Art Metal Products Co. of Chicago v. Royal Equipment Co.

670 S.W.2d 152, 38 U.C.C. Rep. Serv. (West) 1202, 1984 Mo. App. LEXIS 3715
CourtMissouri Court of Appeals
DecidedApril 24, 1984
DocketNo. WD 34710
StatusPublished
Cited by3 cases

This text of 670 S.W.2d 152 (Art Metal Products Co. of Chicago v. Royal Equipment Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Art Metal Products Co. of Chicago v. Royal Equipment Co., 670 S.W.2d 152, 38 U.C.C. Rep. Serv. (West) 1202, 1984 Mo. App. LEXIS 3715 (Mo. Ct. App. 1984).

Opinion

MANFORD, Judge.

This is a civil action on account tried to the court without a jury. The judgment is affirmed as modified.

A sole point is presented, charging that the trial court erred in entering its judgment, because the judgment was against the weight of the evidence in that the same acts, which in the two contracts involved were performed by appellant, constituted either performance or breach in both contracts so that ultimate liability could not, as a matter of law, rest with appellant.

This cause, having been tried to the court, places the review of same within Rule 73.01 as that rule has been interpret[153]*153ed by Murphy v. Carrón, 536 S.W.2d 30 (Mo.banc 1976). The following is a summary of the pertinent facts.

J.E. Dunn, Jr. and Associates (respondent-third party defendant and hereinafter referred to as Dunn) contracted with the Park Hill School District in Kansas City, Missouri for construction work at Park Hill Senior High School. The project was to be completed on November 1, 1979. As part of that project, Dunn entered into a subcontract with Royal Equipment Company, Inc. (original defendant-third party plaintiff-appellant and hereinafter referred to as Royal) wherein Royal was to provide student athletic lockers. By its terms, the subcontract subjected Royal to the terms of the general contract between Dunn and the school district, inclusive of architect approval, plans, and specifications. The subcontract between Dunn and Royal was executed on May 31, 1978. Royal was required to submit “shop drawings” of the lockers, as they were custom made and not a standard locker item. Royal submitted five separate “shop drawings” over a thirteen-month period, and all were rejected by the architect except the fifth. In turn, Royal contracted with Art Metal Products Company (original plaintiff-respondent and hereinafter referred to as Art Metal) for the manufacture of the lockers according to the specifications for them. The lockers, when completed by Art Metal, were to be shipped to the school where Royal was to install them.

The specifications for the lockers provided that the lockers were to have perforated bottoms, fronts, and sides as to provide ventilation for sports clothing and equipment. When the lockers arrived, they had solid bottoms. Arrival of the lockers did not occur until December 27, 1979, almost two months after the project completion date prescribed in the prime contract. On December 31, 1979, the architect rejected the lockers because they did not have perforated bottoms.

Dunn notified Royal, and on January 2, 1980, a meeting at the project site was held, which included representatives of the architect, Dunn, and Royal. At this meeting, the architect told Royal that the solid bottoms must be removed and perforated bottoms installed. Royal failed to notify Art Metal of the architect’s directive, although Royal had the obligation to communicate with Art Metal.

On January 3, 1980, Dunn by letter confirmed the removal of the solid bottoms with Royal, indicated Dunn’s awareness of Royal’s delay, and advised Royal that unless the lockers were corrected, Dunn would contract with a local firm to do it. On January 5, 1980, Dunn again in writing demanded Royal to correct the lockers according to the architect’s specification.

As an alternative, Royal cut a three-inch hole in the locker bottoms and ordered from Art Metal four-inch by four inch plates with a center perforation to be laid over the three-inch hole. These “infill plates” were delivered to Royal by Art Metal on January 31, 1980.' The so-called modification by Royal was completed on about February 20, 1980. On March 10, 1980, the architect viewed Royal’s modification, rejected it, and advised Dunn that fully perforated bottoms were wanted and that the partial infill plates were not acceptable. Dunn in turn notified Royal. Royal in turn never advised Art Metal.

Again, on March 17, 1980, Dunn advised Royal that the modification was not acceptable to the architect, demanded that the matter be corrected, and if not done, Dunn would contract a local company to complete the job. This notice also advised Royal of potential backcharges for Royal’s failure to complete the work. This notice was not forwarded to Art Metal by Royal. A like communication was again sent by Dunn to Royal on April 15, 1980, and Royal in turn did not advise Art Metal.

By June 11, 1980, Royal had still failed to replace the locker bottoms, and at that time the architect directed Dunn to conduct an air-flow test for locker ventilation. This test was conducted by the heating installation company for the project, the Air Cooling Company. On July 7, 1980, the architect in writing advised Dunn that the par[154]*154tial plates installed by Royal did not comply with the plans and specifications for the lockers. The architect also advised that the infill plates would cause problems with the locker ventilation system and that fully perforated locker bottoms had to be installed. The architect also directed Dunn to advise if the correction could not be made by August 1, 1980, as the school year was about to commence. The architect also advised Dunn that if the correction could not be made by August 1, 1980, Dunn should hire another company to complete the work. On July 10, 1980, Dunn forwarded the architect’s letter to Royal. In addition, Dunn advised Royal to notify Dunn if Royal could not meet the August 1, 1980 date. Dunn further stated that if Royal could not complete the work by August 1, 1980, Dunn would hire a local firm to perform it. This notice from Dunn was not forwarded to Art Metal by Royal.

A witness for Art Metal testified that the first time Art Metal was advised by Royal that the architect wanted perforated bottoms was on July 17, 1980. On July 22, 1980, Dunn in writing again contacted Royal, asking for written verification of the work completion by August 1, 1980. Art Metal was never advised of this communication. On July 29, 1980, Art Metal forwarded two (sample) perforated bottoms to Royal for acceptance. The samples were forwarded for approval prior to the manufacture of the remaining 180 required to complete the job. Royal never advised Dunn about the sample plates and in turn never advised Dunn that the work would be completed by August 1, 1980.

On July 31, 1980, Dunn wrote to Royal, advising the latter that Dunn had no alternative but to hire a local firm to complete the job and that Dunn could backcharge Royal for the completion costs. Under the terms of the subcontract, Dunn with Royal exercised its right to cancel and in turn hired the H. Zahner Sheet Metal Company to complete the work on the lockers. Completion was achieved on about August 22, 1980 for a total cost of $6,075.00. This same sum was backcharged to Royal by Dunn. Since it was backcharged, Royal did not pay the remaining sum claimed due by Art Metal. Art Metal sued Royal on account for $6,075.00. Royal in turn filed a third-party petition against Dunn, charging breach of the subcontract. The case was tried to the court, which entered judgment for Art Metal and against Royal in the sum of $6,075.00, and in turn found for Dunn and against Royal on Royal’s third-party claim. This appeal followed.

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670 S.W.2d 152, 38 U.C.C. Rep. Serv. (West) 1202, 1984 Mo. App. LEXIS 3715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/art-metal-products-co-of-chicago-v-royal-equipment-co-moctapp-1984.