Campbell Construction Co. v. Barnhill Bros., Inc.

245 So. 2d 776, 1970 La. App. LEXIS 5175
CourtLouisiana Court of Appeal
DecidedJune 29, 1970
DocketNo. 11460
StatusPublished
Cited by1 cases

This text of 245 So. 2d 776 (Campbell Construction Co. v. Barnhill Bros., 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
Campbell Construction Co. v. Barnhill Bros., Inc., 245 So. 2d 776, 1970 La. App. LEXIS 5175 (La. Ct. App. 1970).

Opinions

DIXON, Judge.

The plaintiff, Campbell Construction Company, Inc., entered into a contract with the Louisiana Department of Highways to construct 6.33 miles of a four lane concrete highway. The project, located in Lafayette Parish, Louisiana, was known as the Billeaud-Lafayette Highway. This contract was made April 20, 1960, and signed May 19, 1960.

On May 20, 1960, the plaintiff entered into a subcontract with defendants, C. E. Williams Construction Company, Inc. and Barnhill Bros., Inc., to perform certain items of work which were included in the prime contract of Campbell Construction Company, Inc. Plaintiff alleges that the defendants failed to perform the work as directed by their subcontract and because of the failure it was required to complete [778]*778the work. Plaintiff instituted this action to recover the cost of completing the work which defendants had agreed to perform. Plaintiff alleges completion cost amounted to $57,269.38.

The defendant, Barnhill Bros., Inc., answered with a general denial of liability and reconvened for the sum of $2,379.59 which sum it alleged the plaintiff had retained on that portion of the contract which had been performed and which the plaintiff had failed and refused to pay the defendant, Barnhill Bros., Inc. The defendant, Barnhill Bros., Inc., then assuming the position of third party plaintiff, sought to make C. E. Williams Construction Company, Inc. third party defendant, based on the allegation that on or about April 3, 1961, it had entered into an agreement with the third party defendant to take over all responsibility for the completion of the work undertaken in the subcontract with the plaintiff. Barnhill alleged that it had been relieved of all obligation insofar as the contract with plaintiff was concerned, and that if a judgment should be rendered against it in favor of plaintiff, that it would be entitled to a judgment against the third party defendant, C. E. Williams Construction Company, Inc., for the amount of such judgment.

C. E. Williams Construction Company, Inc. denied in its answer that it was indebted to the plaintiff in any amount. It specifically denied that it breached its contract with plaintiff and that it was at any time placed in formal default. The defendant, C. E. Williams Construction Company, Inc., reconvened, alleging that the plaintiff had violated its contract with defendant and that it was entitled to recover the sum of $85,643.06 alleged to be due it under the terms of said contract. The plaintiff, in answer to the reconven-tional demand of the defendant, denied that it was indebted to the defendant in any amount.

There was judgment in favor of plaintiff and against the defendant, C. E. Williams Construction Company, Inc. for $2,-918.21. There was further judgment rejecting plaintiff’s demands against Barn-hill Bros., Inc. and rejecting Barnhill’s reconventional demand against the plaintiff Campbell. Campbell and Williams have appealed. Barnhill has neither appealed nor answered the appeal.

The contract discloses that the defendants agreed to furnish, at their expense, all the materials, labor, equipment, supplies and other items required to complete the work in its entirety. The plaintiff agreed to pay for the work performed at the prices set out in the contract, less 5i/2%, which it would retain for its own account. It was agreed that payments would be made monthly as partial estimate payments were made to plaintiff to be based on quantities approved in such partial estimates. It was stipulated that 5% of the earnings of the defendants was to be retained by plaintiff pending completion and acceptance by the Department of Highways. The defendants were not required to give a bond nor was there a penal clause in the contract.

The defendants moved on the project and began their work in June, 1960. They performed the work until on or about March 20, 1961, when Barnhill decided to discontinue the road construction business. On or about April 3, 1961, Barnhill reached an agreement with C. E. Williams Construction Company, Inc. that the latter would assume all responsibility for the completion of the contract with the plaintiff. Williams continued the work. The plaintiff, Campbell Construction Company, Inc., was not a party to the agreement between Barnhill and Williams. To the contrary, the plaintiff wrote a joint letter to defendants on April 14, 1961 in which it acknowledged the agreement between the defendants, but with the understanding that the responsibility and terms of the subcontract remained as originally executed.

It appears that Williams began to experience financial difficulties in August [779]*779of 1961, and the work proceeded in a somewhat unsatisfactory manner. On October 20, 1961, the plaintiff notified Williams that unless it improved the work immediately it would be necessary for it to place equipment and personnel on the job as was necessary to proceed with the completion of the items undertaken by it, and that it would charge all cost for such work to defendants. Shortly thereafter plaintiff undertook to assist Williams in the performance of the work, and advanced payroll funds as needed by the defendant, Williams. The performance of the work continued to deteriorate in spite of the assistance of the plaintiff to the defendant and plaintiff’s repeated warnings that the work was being delayed and generally performed in an unsatisfactory manner.

The plaintiff contended that the preparation of the subgrade to proper specifications, as fixed by the Highway Department, had not been brought to the required tolerance. It is contended that Williams only completed 2.14 miles of the subgrade to proper tolerance, after which it was necessary for plaintiff to complete the remainder of such work.

It is contended by the plaintiff that Williams failed to compact sand-shell on the shoulders of the project as provided for in the specifications of the Highway Department. Another item plaintiff complained of was the failure of Williams to construct the Airport Road. Plaintiff contended that it was entitled to a credit for dressing the slopes, and cleaning up the project for final inspection.

On May 28, 1962 the plaintiff placed Williams in default. Shortly thereafter plaintiff moved its equipment and personnel on the project and began performing the work that Williams had failed to complete. Williams continued with some of its equipment and personnel on the job until on or about July 12, 1962 when it removed all of its employees and equipment from the project. Thereafter, the plaintiff completed the project so that it was eventually approved and accepted by the Highway Department. Plaintiff contended that after making all deductions and credits to defendants they owed plaintiff $57,269.38 for completing the project.

The defendants’ contention is that they are entitled to be paid the contract price for the work actually performed by them and that they should not be charged the amount of the expenses incurred by the plaintiff in excess of the contract price. Plaintiff insists that it is entitled to be reimbursed by defendants for the actual expense incurred by it in completing that part of the project assigned to defendants, less the credits to which defendants are legally entitled.

Contractor’s liability for noncompliance is fixed by Article 2769 of the Louisiana Civil Code, which states:

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Bluebook (online)
245 So. 2d 776, 1970 La. App. LEXIS 5175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-construction-co-v-barnhill-bros-inc-lactapp-1970.