City of Crossett v. Pacific Buildings, Inc.

769 S.W.2d 730, 298 Ark. 520, 1989 Ark. LEXIS 216
CourtSupreme Court of Arkansas
DecidedMay 1, 1989
Docket88-286
StatusPublished
Cited by6 cases

This text of 769 S.W.2d 730 (City of Crossett v. Pacific Buildings, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Crossett v. Pacific Buildings, Inc., 769 S.W.2d 730, 298 Ark. 520, 1989 Ark. LEXIS 216 (Ark. 1989).

Opinions

Tom Glaze, Justice.

This is an appeal from the chancellor’s ruling ordering the City of Crossett to accept, maintain and operate the sewer system installed in the Woodlawn Subdivision. The city appeals, alleging seven points of error. We find no error and therefore affirm.

The Woodlawn Subdivision was the product of a joint venture between Southeast Properties and Real Estate and Pacific Buildings, Incorporated. These two companies used the name Woodlawn Development Company (Woodlawn) for their joint venture.1 Woodlawn employed the engineering firm of Marion Crist and Associates, which assisted in designing a plan for a 150 house subdivision. The Woodlawn developers met with the Crossett Sewer Commission, and on August 21, 1972, the Commission and its chairman introduced a proposal for the Woodlawn Subdivision to tie into the city’s sewer system. Woodlawn was to install the system, and the city was to maintain it. The Crossett City Council approved the proposal. After the city’s approval, Woodlawn obtained financing and hired Byron Jones to install the system. As the developers constructed and completed houses in the subdivision, they connected and tied the houses into the city’s water and sewer systems.

On March 18,1974, the city council changed its position and voted that Woodlawn must both install and maintain the sewer system. Robert Kennedy, a partner in Southeast Properties, testified that he was unaware of this change or the council’s meeting. It is conceded, however, that Woodlawn had been operating and maintaining the system since it was installed. Nonetheless, according to Kennedy, he first became aware of the city’s refusal to maintain the sewer system only when he received a complaint from the State Health Department in January of 1979. After learning of the city’s decision to require Woodlawn to maintain the system, Woodlawn met with the Crossett City Council on February 26, 1979. As a result of that meeting, the council passed a motion that it would accept the obligation to maintain and operate the sewer system if the city was furnished with written certification from Marion Crist and Associates that (1) the system was constructed according to the construction standards of the city or (2) the system now meets the construction standards of the city for a sanitary sewer system.

After two inspections by Robert Yeatman, an employee of Marion Crist, and the completion of recommended repair work, Yeatman, in a letter to the city dated October 20,1986, certified that Woodlawn’s sewer system was now in compliance with the city’s standards for sanitary sewerage facilities. However, on May 18,1987, the Crossett City Council still voted not to accept the system. Woodlawn (Pacific Buildings, Inc.) filed suit against the city asking for specific performance and mandatory relief requiring the city to accept, maintain and operate the sewer system. The city responded by denying Woodlawn’s claims and by raising the affirmative defenses of the statute of limitations, laches, waiver and estoppel. The city also claimed the chancery court had no jurisdiction to award the relief requested by Woodlawn. The trial court rejected all of the city’s claims and defenses and ordered the city to accept, maintain and operate Woodlawn’s system effective October 20,1986, the date Marion Crist certified the system.

We first dispose of the city’s jurisdiction argument when it claims the relief requested by Woodlawn is actually one of mandamus, which is not cognizable in chancery court. Although the city attempts to turn Woodlawn’s action into one of mandamus, we point out that from the very inception of this litigation, Woodlawn has sought to compel the city to specifically perform its agreement or commitment to accept and maintain Wood-lawn’s water and sewer system in accordance with the parties’ original agreement in 1972, and the more recent one, which resulted from their meeting on February 26, 1979. Specific performance is an equitable remedy which compels the performance of an agreement or contract on the precise terms agreed upon. McCoy Farms, Inc. v. J & M McKee, 263 Ark. 20, 563 S.W.2d 409 (1978). The chancery court in this cause clearly had the power to award the relief requested by Woodlawn.

We also find no merit in the city’s arguments that the trial court erred in holding the city’s defenses of statute of limitations, laches, waiver and estoppel did not bar Woodlawn’s action. The city argues eight years elapsed between the time it conditionally agreed to maintain Woodlawn’s system in February 1979, and when Woodlawn filed suit on August 12, 1987. The record, however, reflects the parties’ agreement never specified a time within which the conditions in the parties’ 1979 agreement were to be completed. While the law provides for the implication of a reasonable time for the condition to be performed, the evidence reveals that both parties worked together and with others in order to resolve the problems surrounding Woodlawn’s systems.2 The city council apparently remained dissatisfied but did not refuse the system until May 18, 1987 — after Woodlawn furnished the city the certification it requested. Woodlawn filed suit three months later. We believe the evidence clearly supports the chancellor’s decision that Woodlawn’s action was timely and did not prejudice the city’s position in this cause.

Although the city also argues waiver and estoppel, we believe much of the evidence already noted above runs contrary to those defenses, as well. The city argues Woodlawn waived its claim that the city should maintain and operate the system because Woodlawn had maintained it over long periods of times. Further, the city says Woodlawn should be estopped to assert its claim because Woodlawn failed to construct the system as designed or to city standards, and it failed to construct the number of houses originally specified. It also asserts Woodlawn knew the sewer system did not work from the time it was built until sometime, in 1984. Again, Woodlawn presented proof that it, the city and others were working towards the city assuming its obligation to maintain the subdivision’s sewer system — as the city first promised in 1972. While the record reflects this matter was often an on-again, off-again project, Woodlawn never abandoned its actions to get the city to maintain the system, and as is evidenced by the city’s actions in February 1979, the city continued to work with Woodlawn towards this end. The construction of the houses was to be performed in phases, and obviously their construction would in part be dependent upon the resolution of the differences between the city and Woodlawn over the sewer system.

The appellant next contends that the chancellor erred in finding that the Woodlawn sewer system met the city’s construction standards for sanitary sewer systems. We cannot agree. This court will reverse a chancellor’s finding only if it is clearly erroneous. ARCP Rule 52.

At the trial, Byron Jones, the contractor of the Woodlawn sewer system, testified that one four inch line ran from the main sewer line to a “Y” connector, which allowed lines from two houses to be attached. After hearing this testimony, Robert Yeatman testified on cross-examination that at the time he wrote the letter certifying that the sewer system met the city’s standards, he was unaware that the system had only one service connection for every two lots.

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Cite This Page — Counsel Stack

Bluebook (online)
769 S.W.2d 730, 298 Ark. 520, 1989 Ark. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-crossett-v-pacific-buildings-inc-ark-1989.