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Contracts Keyed to Fuller
Angel v. Murray
Citation:
Angel v. Murray, Supreme Court of Rhode Island, 1974. 113 R.I. 482, 322 A.2d 630.ProfessorMelissa A. Hale
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Facts
James L. Maher was a provider of a refuse-collection service to the city of Newport under a series of 5 year contracts beginning in 1946. On March 12, 1964, the city entered into another 5 year contract with Maher, agreeing that in exchange for collecting and removing all combustible and non-combustible waste materials generated within the city, Maher would receive $137,000 per year. In June of 1967, Maher requested an additional $10,000 per year from the city because there had been a substantial increase in the cost of collection due to the building of 400 new dwellings in the city. The addition of these dwellings was unexpected by Maher, and not accounted for in the contract. The city council agreed to pay Maher the additional payment for the year ending in 1968. Maher made a similar request for the following year, and the council again agreed to pay him an additional $10,000 for the year ending in 1969, totaling $20,000 more than the original contract. Both payments were approved by the city’s director of finance, Murray (defendant). Plaintiff brought suit against Murray, Maher and the city of Newport alleging that the payments to Maher had been illegal, and the sum should be repaid to the city.
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Interpretation of the Contract