Document qm14nEggepOLp55MZpMv8z5Qn

C03ST GJ C0KMC2 P7..ZAV, OF AI Li' FSBHSTLVAK1A Civil Case Ho. 20S'? * J^ausry Term, 1957 PLAINTIFF'S ( EXHIBIT I - JMMC-218 The Supervisors of th Towt.y cf fSc'-a. now to tha utie Jobas-llaavilie Soles Corporat;..xa, Pi a.ttvi. if ?: Johns-Meaville Saley Corporation vs , Herbert Ifaff, also *;ac*n as H&rb. H* individually and doing business ae Herb Seff Contracting ar.d Fcerlcss Casualty Company* a corporation. Defendants. Pittsburgh, Pennsylvania* November b, 19 3 7- HIGIILIG11T3 OF TRAKSC%I?T 07 OFFICIAL M0T3S OF TF.GTIHOHY Summary of Claims Barb Hoff purchased materials from Johas-Maavllle Corporation in the amount of $33*702.34 to be used by tha Township of Hoon In chair Veter Distribution System according Co Contract Ho. A4. The sum cf 330*433.31 was .paid by Hoff to J-M for said materials* leaving a balance of $3*264.03, which remained unpaid in spite of frequent demands made by J-M on both the individual and corporate defendants* Heff received all materials purchased from JM, but served then with notices of defective octarials received as required under the terms of purchase orders. J-M then took tha matter of unsettled balance to court and Heff filed a counter dale on bis refusal of payment. Because of defective A-C transits pipe furnished hj J-M to Deff* ten leaks occurred* which according to Baff's taetlnony caused serious delays since he had to stop his currant work and go back to fix the leaks. Heff stated that the cost to hlnself of discovering the leak and repairing it was $833* per leek. CIVIL CASK KQ. 2099 Page two Furthermore, Heff's attorney. Hr* Jonas, stated that the purpose of testimony euhnitted was to prove loss of profits and show that Heff vas entitled to a fair profit on the particular Job if it coaid bo shown that the damages resulted from faulty pipe furnished by Johns-Kanville, Testimony Quotations Ve present below verbatim quotations of testimony sub mitted at this ease. These quotations pertain to statements nade by Mr* Hoff, unless otherwiso indicated, and have been grouped under n particular subject as each subtitle shows. Handling of A,,c Transits Pipe - "They call it 'paper pipe* because it is very frail. Ton have to watch it. It is just like eggs. You have to watch how you handle it or whore you lay it, nothing touches it or drops on it." (pngs 32) Pipe Paed at Hoad Crossings - "This pipe we laid had to cross the read several times and the engineers know that this paper pipe, Johno-Uanville transits pipe, will not withstand road bearing pressures, so they wanted east iron in there. And everywhere we had a road bearing weight to ge into east iron end after the bear ing go beck with transits," (page 35) Installation of A-C Transits Pipe - "Ve need the utmost caution on tha pipe because I knew what the pipe was like. 1 knew it had to he handled carefully end it took a lot of patience and time to Install it right. And I had good men to do it, I was there as much of the tine as possible and I watched them lay. it and they took pride In their work. In fact, when we had a leak they just couldn't figure it out. It was just a pussier to ns. We just CIVIL CASK SO. 2099 tag* three racked oar brains. I would go botaa at night cud I couldn't sleep because I couldn't figure out why, what was happening." (page 73) Im aaverol places throughout the testlaeay it ia aotad that the instruction* given by Jebns.Hfioville as to tba ins tallac tion of A-C transit* pip* were carefully followed by Herb Raff and bis at, Tba actual work of laying the pipo was inspected by qualifled "Instructors" from Johos-Haaville who "get down and actually helped" la tbs job* Seff's superintendent on the Moon Township Job, Sail Kllaer, stated the following la regard to the installation procedures observed: "If the pipe was laid, that is 13'6" section of pipe, was laid we will say with a section or bard substance sticking up in the ceaeer of that pipe or anywhere near the eantar of that pipe, it would - the weight of your dirt over the top of it -- that is your backfill over the top of it would create a teasion end break down end it causes what is callsd a been break." (pagaa 140-141) "In other words, it is a brack that is caaaed by eltbsr rock, dirt, or sens object in the center of the pipe being foreed up." (page 145) Defects and laparfactlont of A-C Pipe - Describing a piaea af A-C pipe and referrlag to its lnsids dlanstar, Seff stated, "It le a little lese than $ inches. It would ron about 7 and thraa quarters." ... "la the trade that is called an S inch pipa." (page 40) Idantlfylag another pipe exhibit:' "That ia a piaea af inch traaslte pipe that blew opart on tba Job." (page 40) "It blew itself apart whan tba watar praasuca was put through it. In other words, tba pip* Juet separated sad that ia haw it broka right CIVIL CA8I 10. 