Lumbermens Mutual Casualty Co. v. S. Morgan Smith Co.

The claim of the appellant is based upon the provision of the city’s contract with , the Smith Company, to which reference has been made. It is argued that while the first two sentences of the “guarantee” are essentially warranties as to design and workmanship, the third sentence is strictly a guaranty “which among other things insures the city against the cost and expense of parts which fail, provided the failure occurs within one year as a result of faulty design.” It is said that under the contract the gates were required to be designed so that in case of breakage of the operating…