B. F. M. Building, Inc. v. Trice

464 S.W.2d 617, 1971 Ky. LEXIS 491
CourtCourt of Appeals of Kentucky
DecidedFebruary 19, 1971
StatusPublished
Cited by4 cases

This text of 464 S.W.2d 617 (B. F. M. Building, Inc. v. Trice) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B. F. M. Building, Inc. v. Trice, 464 S.W.2d 617, 1971 Ky. LEXIS 491 (Ky. Ct. App. 1971).

Opinion

EDWARD P. HILL, Jr., Judge.

The hone of contention concerns the amount to which appellee George A. Trice is entitled for remodeling a two-story building at 1300 West Broadway, Louisville, Kentucky. Appellants, B.F.M. Building, Incorporated, and the former owners of the building (hereinafter owners), claim that a written contract dated July 28, 1964, signed by all interested parties controls the amount due appellee Trice (hereinafter contractor). The latter counters with the argument that the contract price stipulated in the written contract was fixed and inserted at the instance of the owners to enable them to borrow money to be used in the purchase and remodeling of the building, and that the actual agreement of the parties contemplated a cost-plus arrangement due to the uncertain nature of the remodeling job and the prospect that many changes would be necessary during the progress of the work.

The trial court accepted the contractor’s theory of the contract and awarded judgment against the owners for $25,782.78, the amount claimed by him, which amount was considerably in excess of the contract price stipulated in the written contract. We affirm.

It is contended by the owners that the circuit court erred (1) in not upholding the written contract; and (2) by overruling their demand for a jury trial. They also say the evidence was insufficient to support the judgment and that they were entitled to a new trial.

We shall first address a question of procedure. This is an equitable action commenced by subcontractors and lienhold-ers to collect their debts for labor and materials that went into the remodeling job. The owners filed a third-party complaint against the principal contractor, Trice, in which they relied on the contract. The contractor filed a “cross-complaint” against the owners in which he also relied on the written contract dated July 28, 1964, but did not seek a reformation of that part of the contract fixing the contract price. The owners say the judgment in favor of the contractor based on a cost-plus arrangement and ignoring the contract limitation as to amount was unauthorized for want of a pleading and prayer for reformation. This argument overlooks an “amended complaint” filed by the contractor on June 3, 1966, in which he stated the following:

“I. That the contract dated July 28, 1964, referred to by the Defendants, B.F. M. Building, Inc., Bryant, Frazier, and Morris, in their Third Party Complaint, was totally without consideration and was requested by Bryant, Frazier and Morris from George A. Trice to aid them with the financing of their proposed construction. That at said date, July 28, 1964, the Defendant and Cross Plaintiff, George A. Trice, had entered into no written contract for the purposed construction as the property owners had not decided what type of construction they desired. That the only contract and understanding by and between the parties was to the effect that said Defendant and Cross Plaintiff would work with and assist the property owners in their [619]*619construction and be adequately compensated. (Emphasis ours)
“II. Defendant and Cross Plaintiff, George A. Trice, further states that the property owners, Drs. Bryant, Frazier, and Morris, attempted to, and did in fact, deal with various sub-contractors pricing various materials, labor and construction, ordered themselves certain materials and changed plans on numerous occasions. That formal plans were never completed and partial plans were revised and changed on numerous occasions. That Defendant and Cross Plaintiff, George A. Trice, was assured he would be adequately compensated at the completion of said improvements.”

There follows a renewal of the original prayer for “any and all further relief to which” the contractor “may be entitled.”

As we construe the pleadings, the amendment constituted a revocation, or abandonment, or substitution of the allegations of the original answer and cross-complaint, entitling the contractor to rely on a verbal contract on a cost-plus basis. Murphy v. Torstrick, Ky., 309 S.W.2d 767 (1958). See also Vaughn v. Carlton, 309 Ky. 180, 217 S.W.2d 201 (1948).

The owners demand a reversal of the judgment on the ground they were improperly denied a jury trial.

As noted above, this action was originally properly filed in equity on April 19, 1966. An order was entered by the chancellor referring the case to the master commissioner for the purpose of hearing evidence on all questions in issue and for a report thereon. The owners made no objection to this order. It was not until June 9, 1966, that the owners demanded a jury trial in their answer to the cross-claim of the contractor. The question of a request for a jury trial was not brought to the attention of the trial court until after the hearing commissioner filed his report on January 10, 1969. True, the appellants made a verbal motion for a jury trial before the commissioner at the conclusion of the contractor’s evidence, but the commissioner properly overruled this motion as being too late. Also appellants failed to present to the chancellor their motion for a jury trial made verbally before the commissioner. In fact, the question did not come before the chancellor until the hearing of exceptions to the report of the commissioner in 1969. We think appellants waived jury trial or more properly the right to an issue out of chancery.

The right to trial by jury has occupied a central place in our jurisprudence. The authors of our present Constitution saw to it early in the arrangement of sections of the Constitution that the ancient mode of trial by jury shall be held sacred, and the right thereof remain inviolate when they inserted Section 7 of that Constitution. The right was simply taken for granted and so deeply accepted that its constitutional expression had the mechanical quality of a ritualistic gesture in favor of a self-evident truth needing no justification. The historic guarantee of the right of jury trial has been carried over into Clay’s Rules of Civil Procedure in Section 38.01.

This court has safeguarded to litigants the right of jury trial more zealously than has the weight of authority. We are told in 50 C.J.S. Juries § 23, that “ordinarily the parties to an action or proceeding in equity do not have the right to a jury trial.” Twenty-two states are listed under footnote 15 of the above section. Kentucky is not one of them. It should be remembered that the instant suit was properly filed in equity. The general rule is similarly stated in 47 Am.Jur.2d, Jury, § 34, at page 652, in this fashion:

“It is a well-established principle that the court of equity once having jurisdiction of a suit will retain jurisdiction of it for all purposes and dispose of all the litigation in the case even though this involves a determination of legal issues and the granting of legal remedies. The constitutional right of jury trial does not pertain to such legal issues or remedies.”

[620]*620Contrary to the general rule, this court has always recognized the right of jury trial of traditional legal issues in equity actions (issues that were triable by jury at common law). In Roberts v. Jiles’ Executrix, Ky., 307 S.W.2d 171, 174 (1957), it was said:

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Bluebook (online)
464 S.W.2d 617, 1971 Ky. LEXIS 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-f-m-building-inc-v-trice-kyctapp-1971.