Charleston Lumber Co. v. Friedman

61 S.E. 815, 64 W. Va. 151, 1908 W. Va. LEXIS 26
CourtWest Virginia Supreme Court
DecidedMarch 24, 1908
StatusPublished
Cited by32 cases

This text of 61 S.E. 815 (Charleston Lumber Co. v. Friedman) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charleston Lumber Co. v. Friedman, 61 S.E. 815, 64 W. Va. 151, 1908 W. Va. LEXIS 26 (W. Va. 1908).

Opinion

Brannon, Judge:

Jacob Friedman owned a lot on the west side of Capitol street, in the city of Charleston, and upon it, under sealed contract with A. F. Withrow & Co. as building contractors, he erected a store building. G. W. Jobe made a contract with Friedman for putting shelves, counters and casings in the building, and other interior work, and the Charleston Lumber Company furnished Jobe materials [153]*153therefor, and it filed a lien for such furnished materials against said lot. A. F. Withrow & Co., the contractors furnishing materials for and erecting said building, also filed a mechanic’s lien against said lot. The Charleston Lumber Company brought a suit in equity to enforce its lien against said lot, making A. F. Withrow & Co., as •owners of their mechanic’s liens, parties, setting up that A. F. Withrow & Co. held such lien. A. F. Withrow & Co. filed their answer as a cross-bill setting up their demand and lien, and as making its enforcement against Friedman’s lot. Friedman filed an answer, in which he claimed a deduction from the demand of A. F. Withrow & Co. for liquidated damages at ten dollars per day for delay, beyond the time limited for the completion of the building and other deductions. The case was referred to a commissioner to report upon the controversy, and he reported in favor of A. F. Withrow & Co. for their full demand, without any •deduction for such liquidated damages or other deduction, and the court confirmed the report, decreed the full demands of the Charleston Lumber Company and A. F. With-row & Co., and directed the lot to be sold for payment of their liens, and Friedman appeals as to the allowance of the -demand of A. F. Withrow & Co. Thus the demand of the Charleston Lumber Compay is out of the cáse.

Friedman claims that he is entitled to deduct from the contract sum for the erection of the building at ten dollars per day for 121 days delay, beyond the time stipulated for the completion of the building, by reason of the following clause in the written contract: “Second, Should the said Contractor fail to finish and complete the said works, at or before the time set forth. shall- pay to the said Owner by way of liquidated damages, the sum of 10 Dollars per diem for each and every day thereafter that the said works remain incomplete and unfinished, unless the time be extended as hereinafter provided.” The contract dates 2*1 July, 1904, and provides that the contractors, A. F. Withrow & Co., “shall and will complete and finish on or before the 1st day of December, 1904, or in four months, all the works, buildings and structures herein provided for.” The building was not completed until April 1, 1905.

[154]*154A question, as a first matter, is raised as to the right to insert by oral evidence the word “ they” in the blank found in the contract. No evidence is needed to correct this clerical error, as it is self-correctible. Anybody would say that it was the contractors who were to pay the ten dollars per day for delay in completion, because it speaks that it is for the failure of duty by the contractors that the “owner” was to receive the ten dollars per day damages. It is not an ambiguity, patent or latent, arising from the words; but is an omission of a word, by clerical mistake. The oral evidence to insert “they” does not add to or contradict. It simply supplies an omission. “A written contract should be construed according to the obvious intention of the parties, notwithstanding clerical errors or omissions therein which can be corrected by perusing the whole instrument. ” Monmouth &c. v. Wallace &c., 39 Am. St. R. 626.

