Brashear v. Richardson Constr., Inc.

10 P.3d 1115, 2000 Wyo. LEXIS 183, 2000 WL 1160803
CourtWyoming Supreme Court
DecidedAugust 17, 2000
Docket99-325
StatusPublished
Cited by3 cases

This text of 10 P.3d 1115 (Brashear v. Richardson Constr., Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brashear v. Richardson Constr., Inc., 10 P.3d 1115, 2000 Wyo. LEXIS 183, 2000 WL 1160803 (Wyo. 2000).

Opinion

KITE, Justice.

Appellant Bill Brashear d/b/a B & W Painting & Wallcovering (the subcontractor) filed a complaint against Appellee Richardson Construction, Inc. (the general contractor), seeking payment on a subcontract for services (the contract) rendered including painting and wallpapering. The contract provided for liquidated damages for every day of delay caused by the subcontractor after April 7, 1998. The entire project had an estimated completion date of April 8, 1998. The subcontractor was not allowed to begin work until April 18, 1998, six days after the completion deadline in the contract. The general contractor counterelaimed, seeking liquidated damages for delays allegedly *1116 caused by the subcontractor and recovery of additional costs to the general contractor resulting from work it performed to correct and complete the subcontractor's work. After trial, the district court awarded the general contractor $14,858.86 for the costs incurred to cure the defects caused by the subcontractor and $17,550 in liquidated damages. These awards were set off against the $30,601 the district court found that the general contractor owed for work performed under the contract resulting in 'a judgment against the subcontractor of $1,807.86. The subcontractor appeals to this Court. In his brief, he limited the appeal to the issue of the liquidated damages award. We affirm the district court's judgment as to costs, reverse the award of liquidated damages, and remand.

ISSUES

The subcontractor presents the following issue:

Whether the Trial Court erred in assessing liquidated damages against Appellant, when the contractual provision regarding liquidated damages did not apply to the factual situation found by the Court.

The general contractor restates the issue as:

ISSUE I: Whether the District Court erred in awarding Appellee a set-off from the claimed contract amount for liquidated damages. -
IA. The Liquidated Damages provision of the Subcontract does not contain a condition precedent, the failure of which would negate the entire provision.
IB. Appellant failed to claim a right to an extension of time in the manner required by the Subcontract.
IC. Appellant waived the application of the date as a condition precedent by his actions[.]

FACTS

The subcontractor and the general contractor entered into a contract on July 31, 1997, for the performance of certain services on the remodeling of a church in Sidney, Nebraska. Section E of the contract specifically provided:

In addition to Contractor's other remedies set forth herein, in the event that contractor is delayed in completing the project by April 7, 1998 due to actions or inaction[ Is of Subcontractor, Subcontractor shall be liable to Contractor for Liquidated Damages of Three Hundred Twenty[-]Five Dollars ($325.00) per calendar day of such delay.

(Emphasis added.) On August 5, 1997, the subcontractor acknowledged receipt of a Notice to Proceed dated July 31, 1997. However, in November and December 1997, the project was delayed due to a number of different causes, none of which were under the control of the subcontractor. Initially, the subcontractor was scheduled to begin work February 1, 1998. The start date was delayed by weather and change orders unrelated to the subcontractor. It was undisputed that the subcontractor did not begin work until April 18, 1998. At that time, sheetrock-ers were still not finished with their work, and they and other trades limited the subcontractor's efforts. On June 15, 1998, the architect for the owner certified that the subcontractor's work was eighty percent completed, and the owner paid the general contractor for eighty percent of the subcontractor's work. In late June, the architect noticed certain problems with the subcontractor's installation of the sisal wall covering (the sisal). There was a dispute concerning the notification of the subcontractor of the problems. The owner, on or about June 80, 1998, gave written notice of the rejection of the sisal installation and a demand to cure. In late June, the subcontractor demanded payment for the work completed, but the general contractor withheld payment pending correction of the noted problems with the sisal installation. The owner's architect, the general contractor, and the subcontractor negotiated concerning how the defect should be cured. The subcontractor wanted to try to correct the problems without removing the sisal, but the architect insisted that removal and reinstallation consistent with the manufacturer's instructions were required. After the end of June, the subcontractor performed no significant work. On August 10, 1998, the general contractor terminated the contract *1117 and removed and reinstalled the sisal. The subcontractor does not contest the judgment against it for the costs of that additional work. The project was accepted by the owner as complete on October 1, 1998.

The owner assessed liquidated damages to the general contractor pursuant to the general contract for more than 118 days of delay in the project completion. 1 The general contract was not included in the record, and, therefore, the terms and conditions of the liquidated damages charged by the owner against the general contractor cannot be ascertained. The general contractor allocated fifty-four days of delay to this subcontractor based upon what the general contractor considered was a "reasonable" basis with 'the remaining days of delay being allocated to the general contractor and other subcontractors. The record contains no evidence concerning the basis for that allocation.

The subcontractor testified that he understood he was undertaking the work under the contract even though he was not allowed to begin work until a later date than was anticipated when the contract was signed. It appears from the testimony of the architect that the general contractor may have received an extension of the completion date from the owner by approval of a change order. A handwritten notation on the Final Acceptance Certification indicates that the general contractor may have received an extension of the completion date from April 8, 1998, to June 14, 1998, from the owner. However, the record does not contain the change order or orders which affected any such extension. No request for extension of time was made by the subcontractor or the general contractor of one another. The ree-ord reflects no change order or orders affecting an extension of the April 7, 1998, deadline which triggered liquidated damages in the contract between the general contractor and the subcontractor.

Before the controversy developed, the subcontractor was paid $2,524.50 for the sisal material costs he incurred. No further payments were made to the subcontractor.

STANDARD OF REVIEW

Resolution of this matter is governed by interpretation of the terms of the contract. Neither party contends the contract is ambiguous. Because the interpretation of a contract is purely a question of law, this Court conducts a de novo review of the district court's conclusions. Fremont Homes, Inc. v. Elmer, 974 P.2d 952

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10 P.3d 1115, 2000 Wyo. LEXIS 183, 2000 WL 1160803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brashear-v-richardson-constr-inc-wyo-2000.