Abbey Villas Development Corp. v. Site Contractors, Inc.

716 N.E.2d 91, 1999 Ind. App. LEXIS 1495, 1999 WL 722700
CourtIndiana Court of Appeals
DecidedSeptember 17, 1999
Docket02A04-9807-CV-345
StatusPublished
Cited by41 cases

This text of 716 N.E.2d 91 (Abbey Villas Development Corp. v. Site Contractors, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbey Villas Development Corp. v. Site Contractors, Inc., 716 N.E.2d 91, 1999 Ind. App. LEXIS 1495, 1999 WL 722700 (Ind. Ct. App. 1999).

Opinions

OPINION

BAILEY, Judge.

Case Summary

Appellanb-Defendant Abbey Villas Development Corporation (“Developer”) appeals the judgments entered after a bench trial 'in favor of Appellees-Plaintiffs S.O. Lougheed & Associates, Inc. (“Engineer”) and Site Contractors, Inc. (“Contractor”) in this action to foreclose mechanics liens [94]*94filed against Developer’s property.1 We affirm in part, reverse in part, and remand with instructions.

Issues

Developer raises seven issues. Because we reverse in part, we address the following restated issues only:

I. Whether the trial court’s determination that Engineer’s mechanic’s lien had been timely filed was clearly erroneous.
II. Whether the trial court’s determination that Developer was in breach of its contract with Contractor for failing to pay Contractor’s invoices when submitted was clearly erroneous.
III. Whether Contractor’s mechanic’s lien was void because its claim had originally been overstated.
IV. Whether the trial court’s calculation of Contractor’s damages was supported by sufficient evidence.
V. Whether the trial court’s calculation of Contractor’s attorneys’ fees incurred in the foreclosure of the mechanic’s lien was supported by sufficient evidence.

Facts

A. Introduction and Identification of Parties

The dispositive facts are largely undisputed. The facts have been taken from the trial court’s findings entered in conjunction with its judgment wherever possible. (R. 518-28). Developer is owned and operated by Joseph L. Sullivan (“Sullivan”) and is in the business of developing and marketing residential subdivisions. (R. 518-20, 2617). Contractor is in the business of excavating earth for the purpose of installing various infrastructure for residential and commercial projects. (R. 518). Engineer is an engineering and environmental consulting firm. (R. 518). Developer owned the subject real estate which it desired to develop into a residential subdivision known as Abbey Place Villas. (R. 518-19).

B. Contract and Dispute with Engineer

Developer hired Engineer to prepare the master development plan, prepare engineering plans and specifications, award contracts, and stake out the major control points for the construction. (R. 520). Engineer was not hired to conduct inspections or serve as construction manager on the project. (R. 520). Engineer was to be paid a flat fee of $15,000.00 for its services. (R. 520).

However, Engineer performed additional services for Developer not called for in their contract. (R. 521). Engineer billed Developer separately for the additional services. (R. 521). Eventually, Developer informed Engineer that it would not be paid for the additional services. (R. 522). Thus, in January of 1997, Engineer ceased all work on the project. (R. 522, 992). At that point, Engineer’s bill to Developer for the services beyond those covered by the $15,000.00 contract amounted to $6,872.00. (R. 992).

In March of 1997, Developer’s attorney contacted Engineer to inquire about the status of the project and to get Engineer to perform additional services. (R. 2526). As Engineer did not know the status of the project at that point, it “dug out the plans” because “the file had been long, long set aside” and began to investigate the matter. (R. 2527). Engineer called Sullivan to ask if Engineer would be paid for the additional services requested. (R. 2530). Sullivan informed Engineer that he had already been compensated under their contract and would not be paid any additional amounts. (R. 2530). Although Engineer billed Developer for four hours in March, Engineer did not provide Developer with any information or other benefit from the services performed. (R. 2532-33). Engineer testified that he believed that the services requested and performed were [95]*95beyond the scope of the original contract. (R. 2531).

Engineer filed its mechanic’s lien on May 9, 1997, to secure the payment of all amounts billed over the original $15,000.00 flat fee contract. (R. 2525). The trial court determined that the hen had been timely filed based on the billing generated in March. (R. 521). The trial court found that Developer owed Engineer $7,188.00 for the additional services rendered and entered judgment for that amount. (R. 523). The trial court also awarded attorney’s fees in the amount of $19,294.15 in conjunction with the foreclosure of Engineer’s mechanic’s lien. (R. 523).

C. Contract and Dispute with Contractor

Contractor submitted a written proposal, which Developer accepted, which provided in pertinent part as follows:

We are organized and exist under the laws of the State of Indiana and hereby submit to the [Developer], a proposal to perform the work for the Utility and Earthwork, and Streets in strict accordance with the Plans and Specifications within the time set forth and at the stated prices....
Our schedule of construction for the completion of the described work and appurtenances based upon the given start date is as follows:
1. Award Contract — Start construction
2. Complete Sanitary Sewer, Water Main, Storm Sewer and Earthwork Scope as described ready to turn over to Paving Contractor 60-90 Total Calendar Days.
3. Complete curbs, stone, asphalt base and surface 45-60 Total Calendar Days after sub-base is turned over.
We are pleased to submit the following Total Price (Lump Sum and/or Unit Price extension) based upon the plans and specifications for this project.
Total Price includes fees, permits, equipment, labor, materials, taxes, profit and overhead for installed items, complete and ready for their intended uses:
TOTAL PRICE (LUMP SUM AND/OR UNIT PRICE EXTENSION) FOR:
... [an aggregate of $382,546.10]
The total amount paid by the owner will be adjusted based upon the Itemized Bid Proposal Forms attached and the as-built quantities installed.
The attached Itemized Bid Proposal of unit prices and extensions will be used to adjust the total amount paid if work has been added or subtracted from original scope of work. Prices include fees, permits, equipment, labor, materials, taxes, profit and overhead for complete and installed items.
This proposal if accepted shall be executed as part of a standard contract. Payment will be made at 90% upon completion of the work with the 10% balance being released when work is accepted by the appropriate Agency and/or accepted by Owner.

(R. 651-52). The written agreement also provided:

The utilities extension work is proposed to be started in August, 1996, and completed, ready for the Utility Center’s Acceptance, on or before October 15, 1996. The site grading and street sub-grade shall be rough graded as quickly as possible with the streets being ready for stone on or before September 1st, 1996 Curbs are to be installed and

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Bluebook (online)
716 N.E.2d 91, 1999 Ind. App. LEXIS 1495, 1999 WL 722700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbey-villas-development-corp-v-site-contractors-inc-indctapp-1999.