A.P. & Sons Construction v. Johnson

2003 SD 13, 657 N.W.2d 292, 2003 S.D. LEXIS 13
CourtSouth Dakota Supreme Court
DecidedJanuary 29, 2003
DocketNone
StatusPublished
Cited by17 cases

This text of 2003 SD 13 (A.P. & Sons Construction v. Johnson) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.P. & Sons Construction v. Johnson, 2003 SD 13, 657 N.W.2d 292, 2003 S.D. LEXIS 13 (S.D. 2003).

Opinions

AMUNDSON, Retired Justice.

[¶ 1.] A.P. & Sons Construction (A.P. & Sons) brought an action seeking to hold Earle Johnson, Jr. (Johnson) and Robert Bauman d/b/a Satco Homes Inc., (Bauman), personally liable for labor and materials provided in the development of West-view Addition. The trial court found Johnson was not personally hable. A.P. <& Sons appeal. We affirm.

FACTS

[¶ 2.] Earle D. Johnson, Jr. owned forty (40) acres of land in Watertown, SD. Bauman worked in the construction business. Robert Bauman married Johnson’s niece. Bauman approached Johnson and expressed his desire to develop Johnson’s property. Bauman offered to develop the land with the intention that he would be able to build houses on the lots that were sold. Although Bauman would receive no profit from the sale of the lots, he would profit from building houses. Bauman suggested that he thought Johnson’s parents would have wanted the land to be developed. After considerable thought, Johnson agreed to Bauman’s proposal to develop the land. It was agreed that because Johnson knew nothing about developing land and spent part of the year in Mexico, that Bauman would do the ground work on the project. Bauman would hire the engineers and contractors necessary to complete the project. It was Johnson’s under[294]*294standing that Bauman would coordinate the development aspect of the project.

[¶ 3.] In order to finance the development, Bauman obtained a loan from F & M Bank (Bank). Since Johnson owned the land to be developed, Johnson was required by the Bank to secure Bauman’s loan. Johnson mortgaged his land to the Bank and personally guaranteed the loan. Johnson made no other guarantees to any other party involved in the development of the land.

[¶ 4.] After obtaining the loan, Bauman contacted Ardell Aason (Aason). Bauman advised Aason of the plans to develop the Johnson land, known as Westview Addition. Aason was hired to survey and plat the land. Aason informed Bauman of the many obstacles to overcome in developing the land owned by Johnson. Aason suggested other sites that would be more suitable for development. Although Bau-man looked at some of the sites, he ultimately came back to the Johnson land.

[¶ 5.] At the outset, only the Johnson land was included in the development. Bauman approached Johnson and asked him to purchase another tract of land known as the DeVille tract. Johnson indicated that he was not interested in purchasing the land stating that he had all the land he wanted. Subsequently, Bau-man decided to purchase the DeVille tract himself, and did so using funds from the development loan. Bauman included the DeVille tract in the development plans without Johnson’s approval. Subsequently, the City of Watertown approved the plat of Westview Addition, included within was the DeVille property.

[¶ 6.] Bauman contracted with A.P. & Sons to dig trenches and install sanitary and storm sewers with water and services for twenty-eight hookups for lots in the Westview development. Johnson entered into no contracts with the contractors involved in the development. Bauman defaulted in payment for the materials and services provided by A.P. & Sons and the other contractors.

[¶ 7.] A.P. & Sons commenced an action to foreclose its mechanic’s lien. A.P. & Sons’ mechanic’s lien was found to be inferior to the Bank Mortgage. The trial court ordered a sale of the property and a sheriffs sale was held. The Bank purchased the land for the balance owing. Thus, A.P. & Sons received no funds to satisfy their liens for the materials and labor supplied.

[¶ 8.] A.P. & Sons sued Bauman and Johnson claiming they were personally ha-ble. The trial court ruled Johnson was not personally liable. A.P. & Sons appeal the following issue:

Whether the trial court erred in finding the property owner, Johnson, not personally liable for the labor and materials furnished in the development of the Westview Addition.

STANDARD OF REVIEW

[¶ 9.] This Court reviews the findings of a trial court under a clearly erroneous standard. Kokesh v. Running, 2002 SD 126, ¶ 10, 652 N.W.2d 790, 793; New Era Mining Co. v. Dakota Placers, Inc., 1999 SD 153, ¶ 7, 603 N.W.2d 202, 204 (citations omitted).

Clear error is shown only when, after a review of all the evidence, we are left with a definite and firm conviction that a mistake has been made. Id The trial court’s findings of fact are presumed correct and we defer to those findings unless the evidence clearly preponderates against them. Lewis v. Moorhead, 522 N.W.2d 1, 3 (S.D.1994)(citing Cuka v. Jamesville Hutterian Mut. Soc., 294 N.W.2d 419, 421 (S.D.1980)). Conclusions of law are reviewed under a de. [295]*295novo standard, giving no deference to the circuit court’s conclusions of law. Sherbum v. Patterson Farms, Inc., 1999 SD 47, ¶ 4, 593 N.W.2d 414, 416 (citing City of Colton v. Schwebach, 1997 SD 4, ¶ 8, 557 N.W.2d 769, 771).

Id. (internal quotes omitted).

[¶ 10.] We will not seek reasons to reverse the trial court.

It is well settled in this jurisdiction that a trial court’s findings of fact and decision are presumed correct and we will not seek reasons to reverse. Insurance Agents, Inc. v. Zimmerman, 381 N.W.2d 218 (S.D.1986); Northern Hills Sanitation v. Board of Com’rs, 272 N.W.2d 835 (S.D.1978). In action tried to court without jury, this court will not disturb findings unless evidence clearly preponderates against them. Gross v. Conn. Mut. Life Ins. Co., 361 N.W.2d 259 (S.D.1985) (citing Young v. Huffman, 77 S.D. 254, 90 N.W.2d 401 (1958)); see also City of Huron v. Jelgerhuis, 77 S.D. 600, 97 N.W.2d 314 (1959).

City of Winner v. Bechtold Investments, Inc., 488 N.W.2d 416, 418 (S.D.1992).

DECISION

[¶ 11.] This Court has held that “under ordinary circumstances, a property owner will not be held personally liable for work or materials furnished by a subcontractor to a contractor according to a contract between the contractor and subcontractor, where the property owner is not a party to the contract.” Sherman v. Meyer, 312 N.W.2d 373, 374 (S.D.1981). A.P. & Sons, in an attempt to circumvent this premise, has alleged that a partnership or a joint venture existed between Bauman and Johnson or in the alternative that there was an agency relationship. A.P. & Sons claim the trial court erred in not holding Johnson personally liable for the services and materials provided for in the development of Westview Addition because of the alleged special relationship between Bauman and Johnson.

[¶ 12.] The trial court found no facts supporting A.P. & Sons’ proposition that a partnership or joint venture existed between Bauman and Johnson.

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Cite This Page — Counsel Stack

Bluebook (online)
2003 SD 13, 657 N.W.2d 292, 2003 S.D. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ap-sons-construction-v-johnson-sd-2003.