A vital question in the case is this: Is the provision for payment of ten dollars per day by the contractors to Friedman for delay over time in the completion of the work to be regarded'as liquidated damages or a penalty? If a penalty, equity will not enforce it; if damages liquidated by the contract, equity will enforce it. 2 Page * on Contracts, sec. 1167 says: “A contract for a penalty is an agreement to pay a stipulated sum in case of default, intended to coerce performance, to punish default, or to secure payment of the actual damages. A contract for liquidated damages is a contract by which the parties in advance of breach fix the amount of damages which will result therefrom, and agree upon its payment.” The intention governs. We find in 13 Cya 90 this statement: “The contract is to govern; and the true question is, What was the contract? Whether it was folly or wisdom for the contracting parties thus to bind themselves is of no consequence if the intention is clear. If there be no fraud, circumvention or illegality in the case the court is bound to enforce the agreement.” In Stony Creek L. Co. v. Fields & Co., 102 Va. 1, the law is stated as follows: “ Whether a given sum agreed to be paid in case of the breach of a contract is to be regarded as liquidated damages or as a penalty must depend on- the facts of the particular case, regardless of the name by which the parties have called it. If the contract is for the doing of a single [155]*155specific act, and there is no adequate means of determining from the contract or otherwise the precise damage which may result from its breach, the sum agreed will generally be regarded as liquidated damages and not a penalty; but, when from the nature of the contract or the work to be performed it is not difficult or impossible to ascertain the damages resulting from a breach, the sum stipulated will generally be regarded as a penalty.” In Mathews v. Sharp, 99 Pa. St. 560, the law is stated as follows: “In order to determine whether the sum named in a contract as a forfeiture for non-compliance is intended as a penalty or as liquidated damages the whole contract must be looked to. The subject matter, the ease or difficulty of' measuring the breach in damages and the magnitude of the stipulated sum — not only as compared with the value of the subject of the contract — but in proportion to the probable consequence of the breach.” When damages from breach of contract are “uncertain in amount, and not readily susceptible of proof, then if the parties have expressly agreed upon, a sum as the measure of compensation for the breach, and that sum is not disproportionate to the presumable loss, it maybe recovered as liquidated damages. Stipulations for specific or liquidated damages on breach of a contract to build within a limited time are enforceable. ” Monmouth Park v. Wallace Iron Works, 53 N. J. L., 125, 39 Am. St. R. 626. “Because of the difficulty of ascertaining with certainty the damages arising from the failure to complete working contracts within the stipulated time, the parties to such contracts frequently provide for the payment of a specific amount as liquidated damages for failure to perforin the contract in time, and the courts have unhesitatingly upheld and enforced such provisions.” 30 Am. & Eng. Ency. L. (2 ed.) 1263. “ Where the damages are uncertain in their nature, difficult to ascertain or impossible to be estimated with certainty, by reference to any pecuniary standard, and where the parties themselves are more intimately acquainted with all the particular circumstances, and are therefore better able to compute the actual or probable damages, it has been the rule to allow the parties to ascertain for themselves, and provide in the agreement itself the amount of damages which shall be [156]*156paid.” 13 Cyc. 97.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stonebraker v. Zinn
286 S.E.2d 911 (West Virginia Supreme Court, 1982)
Mundy v. Arcuri
267 S.E.2d 454 (West Virginia Supreme Court, 1980)
Wetzel County Savings & Loan Co. v. Stern Bros., Inc.
195 S.E.2d 732 (West Virginia Supreme Court, 1973)
State Ex Rel. Coral Pools, Inc. v. Knapp
131 S.E.2d 81 (West Virginia Supreme Court, 1963)
Preston County Coke Co. v. Preston County Light & Power Co.
119 S.E.2d 420 (West Virginia Supreme Court, 1961)
Consumer Credit Co. of Waynesburg v. Bowers
104 S.E.2d 869 (West Virginia Supreme Court, 1958)
CONSUMER CREDIT COMPANY OF WAYNESBURG v. Bowers
104 S.E.2d 869 (West Virginia Supreme Court, 1958)
Bischoff v. Francesa
56 S.E.2d 865 (West Virginia Supreme Court, 1949)
Stratton & Terstegge Co. v. Criswell
160 S.W.2d 137 (Court of Appeals of Kentucky (pre-1976), 1942)
Peerless Department Stores, Inc. v. George M. Snook Co.
15 S.E.2d 169 (West Virginia Supreme Court, 1941)
Henderson Development Co. v. United Fuel Gas Co.
3 S.E.2d 217 (West Virginia Supreme Court, 1939)
Henry v. Seiberling Rubber Co.
96 S.W.2d 590 (Court of Appeals of Kentucky (pre-1976), 1936)
Wade v. Mutual Benefit Health & Accident Ass'n
177 S.E. 611 (West Virginia Supreme Court, 1934)
Georgeton v. Reynolds
170 S.E. 741 (Supreme Court of Virginia, 1933)
Hamilton v. Republic Casualty Co.
135 S.E. 259 (West Virginia Supreme Court, 1926)
Detroit Edison Co. v. Wyatt Coal Co.
1 F.2d 788 (Fourth Circuit, 1924)
Leigland v. Rundle Land & Abstract Co.
208 P. 1075 (Montana Supreme Court, 1922)
Keller v. Washington
98 S.E. 880 (West Virginia Supreme Court, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
61 S.E. 815, 64 W. Va. 151, 1908 W. Va. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charleston-lumber-co-v-friedman-wva-1908.