Chatham Super Markets, Inc. v. Ajax Asphalt Paving, Inc.

121 N.W.2d 836, 370 Mich. 334
CourtMichigan Supreme Court
DecidedJune 3, 1963
DocketCalendar 5, Docket 49,905
StatusPublished
Cited by16 cases

This text of 121 N.W.2d 836 (Chatham Super Markets, Inc. v. Ajax Asphalt Paving, Inc.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chatham Super Markets, Inc. v. Ajax Asphalt Paving, Inc., 121 N.W.2d 836, 370 Mich. 334 (Mich. 1963).

Opinion

Black, J.

Plaintiff contracted in writing with the Shefman Construction Company “to erect a supermarket building and make parking improvements” on plaintiff’s then vacant land in East Detroit. The covenants included one for construction and paving, by Shefman according to detailed plans and speci- *336 fixations, of a large parking area adjacent to the building. Shefman subcontracted the parking area pavement job to defendant. The subbase and paving done by defendant turned out to be wholly defective with result that plaintiff was compelled to reconstruct and repave at a cost of $16,770.

Plaintiff sued the defendant subcontractor for the loss, alleging among other things:

“27. That under the contract between Shefman and the defendant, the defendant agreed and undertook to be obligated directly to plaintiff to duly perform all of the work for the blacktop paving in accordance with the plans and specifications prepared by Louis G-. Redstone, an architect, Job No. 1518, and to relieve and discharge Shefman from its (Shefman’s) contractual duty to plaintiff to do said blacktop paving work, et cetera. * * *

“29. That plaintiff is a third-party creditor beneficiary of defendant’s undertakings and promises, guarantees, and warranties by virtue of the provisions of PA 1937, No 296 (CL 1948, § 691.541 et seq. [Stat Ann 1953 Rev § 26.1231 et seg.]).” *

Defendant countered by motion to dismiss, claiming that plaintiff’s declaration as amended failed to state a cause for the reason “That there is no privity of contract between the plaintiff and the defendant.” To its motion to dismiss defendant attached an affidavit of the president of the defendant corporation averring “personal knowledge of all of the facts stated herein; that he was the person who conducted the negotiations with Shefman Construction Company, * * * and that the only contract, written or oral entered into between the defendant and the Shefman Construction Company is the [one] dated May 21, 1956, a copy of which is herewith attached and made a part of this affidavit.”

*337 The motion to dismiss provoked several hearings, during which the following colloquy occurred:

“The Court: How can the plaintiff in this case allege the specific provisions of an oral contract between the general contractor and the defendant here?

“It seems to me that all the plaintiff has done here is to provide allegations to shore up the deficiencies previously pointed out by the court’s opinion, when it dismissed the original declaration filed herein.

“Mr. Sommers: We propose to prove this by testimony of Shefman himself.

“The Court: Does he have an affidavit, by any chance, attached to this?

“Mr. Sommers: No, he doesn’t, Your Plonor.

“The Court: Have you taken his deposition?

“Mr. Sommers: We haven’t had a chance to. That is what I have been arguing. We should be given a chance to do that. * # *

“The Court: Let me put it to you in this way. Is there anything in here indicating that this is Shef-man’s understanding of what was being done?

“Mr. Sommers: Yes, paragraph 15 of our latest declaration.

“The Court: What I mean is this. There is no affidavit, for example, from Mr. Shefman.

“Mr. Sommers: This doesn’t have to he a sworn pleading, your Honor.

“The Court: Well, here, by leave of the court, you have been permitted to file after the court decided the motion. You have been permitted to file a second amended declaration to see if you could come up with facts to suggest to this court that there is some merit in your position, that if there were a trial you could produce testimony proving the allegations which you have made here orally and in writing. * * *

“We have actually 3 declarations here, plus a lot of intervening conversation and representations, *338 and the court has, for example, looked at the only-writing that I know of, and apparently that you know that exists between the general contractor Shefman and the defendant in this case. And the language of that short, brief letter is anything but what is represented here in your declaration.”

Defendant’s motion was ultimately granted and plaintiff has appealed. The briefs present an interesting discussion of the interpretation and application of the third-party beneficiary statute (CL 1948, § 691.541 et seq. [Stat Ann 1953 Rev § 26.1231 et seq.]); a discussion which may or may not prove decisive when the essential facts are established (a) by deposition or depositions as suggested by plaintiff’s counsel (see colloquy above) or, (b) by motion or motions for summary judgment under GCR 1963, 117, or (c) trial of the cause on complete pleading by the parties.

The right of motion to dismiss, assigning no cause alleged, seems surely as having been misapprehended and misapplied here. That the movant has attached to its motion the mentioned affidavit is presently immaterial. When the case is tried, or when the factual issue made by such affidavit is presented on motion for summary judgment, that will be the occasion for proof if any countering what the affiant has alleged. That too will be the occasion for proof if any that the original writing was validly modified, or even novated, by subsequent oral or written agreement of the parties thereto or, perchance, by subsequent oral or written agreement of the present litigant parties. Building and construction contracts notoriously bring about subsequent alterations, modifications, and novations as the work progresses. The courts are regularly called upon to settle factual disputes which arise from mutual undertaking's, real or otherwise, which are said to have come to express or implied agreement *339 after signature of the master contract and commencement of work thereunder. As said recently by Judge Goodrich (Frommeyer v. L. & R. Construction Co. [CCA 3], 261 F2d 879, 882 [69 ALR2d 1040]):

“No one doubts that a contract, even a written contract, may be rescinded or may he modified subsequently. Such modifications may be in writing or oral. The district court was cited to cases, which have been brought to our attention also, in which a contractor, or subcontractor, confronting new and unexpected situations has been found to have made a new contract with the promisee on terms more favorable to himself. E.g., Swartz v. Lieberman (1948), 323 Mass 109 (80 NE2d 5, 12 ALR2d 75); Annotation 12 ALR2d 78 (1950).” *

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Bluebook (online)
121 N.W.2d 836, 370 Mich. 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chatham-super-markets-inc-v-ajax-asphalt-paving-inc-mich-1963.