2099 Pgt four thtrtt It is transits pips (that) cans fro* Johas-Maavllle. It vu it approximately two or three days and it blev. It blow op the day it vu tested, loo, I can go through oad show you laperfactions ia this (pipe) if you went as to." (page 41) Farther aloag la the trial, Mr. Beff demonstrated the im perfections found oa the machined ends of the i.C pipe exhibits aad corresponding collars. Beff inspected the pipe aad collars using a pair of calipers to shoo the difference la thickness of the pipe, aad the difference ia the outside and the inside measurements of the collar. The collar is intended to stake a iaak-proof Joint -- if porfoct. Heff*s consents after his effective demonstration sere, "Ton can see it (the differeaees and imperfections). Ton don't need calipers. That's the kind of serop, 1 call it, that ve have got. X mean they shipped it to us aad it can't be used. / that's all. If you put this collar os this pipe, this pipe is off because ie is thin oa eae side aad thick oa the other. This collar is bad. If you happen to get the two thla sides together you have got a leak, aad believe as, you have got trouble* (pages 45-46) Beff vas asked if ha could observe tbs defects mentioned when the pipe vas delivered to him. Bis aasver vaa, "I could ob serve defects like this pipe. Pipe like this is obvious to visual inspection. When it vas dallvered it vas put in a pile out vhere it voulda't get mixed la vlth the good pipe. And this, these defects like this, imperfect machining, vhetber it vasn't molded right or vhat they did couldn't be detected at the time of instal lation because you can't take a pair of calipers aad run around on the Jab sad chock all these. You have so much pipe there. Yon have to got It laid, tut after yon have a leak and they start giving CIVIL CASK MO. 2099 Pag* fin* jo* trouble jo* taka than boa* *lth you and try to figure out vhat happened. Too try to get down to a basis why aro you hawing tkoaa laaka because it is something you haw* to cove yourself. To* jsst **'aara and a tody aad f Igora and do evarything yon can. Finally yoa eaata p with an answer Just lika I did on this." (paga 47) Dwalling still on lnperfeetlons of pips, and attribnting to this faetthe causa of th* laaka, Neff continued, "Tha pip* itaalf and tha collars ware aada imperfect. They arc nat round lika they should ha0 Thar* is a diffarano* in tbicknass there. Ton haw* only got a littl* ladga (which) holds that rubber la place, 3/32 of an inch la thara aeaas a leak. That's all. If yon gat your water pressure behind that rubber on oae side you bane got a gap la there. To* have got trouble. Tou hawa got a leak." (page 60) Following this statenest, laff aada a practical demoustra*. tioa using calipers to aaasure dimensions of both the pipe and collars. According to Veff they ware not *ada true to fit each other. Th* collars had different disasters. Thera was a differ* anca between inside dlaaatars froa on* coupling to another. Zn laying tha pip* this difference would account for luperfeet Joint and cans*quantly leak occurrences, (pages 64*65) Systsn of Manufacture of A-C Transits Pipe Oran 8chlearner supervisor of quality control at Johns.lfaanllla's Waukegan plant explains th* systen used in aannfscturing A-C transits pips on pages 163 through 165 of the testinsny. This makes wary inter esting reading indeed, and many good points can be selected to ns* te aer own advantage. Toward tha end of the testimony, Mr. Janas, attorney for CIVIL CASE 190 . 2099 Page Mix Herb Raff, cross-examined Paul Harlaaerc, J-H regional sales msnagor. The setter of uniformity and tolerances of gaskets seed by J-M vat being discstead and we excerpt the dlalogne as follows: (Nr. Jones leading the questions) Q. Do these gaskets here to be nnifors in sites and circumferences? A. Within a reasonable degree allowable by certain tolerances whleh we designed in the ring. Q. What is the telarence on those gaskets that yon allow? A. Ton are asking the wrong nan. I wouldn't know bat -- Q. Too ere a neehanieal engineer? A. That's right. Q. And yon haws charge of instructing cuetoners? A. That's right. Q. Bat yon don't know the tolerances that are allowed? A. I can find then for yon, I know that they are available bat I wouldn't sake a guess on the stand as to what the tolerances , are because they are not important to me at the moment. I an selling a coapleted -Q. Ton are celling pipe. A. I an selling a complete factory manufactured research laboratory specified product. Is that right? Mr, Jones: That's ell. (pages 189.190) laftrriid^ioiraf As stated la the nesorandus covering thla report* this case was decided for the contractor. Herb Waff, and against Johns* Weeville Corporation. Wa do not have available at this tine a re port of the proceedings following this testlnoay. However, there are several points to be observed in the testisony which can be need to onr advantage. We elte a few: CIVIL CASS HO. 2099 fags a 1. Hepeatsd evideuca was submitted to the fact that the contractor obstmd the installation lac tractions indicated by J-M. Instructors fron J-M "saperffsod" the laying of A-C transits pipe oa this project. Therefore * it coaid be laferred that tha leaks did not directly resalt froa faalty installation. 2. It the leaks did aot result froa faalty installation* thorn thoy vast ho attributed to inherent defects and inperfectioaa la tha product itaclf. Aspic evidence vac presented and practi cally deaosstrated in court to show those defects and inperfectioaa* 3. Considering the defects and inperfectioaa of the product* n logical deductioa is that tha product was aot suitable for the purpose for which it was intaadsd* Thsrefora* there is justification in the contractor's clalns against tha supplisr of inferior* unsuitable materials. 4* Loss of profits by the contractor should deserve full consideration since he actually diverted his efforts because of lsaks which originated through no fault oa his part*