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SALEM SAND & GRAVEL COMPANY v. CITY OF SALEM

492 P.2d 271 (1971)

SALEM SAND & GRAVEL COMPANY, a Corporation, and C.J. Montag & Sons, Inc., a Corporation, Dba M & S Construction Co., Appellants, v. CITY OF SALEM, Oregon, a Municipal Corporation, Defendant, and Cornell, Howland, Hayes & Merryfield, Inc., a Corporation, and James C. Howland, Thomas B. Hayes, Fred Merryfield, Holly A. Cornell, Archie H. Rice, Earl C. Reynolds, Jr., Ralph E. Roderick, Robert R. Adams, and Sidney E. Lasswell, Respondents.

Supreme Court of Oregon.

Decided December 30, 1971.

Attorney(s) appearing for the Case

Cleveland C. Cory, Portland, argued the cause for appellants. With him on the briefs were Richard A. Franzke and Davies, Biggs, Strayer, Stoel & Boley, Portland.

John Gordon Gearin, Portland, argued the cause for respondents. With him on the brief were Gearin, Hollister & Landis, Portland, and John B. Fenner, Corvallis.

Before O'CONNELL, C.J., and DENECKE, TONGUE, HOWELL and BRYSON, JJ.

HOWELL, Justice.

Plaintiffs, joint venturers, were successful bidders for the construction of a sewer line for the City of Salem. The defendants are engineers hired by the city to prepare the plans and specifications for the sewer project and to supervise and direct the construction of the project. Plaintiffs filed this action charging fraud and misrepresentation against the City of Salem and the engineers in withholding...

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