Byerly, d/b/a Byerly Construction Co. v. Lusardi

182 N.E.2d 4, 133 Ind. App. 315, 1962 Ind. App. LEXIS 162
Indiana Court of Appeals·Decided May 7, 1962·No. No. 19,316·Published·Cited by 1 cases

Opinion

Myers, J.

This was an action brought by appellant, doing business as Byerly Construction Company, to foreclose a mechanic’s lien against appellees, Lusardi and Lusardi, husband and wife, in the sum of $10,458.64, plus attorney fees, for the construction of a residence in the City of Fort Wayne, Indiana.

Following the filing of the complaint, appellees, Old Fort Supply Company, Inc., Standard Plumbing & Hardware Supply, The Erie Materials Co., Inc., and Cline Lumber Company, filed their separate mechanics’ liens against the real estate involved. Appellant then filed a supplemental complaint for foreclosure joining these appellees as additional parties defendant. He also included appellee, Waterfield Mortgage Company, Incorporated, as a party defendant as mortgagee to answer as to its interest in and to the real estate.

[317]*317The Lusardis filed what amounted to a general denial, pursuant to Supreme Court Rule 1-3, and two paragraphs of a cross-complaint wherein they alleged that there was a written agreement between them and appellant to construct a dwelling house; that appellant’s work was not done in a workmanlike manner; that appellant refused to correct the defects or complete the building; that they were obliged to employ contractors to complete the job to satisfy requirements of the Federal Housing Administration (hereinafter called FHA) ; that when the building was completed to the satisfaction of the FHA, appellant refused to sign necessary papers, thus preventing the Lusardis from completing their finance arrangements with appellee, Waterfield Mortgage Company, Incorporated; that as a result of such refusal, the FHA would not endorse the note given to appellee mortgage company. Damages were asked.

Waterfield Mortgage Company, Incorporated (hereinafter called Waterfield), filed its answer in two paragraphs, the first being in general denial, pursuant to Supreme Court Rule 1-3, and the second alleging that a note and mortgage had been signed by the Lusardis and the mortgage placed of record in the Recorder’s Office of Allen County, Indiana. Waterfield asked that this mortgage be declared a first lien, superior to that claimed by appellant.

For answer to the Lusardis’ cross-complaint, appellant denied all allegations in one paragraph and set up affirmative defenses in a second paragraph.

The other four appellees filed answers and cross-complaints, which do not need to be considered as it was stipulated before trial that each was entitled to recover the amount of its lien, together with reasonable attorney fees.

[318]*318The real quarrel was between appellant and the Lusardis. The evidence revealed that there was an agreement between them whereby appellant was to build a house and garage for the Lusardis in Fort Wayne, based upon an FHA loan. The original construction contract was in writing, dated November 9, 1955, and stated that appellant was to furnish material and labor, other than material furnished in a package unit, to completely construct a Precision House in accordance with plans and specifications to be approved by the FHA. The Lusardis were to pay appellant $2,000 in cash, $1,000 upon completion of the foundation and $1,000 upon completion of the house. Appellant agreed to credit the Lusardis with $1,200 in addition to the $2,000 cash for the exclusive use of the house as a model home for a period of one month from date of completion.

The Lusardis applied for an FHA loan from a mortgage corporation based upon an FHA valuation of $18,500 and a loan valuation of $15,300. The commitment was issued and assigned to appellee, Waterfield, which drew the mortgage papers and had them signed on February 20, 1956, being the same day the Lusardis received a deed to the premises.

It was stipulated that Waterfield paid out from the mortgage proceeds certain sums for materials, the cost of the real estate, and to appellant as part payment under the contract with the Lusardis, leaving undistributed the sum of $5,953.32.

At the trial there was much conflict in the evidence as to the exact contract entered into between the parties. Appellant contended that he did not agree to build the house for $18,500, but at cost plus ten per cent. He claimed that this was the result of a verbal agreement. This was denied by the Lusardis. [319]*319Appellant claimed that he had to alter the plans and put in extras pursuant to Lusardi’s direction, which added to the cost. Lusardi stated that he knew nothing about the extras until they were ready to close the transaction at Waterfield’s office in April, 1956. Appellant disputed the amounts which Lusardi said were necessary to complete the house and correct faulty construction.

The trial court made very complete and extensive findings of fact in which it found that the written contract of November 9, 1955, constituted the agreement between appellant and the Lusardis; that there was a substantial compliance for the use and display of the house as a model home for one month; that there was a firm commitment for an FHA loan in the sum of $15,300 which was assigned to Waterfield; that the deed, note and mortgage were executed February 20, 1956, and the deed and mortgage placed of record then; that the mortgage sum of $15,300, together with $2,000 delivered to Waterfield by the Lusardis, and credit for the display in the sum of $1,200, made a total of $18,500, which was the agreed price for the real estate and house.

The court further found that the value of the extras provided by appellant and the value of the. materials and labor not furnished and performed by appellant were equal; that there was due and owing-appellant the sum of $1,582.51; that he was entitled to judgment for this sum secured by a mechanic’s lien.

Other findings were made disposing of claims in favor of appellees, including Waterfield. In regard to the latter company, the court specifically found that there was due and owing it the sum of $3,500 disbursed for the payment of real estate, which amount was [320]*320secured by a mortgage in. Water field’s favor on the real estate and being a first lien thereon.

. Conclusions of law were filed in accordance with these findings and consistent judgment was entered in favor of appellees, Old Fort Supply Company, Inc., Standard Plumbing & Hardware Supply, The Erie Materials Co., Inc., Cline Lumber Company and Water-field, against the Lusardis and in favor of appellant, wherein the mortgage and mechanics’ liens were ordered foreclosed and the property sold. Appellant was then ordered to be paid from the balance of the funds remaining from the sale of the property after satisfying the appellees. Any monies left over were to go to the Lusardis.

Appellant filed his motion for new trial, which reads as follows:

“Comes now plaintiff in the above entitled cause and- moves for a new trial on each of the following grounds, to-wit:
“1. . The damages assessed by the court against plaintiff in favor of Julius Lusardi and Florence Lusardi are excessive;
“2. Error in ' the- assessment in the amount of recovery in favor of plaintiff, in this, the amount is too small;
“3. That the plaintiff in this cause was entitled to recovery by his complaint, and did so recover, but was awarded substantially less recovery than the facts in evidence show his actual pecuniary loss to be;
“4.

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Byerly, d/b/a Byerly Construction Co. v. Lusardi, 182 N.E.2d 4, 133 Ind. App. 315, 1962 Ind. App. LEXIS 162 (Ind. Ct. App. 1962).

182 N.E.2d 4 (Byerly, d/b/a Byerly Construction Co. v. Lusardi) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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