obligations, which deserve the censure of the Court. It is therefore respectfully submitted, in conclusion,, that in view of all the facts and considerations connected with the case, the Plaintiff is both equitably and legally entitled to a judgment against the Defendant, for the sum of five thousand dollars, with interest and costs. TASCHEREAU and FORTIER, Attorneys for Plaintiff. R. ALLEYN, Counsel. Quebec, December, *7th 1876. k JUDGMENT OF THE COURT COi'Y OF JUDGMENT RENDERED BY THE HONORABLE ANDREW STUART. JUSTIC1-: OF THE SUPERIOR COURT, ON JTH KE15RUARY 1S77, Considering that the Defendant hath failed to prove the allegations of his plea of Perpetual Exception, in this cause fyled, the same is hence dismissed. Considering" that the Plaintiff hath proved the material allegations of his Declaration ; and more particularly, that the Defendant, if he closed an Agreement with the Pro- vincial Grovernment of Quebec, by which the Government either took the North Shore Railway Contract off his hands ; or paid him a cash consideration for performing the Contract ; in consideration of the Plaintiffs Extra Services, agreed to pay the Plaintiff five thousand dollars upon the closing of such an arrangement ; also five thousand dollars additional, within one year from that date ; and five thousand dollars additional, within two years from that date ; making in all fifteen thousand dollars : Considering that the Defendant has closed an arrange- ment with the said Grovernment. by which it pays the Defendant a cash consideration for performing the North Shore Railway Contract : The Court doth adjudge and condemn the Defendant, for the considerations aforesaid, to pay to the Plaintiff the sum of Five thousand dollars, with interest and costs.