Church of the Holy Spirit v. Bevco, Inc.

338 N.W.2d 601, 215 Neb. 299, 1983 Neb. LEXIS 1273
CourtNebraska Supreme Court
DecidedSeptember 23, 1983
Docket82-534
StatusPublished
Cited by40 cases

This text of 338 N.W.2d 601 (Church of the Holy Spirit v. Bevco, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church of the Holy Spirit v. Bevco, Inc., 338 N.W.2d 601, 215 Neb. 299, 1983 Neb. LEXIS 1273 (Neb. 1983).

Opinion

Shanahan, J.

The Church of the Holy Spirit (Church) sued its contractor, Bevco, Inc. (Bevco), and Bevco’s bonding company, Fidelity and Deposit Company of Maryland (Fidelity), for damages from breach of a construction contract and performance bond, i.e., faulty painting of the Church’s parish center. Bevco filed a third-party action against its subcontractor, *301 Universal Terrazzo & Tile Co. (Universal), which had painted the building’s exterior. Bevco counterclaimed against the Church for payment of services rendered under the contract. Universal counterclaimed against Bevco for payment of services rendered under the subcontract. We .affirm in part, reverse in part, and remand with directions.

In 1976 the Church entered a written contract with Bevco for construction of a parish center. Bevco subcontracted the exterior painting to Universal for $6,276. This written contract between Bevco and Universal contained: ‘‘X. To be bound to the Contractor by the terms of the general conditions of the specifications and addenda, and to conform to and comply with the drawings and specifications and addenda, and to assume toward the Contractor all the obligations and responsibilities that the Contractor assumes in and by the aforesaid documents toward the Owner, in so far as they are applicable to this particular sub-contract”; ‘‘XIV. To guarantee his work against all defects of materials or workmanship, as called for in the plans, specifications and addenda, or if no guarantee is called for, then for a period of one year from the date of completion of the work covered by this agreement”; and ‘‘Payment to the Subcontractor shall be made propmtly [sic] after the Contractor is paid by the owner.”

John Tilly, architect for the Church, inspected the work of the contractors. Between November 11 and December 16, 1977, Universal applied the initial exterior coating of Deseo Tonecrete. According to manufacturer’s specifications, Deseo Tonecrete should be applied and allowed to cure at a minimum temperature of 40° Fahrenheit and the backing of such application should have a maximum of 16-percent moisture content. Universal painted on some days when the temperature was less than 40° Fahrenheit and on other days when it rained or snowed. On December 13 Tilly discovered that Universal was applying the incorrect color of paint and *302 ordered the painting stopped. It was too late in the year to repaint, and the building’s expansion control joints remained open during the winter.

The Church selected another color of paint in May 1978. Universal finished applying the new paint in August, and later in August Tilly rejected Universal’s work because there were “color variations” and “bleached-out” areas. To prevent the paint’s cracking around expansion control joints, Tilly ordered removal of caulking from those joints in October. In November the Church selected transparent sealer, which Universal later applied in May 1979. Because Universal’s application of the sealer was not uniform, Tilly rejected that work. In the fall of 1979 Universal said it would not correct the exterior sealer-coating. Between the fall of 1979 and January 1980 the exterior paint peeled and deteriorated. Such condition has never been corrected.

In January 1981 the Church sued Bevco and alleged Bevco’s breach of contract consisted of “improper exterior wall coating and caulking resulting in lack of uniformity in color, thickness and texture, discoloration, cracking, peeling . . . .” Bevco responded by filing an answer admitting the construction contract but generally denying any breach of contract. With its answer Bevco filed a counterclaim against the Church, seeking $16,750 in payment for services rendered under the contract. Bevco then filed a third-party action against Universal, alleging the provisions of paragraphs X and XIV of the subcontract, and further alleging that Universal was liable for any faulty painting. In the third-party action Universal filed an answer containing only a general denial, and also filed a counterclaim against Bevco for payment under the subcontract in the amount of $6,276. Neither Bevco nor Universal raised any affirmative defense regarding the Church’s claim for faulty painting.

Tilly, the architect, testified that he did not know the cause of the paint’s peeling. The Church also *303 called an expert witness, painter Leroy Gustafson, who testified that the cost of correcting the condition of the painting was $29,117. Gustafson further testified that moisture entering the uncaulked expansion joints could have caused the poor condition of the painting. At the conclusion of the Church’s case Bevco and Universal separately moved to dismiss the Church’s claim for faulty workmanship. These motions were overruled.

Bevco called a witness who testified that Universal initially applied the paint when temperatures were below and moisture levels were above the manufacturer’s specifications. According to Bevco’s witness, Universal’s failure to comply with the manufacturer’s specifications caused the paint to peel. On account of such condition the Church did not accept the painting and did not pay Bevco. At the conclusion of Bevco’s case Universal moved for a directed verdict on Bevco’s third-party complaint because Bevco had not paid for the subcontracted painting. The trial court overruled the motion.

During Universal’s case in chief, witnesses described the manner of application and the subsequent condition of the paint on the parish center. Universal introduced the manufacturer’s written instructions for application of the paint used. At the close of all the evidence Universal again asked dismissal of Bevco’s third-party complaint. The trial court overruled Universal’s motion regarding Bevco. Then both Bevco and Universal renewed their motions to dismiss the Church’s action. The trial court overruled these motions.

The trial court instructed the jury: “Before third-party plaintiff Bevco, Inc. can recover on its Third-Party Petition against third-party defendant Universal Terrazzo and Tile Co., it must first be determined by the jury that the plaintiff is entitled to recover against Bevco, Inc.,” and that Bevco must prove the “amount of damages sustained by Bevco” as a result of any breach of the subcontract by Uni *304 versal. The court further instructed: “If you find for Bevco on its Third-Party Petition against Universal, it will be your duty to award such damages as will fairly and reasonably, but not excessively, compensate Bevco for damages which it has sustained. The measure of damages is the amount of recovery that is awarded to plaintiff in its Petition against the defendant Bevco for the failure to properly apply the wall covering, if in fact you find such amount is owing.” Bevco had requested and the court refused an instruction which included: “[I]f you find that the damages suffered by the Church were caused by the work performed by Universal. . . then you must find Universal liable to Bevco for such damage.”

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Cite This Page — Counsel Stack

Bluebook (online)
338 N.W.2d 601, 215 Neb. 299, 1983 Neb. LEXIS 1273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/church-of-the-holy-spirit-v-bevco-inc-neb-1983.