Boyer Construction Group Corp. v. Walker Construction Company, Inc. and Muller Realty, LLC

44 N.E.3d 119, 2015 Ind. App. LEXIS 651, 2015 WL 5612766
CourtIndiana Court of Appeals
DecidedSeptember 24, 2015
Docket45A03-1502-PL-66
StatusPublished
Cited by2 cases

This text of 44 N.E.3d 119 (Boyer Construction Group Corp. v. Walker Construction Company, Inc. and Muller Realty, LLC) 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
Boyer Construction Group Corp. v. Walker Construction Company, Inc. and Muller Realty, LLC, 44 N.E.3d 119, 2015 Ind. App. LEXIS 651, 2015 WL 5612766 (Ind. Ct. App. 2015).

Opinion

RILEY, Judge.

STATEMENT OF THE CASE

[1] Appellant-Defendant/Cross-Appel-lee, Boyer Construction Group Corp. (Boyer), appeals the trial court’s denial of its post-judgment petition for attorney’s fees. Appellee-PlaintiffyCross-Appellant, Walker Construction Company, Inc. (Walker), cross-appeals the trial court’s denial of its petition for supplemental attorney’s fees.

[2] We affirm in part, reverse in part, and remand.

ISSUES

[3] Boyer raises two issues on appeal, which we restate as the following three issues:

(1)Whether the trial court erred in concluding that Boyer had waived its claim for attorney’s fees;
(2) Whether the trial court abused its discretion in denying Boyer’s post-judgment petition for. attorney’s fees;, and
(3) Whether the trial court erred in issuing a sua sponte correction to its judgment, ordering Boyer to pay a portion of

Walker’s attorney’s fees. '

[4] Walker raises one issue on cross-appeal, which we restate as. follows: Whether the trial court abused its discretion by denying Walker’s petition for . supplemental attorney’s .fees based on its mischaracterization of the fees as “post-judgment” work.

FACTS AND PROCEDURAL HISTORY

[5] In September of 2010, Muller Realty, LLC (Muller) contracted with Boyer, a general contractor, to design and build a car' dealership in Merrillville, Lake County, Indiana. To carry out the project, Boyer subcontracted the concrete work to Walker. On August 1, 2011, Boyer and Walker executed two, nearly identical Subcontract Agreements. Under one of the Subcontract Agreements, the Site Concrete Contract, Boyer agreed to pay the sum of $79,400 for Walker to complete the concrete sidewalks,, curbs, dumpster pad, and aprons at the street entrances. The other Subcontract Agreement, the Building Concrete Contract, provided that Boyer would pay Walker the sum of $215,840 for completing the concrete footings, foundation walls, and a colored and sealed slab-on-grade interior floor. -In pertinent part, the Subcontract Agreements included the following provision to govern dispute resolution:

Attorney’s Fees and Consulting Fees (only as needed to defend) in the event of any litigation between the parties hereto concerning the performance of either party’s services, the substantially prevailing party shall be entitled to re *122 cover reasonable attorney[’s] fees and court costs from the other party.

(Appellant’s App. p. 39).

[6] Walker commenced the work on August 2,. 2011. As the project progressed, several change orders were incorporated into the Subcontract Agreements, adding $8,486 to the total agreed-upon price. Upon completion of various phases of the project, Walker was to remit applications for progress payments to Boyer. Boyer could then either approve the work and submit the application to Muller to make direct payment to Walker, or Boyer could reject the work and notify Walker in writing as to why payment was being withheld. On April 17, 2012, Walker substantially completed the projects under both the Site Concrete Contract and the Building Concrete Contract. That day, Walker submitted invoices to Boyer to request a final payment of $30,204.40.

[7] In June of 2012, Boyer requested that Walker return to the project site to perform additional concrete work not contemplated under the original Subcontract Agreements. After completing the additional work, Walker submitted an invoice to Boyer on June 14, 2012, in the amount of $1,308. Then, in October of 2012, Boyer requested that .Walker repair some concrete that had been damaged by Boyer’s asphalt subcontractor. Walker completed the additional work on October 31, 2012, and submitted an invoice to Boyer on November 8, 2012, for $372. It is unclear whether, or at what point, Boyer transmitted Walker’s final invoices to Muller for payment, but it is undisputed that Walker’s work was not rejected in accordance with the terms of the Subcontract Agreements, and Muller never paid Walker the outstanding balance of $31,884.40.

[8] On December 14, 2012, Walker filed its notice of intent to place a mechanic’s lien on the project site, and on March 1, 2013, Walker filed a Complaint for Foreclosure of Mechanic’s Lien against Muller and Boyer and further alleged that Boyer had breached the Subcontract Agreements. Walker sought judgment against both Muller and Boyer in the amount of $31,884.40, plus pre-judgment interest, reasonable attorney’s fees, and lien costs. Muller subsequently counter-claimed against Walker, alleging damages resulting from substandard workmanship with respect to the slab-on-grade interior floor.

[9] On August 11, 2014, the trial court conducted a bench trial, which concluded when the final evidence was submitted on August 22, 2014. On November 26, 2014, the trial court issued its Special Findings of Fact, Conclusions of Law and Order (Order). The trial court determined that Walker had “fully complied with [its] obligations” by completing the contracted work in a workmanlike manner. (Appellant’s App. p. 147). The trial court further concluded that Boyer had breached the Subcontract Agreements “by not paying for the work Walker did ... and by neither submitting Walker’s invoices nor rejecting Walker[’]s work.” (Appellant’s App. p. 147). Finally, the trial court found that Walker was entitled to foreclose on its mechanic’s lien against Muller. Accordingly, the trial court entered judgment against Boyer in the amount of $1,680 plus pre-judgment interest. As against Muller, the trial court entered judgment in Walker’s favor in the amount of $31,884, plus attorney’s fees/costs of $41,854.15 and prejudgment interest of $5,101.44, for a total of $78,839.99. 1

*123 [10] On December 17, 2014, Boyer filed a motion to assess attorney’s fees against Walker, arguing that because “Walker’s claim against Boyer sought contract damages, attorney’s fees, costs, and prejudgment interest that ultimately amounted to $78,839.99, but recovered a judgment of only $1,680, 2.1% of the amount sought, Boyer is the ‘substantially prevailing party* within the meaning of the Subcontract, and therefore ‘shall be entitled to recover reasonable attorneys’ fees and court costs’ from Walker.” (Appellant’s App. p. 151). Accordingly, Boyer requested an award of $62,984.40 in attorney’s fees and expenses. Boyer explained that this amount represented 97.9% of its total fees and expenses based on the fact that Walker did prevail on 2.1% of its claim against Boyer.

[11] Walker responded on December 29, 2014, arguing that Boyer had waived any right to recover attorney’s fees by failing to counterclaim or otherwise plead the issue prior to the trial court’s judgment. Moreover, Walker claimed to be the substantially prevailing party for purposes of the Subcontract Agreements and asserted that it had incurred an additional $20,400.28 in attorney’s fees and expenses due to extended trial days, post-trial work, and in responding to' Boyer’s “frivolous, certainly meritless” claim for fees. (Appellant’s App. p. 173).

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44 N.E.3d 119, 2015 Ind. App. LEXIS 651, 2015 WL 5612766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyer-construction-group-corp-v-walker-construction-company-inc-and-indctapp-2015.