Chester R. Pyle Co. v. Fossler

252 P. 599, 200 Cal. 204, 1926 Cal. LEXIS 229
CourtCalifornia Supreme Court
DecidedDecember 31, 1926
DocketDocket No. L.A. 7551.
StatusPublished
Cited by5 cases

This text of 252 P. 599 (Chester R. Pyle Co. v. Fossler) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chester R. Pyle Co. v. Fossler, 252 P. 599, 200 Cal. 204, 1926 Cal. LEXIS 229 (Cal. 1926).

Opinion

WASTE, C. J.

—Plaintiff brought an action to foreclose a written contract in the nature of a mortgage for the construction of a building for the defendants and respondents. Prior to the commencement of the action, defendants made *205 an offer in writing to pay plaintiff the sum of $1,000, in addition to the sum of $2,500 theretofore paid, in satisfaction of any and all claims under the contract. The offer, accompanied by a sufficient tender, was refused, and the defendants subsequently paid the money into court. The trial court, by its judgment, decreed that plaintiff take nothing by the action, save and except the sum of $1,000, and that the defendants recover their costs. From this judgment the plaintiff appealed, citing insufficiency of the evidence, lack of proper findings, and errors of law occurring at the trial.

The appellant is a corporation carrying on a general contracting and building business. During the year 1918 the defendants, a mother and four daughters, sold their home in Nebraska and came to California, the mother, Mrs. Kate Fossler, about seventy-five years of age, and ill and weak, and two daughters, planning to live here. They had received $5,000 from the sale of the Nebraska property, which was all the money they had. With this modest amount to invest, they sought to buy a home in Pasadena. While in search of such an investment, and looking at houses already built, they came in contact with the appellant. One of its agents suggested to defendants that, instead of buying a home already constructed, they purchase a lot for $2,000, and erect thereon a house and garage similar to one already constructed with which they were familiar. He assured them that the desired structure could be built for a sum not to exceed $3,000. Acting on the advice of plaintiff, through its agent, the defendants purchased the lot, and agreed with the plaintiff that it should erect thereon a dwelling-house, garage, and other improvements “at a cost of approximately $3,000.”

A contract was thereupon prepared by the plaintiff and submitted to the defendants. It provided that whereas the defendants had agreed to hire, and contract with the plaintiff to erect a dwelling-house, garage, and other improvements, the defendants would furnish the money therefor, in specified payments, the plaintiff to furnish all things required to complete a “one-story dwelling including an attic, a garage and such other improvements” as might be ordered by the defendants, “according to plans and specifications *206 and drawings” to be prepared by the plaintiff, “and agreed upon, and when agreed upon to be signed and approved by at least three of the” defendants. The contract further provided that the defendants might, during the progress of the work, request alterations, additions to or omissions from the contract and plans and specifications, and also that, should the superintendent of construction order necessary changes or deviations, the same should in no way make void the contract, but any increased cost thereof should be added to the amount specified as the cost on which the compensation of the builder should be computed. By another stipulation, it was understood and agreed that the cost of the building and improvements ordered or contemplated in the contract and plans and specifications, or incurred by any changes made by the defendants, might be more than the amount specified in the contract, and, if so, the defendants should furnish the necessary money to complete the building, but the plaintiff should have the right to furnish any money at its option to construct and complete the improvements, all such amounts, so advanced, to be deemed secured by the contract, “as a lien on said premises in the nature of a mortgage.” In consideration for any advancements and for its services, plaintiff was to be paid a sum equal to ten per cent of the cost of the building and improvements.

When the contract was presented for signing, the defendants called attention to the fact that it contained no provision as to - the total maximum amount which the improvements would cost them, and did not provide that changes and alterations should be ordered in writing. The contract was thereupon taken away by plaintiff and when again presented contained the provision for the erection of “a dwelling-house and garage and other improvements at a cost of approximately $3000.00,” and that all changes and alterations should be ordered in writing. Not “knowing anything about contracts,” and desirous of being properly advised, the defendants requested the name of a lawyer, and were sent by plaintiff to its own attorney. The defendants did not know of the relation of the attorney to the plaintiff, and one of them went to him for advice. He advised that the contract “was all right,” but does not *207 appear to have had any other connection with the transaction in its inception.

In apparent performance of the contract executed by the parties, the plaintiff erected a dwelling-house and garage on the lot of the defendants, but departed widely from the plans and specifications first presented to the defendants, and demanded payment for the completed improvements' in the sum-of $12,118.39. The defendants claim that then, for the first time, they learned that they were not getting a house and garage at a cost of approximately $3,000. On this point the evidence is contradictory. Appellant’s superintendent of construction, who drew the plans and specifications, and who appears to have conducted most of the negotiations with the defendants, testified that he showed the defendants plans for a six-room frame house, and told them that it could be built for approximately $3,000; that prior to the signing of the written agreement no plans had been perfected and no specifications had been drawn; that plaintiff a week later submitted a pencil sketch of plans for a frame building, and he was told to prepare plans along the lines shown on it; that certain changes in the sketch were suggested by the defendants; plans and specifications were subsequently prepared by him; that he frequently talked with defendants during the construction, and told them “that changes would cost more money than what the contract called for.” In this connection, however, it must be borne in mind that the defendants were at all times planning and thinking in terms of improvements to cost approximately $3,000, all the money they had. They 'had been shown such a house by appellant’s superintendent. He prepared a pencil sketch, apparently of a house that could be erected for that sum. On the witness-stand he admitted that he gave defendants no figures regarding the cost of the house finally settled upon, and shown on the blue-prints furnished by him. There is evidence on the part of the defendants that when the changes from the pencil sketch were talked over, appellant’s superintendent assured the defendants that appellant had on hand some old or “left over material,” by the use of which the house finally decided upon could be built within the original estimate. The evidence is in sharp conflict as to what was said and done *208 Tby the parties in relation to changes made after the plans were signed, and during the progress of the work.

The findings appear to have been made largely in response to the issues raised by the third and special defense interposed by the defendants.

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Bluebook (online)
252 P. 599, 200 Cal. 204, 1926 Cal. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chester-r-pyle-co-v-fossler-cal-1926.