Barber Bros. Contracting Co. v. Chet Homes, Inc.

393 So. 2d 352
CourtLouisiana Court of Appeal
DecidedFebruary 6, 1981
Docket13727
StatusPublished
Cited by6 cases

This text of 393 So. 2d 352 (Barber Bros. Contracting Co. v. Chet Homes, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barber Bros. Contracting Co. v. Chet Homes, Inc., 393 So. 2d 352 (La. Ct. App. 1981).

Opinion

393 So.2d 352 (1980)

BARBER BROTHERS CONTRACTING COMPANY, INC.
v.
CHET HOMES, INC., and Chester C. Rushing.

No. 13727.

Court of Appeal of Louisiana, First Circuit.

December 15, 1980.
Writ Refused February 6, 1981.

*353 Lawrence A. Durant, Baton Rouge, counsel for plaintiff-appellee, Barber Brothers Contracting Company, Inc.

Guy A. Modica, Baton Rouge, counsel for defendant-appellant, Chet Homes, Inc.

Before COVINGTON, CHIASSON and LEAR, JJ.

CHIASSON, Judge.

Chet Homes, Inc., defendant-appellant, appeals the decision of the trial court awarding Barber Brothers Contracting Company, Inc., plaintiff-appellee, the sum of $33,888.06, being the balance due on a contract existing between the parties. Appellant also appeals from the dismissal of its reconventional demand.

The following facts were stipulated to by the parties, to wit:

1) Chet Homes, Inc., as owner, entered into a contract with Barber Brothers Contracting Company, Inc. on July 3, 1973, for the construction of the streets, sidewalks, drainage and sanitary sewer facility in North Sherwood Estates Subdivision, East Baton Rouge Parish, Louisiana.

2) Plans and specifications were prepared by Billie F. Spell, Consulting Engineer.

3) The total amount of the contract, when signed on July 3, 1973, was for $244,736.40. The contract was based on unit prices and the final contract price totaled $247,331.30.

4) The subdivision was accepted by the City-Parish on October 23, 1974.

5) Letter dated July 9, 1973, was sent by owner to contractor for contractor to commence work as per the contract.

6) Work was started by contractor on July 16, 1973, and, as per the contract, was to be completed within 150 calendar days. (December 13, 1973).

7) No extension of time was granted nor requested by either party whatsoever, either oral or written.

8) Owner nor contractor never suspended or terminated the contract in writing or (orally) as per paragraphs 43 and 44 of the "General Conditions of the Contract."

9) Advances for the payment of the partial estimates were made to Chet Homes, Inc. by Cameron-Brown Company, which was financing the project on an interim basis.

10) Total payments made by owner to contractor amounted to $214,193.30.

11) Chet Homes refused to pay Barber Brothers the retainage ($33,888.06) after the expiration of the lien period.

The stipulated facts reveal that Barber Brothers completed the project 314 days after the completion time expressed in the *354 contract. Barber Brothers finished the project, though it did not receive some payments until well over a year after completion. Because Chet Homes had not met the stage payments timely, Barber Brothers had an option under the contract to either suspend work or complete the project. It chose the latter and is now demanding full payment of the contract price.

Chet Homes objects contending that Barber Brothers breached the contract by not having the project completed on December 13, 1973, the 150th day of the contract. Chet Homes argues that time was of the essence as specifically provided in the contract and the failure of the plaintiff to finish the work within the 150 days allotted constitutes a breach of the contract. Because of the breach, defendant contends plaintiff is liable for damages as stated in the contract in the amount of $100.00 a day. Defendant wants to offset this liquidated damage to the retainage it has kept from plaintiff.

In the alternative, defendant urges that there was actual damages in the amount of $117,853.90 and plaintiff is liable for that amount.

The trial court found that the defendant, by not making its stage payments timely, was in default and "that one who is in default cannot seek specific performance or put the other party in default." It concluded that Chet Homes needed to be in strict compliance with its obligation before it could seek damages.

The contract that was entered into by the parties is the law as between them. La. C.C. art. 1901. The contract in this instance provided for many of the situations that arose in this case. Pertinent provisions of the contract are as follows:

"TIME LIMIT: The Contractor shall commence work under this contract within ten (10) days of the date of this Contract, and upon written notice to proceed. Time is of the essence of the Contract and the work order shall be issued promptly.
"The work under this Contract shall commence on or before the 7th day following the date of mailing by regular mail of the notice to proceed, and shall be finished in One Hundred and Fifty (150) calendar days from said date.
"The Contract shall include all work to be performed under this Contract.
"A request by the Contractor for an extension of the contract time will be considered only if, in support of the request, the Contractor shall allege delay in the performance of the work by either or both the following causes:

(a) An act of the Owner

(b) `Fortuitous events' or `events beyond the control' as defined in Louisiana jurisprudence.

"FAILURE TO COMPLETE WORK ON TIME: Should the Contractor fail to complete the work within the time limit above specified, then in such event, and for each calendar day of such delay, the Contractor agrees to pay the Owner the sum of One Hundred and No/100 ($100.00) Dollars per day, which amount will be considered as liquidated damages due the Owner by reason of the Contractor's failure to complete the Contract within the specified time limit. The Contractor further agrees that the Owner may deduct such liquidated damages, computed at the rate of One Hundred and No/100 ($100.00) Dollars per day, from monies due or coming due to the Contractor under this Contract.
"PARTIAL PAYMENTS: The Owner will pay monthly estimates, on or about the tenth day of the month, if the amount due on the entire Contract amounts to Five Hundred and No/100 ($500.00) Dollars or more. Partial payments will not be made for a smaller amount.
"FINAL PAYMENT: Upon satisfactory completion of the work, the Owner will issue a written acceptance of the work to the Contractor who will immediately thereafter file same with the Recorder of Mortgages for the Parish of East Baton Rouge.
"Not less than thirty (30) days after filing the formal acceptance of the work with the Recorder of Mortgages, provided *355 that all work done under this Contract is at that time found to be in good condition insofar as the Contractor is responsible for it, the Owner will pay the Contractor the retained portion of the Contract price, after deducting therefrom such sums as may be lawfully withheld under any of the provisions of this Contract, ..."

Pertinent provisions of the General Conditions of the Contract are as follows:

"44. Contractor's Right to Suspend Work or Terminate Contract:

"The Contractor may suspend work or terminate Contract upon ten (10) days' written notice to the Owner and the Engineer, for any of the following reasons:
* * * * * *
(b) If the Engineer should fail to act upon any Request for Payment within ten (10) days after it is presented in accordance with the General Conditions of the Contract.
(c) If the Owner should fail to act upon any Request for Payment within thirty (30) days after its approval by the Engineer.

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Bluebook (online)
393 So. 2d 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barber-bros-contracting-co-v-chet-homes-inc-lactapp-1981.