California Viking Sprinkler Co. v. Cheney

182 Cal. App. 2d 564, 6 Cal. Rptr. 197, 1960 Cal. App. LEXIS 2147
CourtCalifornia Court of Appeal
DecidedJuly 8, 1960
DocketCiv. 18860
StatusPublished
Cited by9 cases

This text of 182 Cal. App. 2d 564 (California Viking Sprinkler Co. v. Cheney) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Viking Sprinkler Co. v. Cheney, 182 Cal. App. 2d 564, 6 Cal. Rptr. 197, 1960 Cal. App. LEXIS 2147 (Cal. Ct. App. 1960).

Opinion

TOBRINER, J.

Appellants urge that the evidence in this case fails to support the findings of the trial court enforcing a mechanic’s lien for the unpaid balance due upon a written contract for the installation of a pipe system of automatic sprinklers in appellants’ apartment house. Appellants claim that the court should have sustained their affirmative defense that respondent fraudulently misrepresented that 483 automatic sprinkler heads would be installed although it actually only installed 411. Performing our limited function of examining the record to determine if substantial evidence supports the findings, we have concluded that they are thus supported.

Three provisions of the contract particularly pertain to this case. The first provided, “The price for the work as specified in the within Proposal and Specifications is Fourteen Thousand Eight Hundred Fifty and No/100 Dollars ($14,850.00), based on the installation- of approximately 483 Automatic Sprinklers ...” The second postulated that the system be “subject to inspection by the Pacific Fire Rating Bureau and the San Mateo Fire Department—acting as the Agent of both parties, whose inspection and approval of the work done hereunder by the Seller shall be conclusive evidence of the proper performance and completion of the Seller’s obligations hereunder.” The third term, which the parties apparently struck out, stated, *567 “If more or less than the aforesaid number of either automatic or open sprinklers be required, Buyer shall be charged or credited at-Dollars ($-) each for Automatic Sprinklers and-Dollars ($-) each for Open Sprinklers. ’ ’

Appellants contend that by reason of the alleged fraud and misrepresentation the consideration they were to pay under the contract failed to the extent of $2,160. To respondent’s additional causes of action based on common counts for work, labor, services and materials, appellants repeat the same affirmative defenses of fraud and misrepresentation. Appellants further allege that the sum of $12,690 constitutes the reasonable value for the labor and equipment thus supplied as against respondent’s allegation that the contract price of $14,850 represented a reasonable market value for such installation.

The trial court rendered findings of fact and conclusions of law to the effect that there was no fraud or misrepresentation, no reliance by appellants, no damage incurred by appellants and no failure of consideration. Rendering judgment for respondent for the disputed sum of $2,821.50, with interest, counsel fees and costs, the court established a lien to this extent on the property. Appellants appeal from this judgment.

Our task resolves into an examination of the record under the familiar principles that we look only for substantial evidence to support the findings (Overton v. Vita-Food Corp. (1949), 94 Cal.App.2d 367 [210 P.2d 757]) and that we resolve every substantial conflict in the testimony in their favor. (Bancroft-Whitney Co. v. McHugh (1913), 166 Cal. 140, 142 [134 P. 1157].) We discuss, first, the findings and supporting testimony as to appellants’ principal issue of fraud; second, the findings and supporting testimony as to reasonable value of the services and materials; finally, the question as to whether respondent is entitled to attorneys’ fees and costs on appeal.

The crux of appellants’ case lies in their objection to Findings 17 through 23, which relate generally to the defense of fraud and misrepresentation. In substance appellants argue that the record shows (1) that representations “had actually been made that 483 automatic sprinklers would be required” and that no defense could be established that such “representation was not false, or known to be false by plaintiff’s agent, at the time made, or that the representation was made to induce defendants to approve the contract at the price of $14,850.00”; (2) that the number of sprinklers actually installed were substantially less than that represented and *568 that it is not “conceivable that the plaintiff’s sales engineer did not falsely represent to defendants the number that would be required”; (3) that only 411 heads were installed, requiring a finding of misrepresentation; (4) that defendants agreed to pay the sum of $14,850 because of the representations and their reliance on them; and (5) that plaintiff’s sales engineer represented that the price was computed at approximately $30.00 per head and “that was a rule of thumb in the industry.” Contending that these five points combine to compel a conclusion in their favor, appellants submit that the findings fall. We shall point out briefly that substantial evidence, however, sustains the findings.

Despite appellants’ first point that respondent’s fraud directly flows from the divergence in the number of sprinklers set forth in the contract and those actually installed, the court’s contrary finding rests upon substantial testimony. Contending that the number of sprinklers automatically and determinatively fixed the price, appellants stress the fact that respondent’s sales engineer Wakeman first prepared a proposal to install a system of approximately 498 sprinklers but later found he had misread the plans (“I had sprinklers out under . . . shades or awnings”) and reduced the number to 483. He testified the first proposal “included too many heads.” The number of heads comprised so vital a part in figuring the job, according to appellants, a substantial discrepancy between the expert’s figure and those installed could only originate from fraud.

The record, however, affords contrasting factors. In the first place, the parties treat the 483 heads figure as an “estimate”; in the second place, the contract provides that the price is “based on the installation of Approximately 483 Automatic Sprinklers.” Finally Wakeman’s testimony discloses that the number of heads indicates the “size of the system”; that “it is [a] very complicated system of pipes . . . the number of heads tells me . . . the size of the system ...” Thus the number of heads serves as the key to the size of the system, which is the determinative cost factor; the heads themselves do not constitute the cost factor. Hence, according to Wakeman, there could be considerable variation in the number of heads. “In other words when I get done with a job and I say 483 heads, I am happy if it is 10 or 20 less.” When Wakeman completes his estimate he submits the plans to the “engineer” of the company and “he takes the plans and actually draws this sprinkler plan that has *569 to be approved by Pacific Fire Rating Bureau and that our men install . . .” According to Wakeman, the figure “wasn't based on a particular number of sprinkler heads. It was based on installing a sprinkler system to meet a code.” Vice-president Pinkham of respondent corporation similarly testified that the estimator will base his estimate upon the plan that will “set forth piping and other component parts, including sprinkler heads, in accordance with the standard methods...”

In view of this testimony, we cannot hold, as appellants argue, that “plaintiff’s agent must have known”

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Bluebook (online)
182 Cal. App. 2d 564, 6 Cal. Rptr. 197, 1960 Cal. App. LEXIS 2147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-viking-sprinkler-co-v-cheney-calctapp-1960.