Chaves v. Johnson

335 S.E.2d 97, 230 Va. 112, 1985 Va. LEXIS 258
CourtSupreme Court of Virginia
DecidedSeptember 6, 1985
DocketRecord 821206
StatusPublished
Cited by275 cases

This text of 335 S.E.2d 97 (Chaves v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chaves v. Johnson, 335 S.E.2d 97, 230 Va. 112, 1985 Va. LEXIS 258 (Va. 1985).

Opinions

RUSSELL, J.,

delivered the opinion of the Court.

This is an action for damages based upon theories of defamation and tortious interference with contract rights. The jury awarded damages to the plaintiff on both theories. The trial court set the verdict aside and entered judgment for the defendant. We granted the plaintiff an appeal.

Juan O. Chaves is a licensed architect practicing in the Fredericksburg area. In September 1978, after soliciting bids from architects, the City of Fredericksburg awarded him a contract for architectural services. The contract provided that Chaves would make a study of the City’s governmental space needs, would review the availability of existing properties to meet those needs, and would render complete architectural services with respect to additional construction work desired by the City. His fee was to be $3500 for the space study and 10% of construction costs for new construction. The contract was not specific as to the new construction desired, but at the time of its execution the City contemplated the renovation and conversion of an existing Post Office Building on Princess Anne Street into a new City Hall. Chaves was directed to develop a schematic design and a cost estimate for the project.

Chaves’ cost estimate, submitted in April 1979, was for $723,720, plus his fee of $72,372, plus an allowance of $100,000 for furniture. The City Council members had contemplated spending less than $275,000 on the project. Chaves informed the City Council, “This is what you tell me you need. It’s going to cost way in excess of what you want. Please tell me what to do.” The Public Works Committee decided the cost of renovating the Post Office was too high and asked Chaves to investigate alternatives. He did a study of a potential new City Hall to be built on Caroline Street. Chaves submitted a plan for that project in June 1979.

H. C. Johnson, Jr., was another licensed architect practicing in the Fredericksburg area. He had submitted a competing bid for the City’s Architectural Services Contract, quoting a lower fee, and was annoyed when the award was made to Chaves. Johnson testified:

[115]*115It was important to me to let City Council know that I felt it was a reflection on me, and a reflection on my professional ability, and a reflection on my professional standing in the community, that it became public knowledge that they had by-passed me, they have not considered my proposal, they have hired somebody who does not have the experience that I have had; and at the same time, pay him fifty percent more. Now, that’s got to tell somebody something.

On July 23, 1979, while the City Council was at an impasse concerning the cost of a new City Hall, Johnson wrote the following letter to the City Council:

July 23, 1979
Fredericksburg City Council
Fredericksburg, Virginia
Re: Proposed City Hall Architectural Project
Members of Council:
Concerning the proposed City Hall Architectural Project. Over a prolonged period of time since Council selected an Architect for the above project it has come to my attention that members of Council did not review, or did not have, all relevant information when making the decision.
If having been aware of the facts it seems unreasonable to me that Council would retain an Architect who has had no prior experience in this type of project and agree to pay an Architectural fee that is over 50% more than what could be considered a reasonable fee.
I have been told by members of Council that they have never seen the proposal that I submitted, in response to Mr. Funk’s request, and were not aware that I was really interested in the project.
I have also been told that a member of Council told other members of Council that I was too busy to work on the project. This is absolutely not true. Had I been too busy I would [116]*116not have submitted a proposal or told Mr. Funk, or stated in my proposal, that I was extremely interested in the project.
In view of the fact that I am a registered Architect, a permanent resident of the area, have maintained an office in the City for thirteen years and have paid many thousands of dollars to the City Treasurer in the form of Business License Tax, and have had as much experience as any Architect in the State with respect to this type of project, have submitted a reasonable fee schedule and have expressed a sincere desire to be considered for the project, it seems a considerable reflection on my professional reputation, as well as questionable judgement on Council’s part, to retain an Architect of no past experience and agree to pay him an unjustifiably high fee.
Because of my failure to request a proper interview, which I had assumed would be an appropriate formality, at the time of the original architectural selection concerning the Post Office I do not necessarily feel that I am entitled to further consideration concerning that particular project, even though I feel that Council did not give my proposal fair and impartial consideration.
However, if it is Council’s intention to consider a new City Hall at any location other than the Post Office I would at this time request that my original proposal be reviewed and reconsidered and a new architectural contract be awarded based on the requirements of the new project and the merits of those submitting proposals.
Further, if it is Council’s intention to accept and review unsolicited architectural concepts for a new City Hall I would also appreciate some consideration with respect to such a presentation.
If you have not seen my original proposal I have enclosed a copy for your review. Of considerable importance, I feel, is the fact that I stated I was extremely interested in the project, that my fee in the $700,000.00 to $800,000.00 range would have been 6.5% of the construction cost, and that a study and determination of space needs was a part of my basic fee. If you also review the other proposals submitted and the contract that was eventually entered into by the City [117]*117it is clear that all facts were not considered when a decision was reached. It seems to me that on a project of this type the public interest is being poorly served if members of Council do not review all information that is readily available to them when making a decision involving hundreds of thousand (possibly millions) of dollars, and as a result select the person or firm who is readily available, is best qualified, and proposes to do the work for the most reasonable fee.
I ask only that all relevant facts and information receive fair and impartial consideration.
Sincerely,
/s/ H. C. Johnson, Jr. Architect
Copy to: Mr. John Nolan City Manager

Johnson hand delivered a copy of this letter to each council member, accompanied by a copy of his fee schedule and a list of his professional qualifications.

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Bluebook (online)
335 S.E.2d 97, 230 Va. 112, 1985 Va. LEXIS 258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chaves-v-johnson-va-1985.