Complete Elec. Co., Inc. v. LIBERTY NAT. BANK & TRUST COMPANY

530 N.E.2d 1216, 1988 Ind. App. LEXIS 993, 1988 WL 130742
CourtIndiana Court of Appeals
DecidedDecember 6, 1988
Docket10A01-8805-CV-144
StatusPublished
Cited by3 cases

This text of 530 N.E.2d 1216 (Complete Elec. Co., Inc. v. LIBERTY NAT. BANK & TRUST COMPANY) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Complete Elec. Co., Inc. v. LIBERTY NAT. BANK & TRUST COMPANY, 530 N.E.2d 1216, 1988 Ind. App. LEXIS 993, 1988 WL 130742 (Ind. Ct. App. 1988).

Opinion

NEAL, Judge.

STATEMENT OF THE CASE

This appeal involves a series of suits and countersuits relating to a construction project, mortgages, mechanics liens, and breaches of contract.

We affirm in part and reverse in part.

STATEMENT OF THE FACTS

The facts most favorable to support the judgment are as follows. Complete Electric Company, Inc. (Complete) entered into a written contract with Sodrel Truck Lines, Inc. (Sodrel) on July 23,1984, to construct a new office and service building for Sodrel. The contract provided that Complete would furnish all labor and material for the project for a fixed price of $85,118. Because of the creation of a number of change orders, some oral and some written, the parties, in February of 1985, altered the agreement to include all change orders already made, and those contemplated, escalating the contract price to $126,379.38. Reflecting this agreement, Complete sent a resume to Sodrel on March 15, 1985, which stated that previous payments of $88,-390.52 had been made and $28,508.36 was due. A letter accompanied the billing which stated that there remained $10,648 of labor to be completed. Because of the existence of a materialman’s claim held by Eckart Supply Company (Eckart), Sodrel issued a check to Complete and Eckart for the $28,508 billing and delivered it to Complete. However, Complete forged Eckart’s endorsement on the check and kept all the proceeds.

Complete abandoned the contract on May 17,1985, after which Sodrel had it completed by others. Thereafter, Complete billed Sodrel for $62,144.26. When Sodrel re *1218 fused to pay it, Complete filed a mechanics lien, and this action to foreclose the lien followed. Other lienholders and mortgagees, including Eckart, were made parties in order to answer for their interest. Other than Eckart, however, those lienholders’ interests form no part of this appeal. Ec-kart filed a cross-claim against Sodrel on its mechanics lien for materials. Sodrel filed a counterclaim against Complete for breach of contract and for indemnity in the event it became liable for Eckart’s claim. The parties filed a pre-trial stipulation that Eckart’s lien was valid and that the material bill was $13,513. Evidence at the trial reflected that it had not been paid. Post-trial documents reflected that after judgment was entered against it, Sodrel paid the Eckart lien.

In its action, despite documents it generated reflecting a contrary state of facts, Complete claimed that its contract was a cost-plus arrangement, a fact that Sodrel denied. Complete claims it was entitled to material and labor costs of $142,844.92, plus profit and overhead of $37,853.90, or a total contract price of $180,698.82. After a bench trial, the trial court entered its judgment awarding Complete damages in the sum of $549.33 and attorney fees in the amount of $11,214.40. The court found against Sodrel on its counterclaim for breach of contract against Complete, awarded Eckhart $16,319.40 for its lien plus attorney fees, and entered judgment for Sodrel against Complete for indemnification of the Eckart judgment.

ISSUES

Both Complete and Sodrel filed motions to correct error and both appeal. Complete presents three issues, which restated by us are as follows:

I.Whether the trial court erred in determining the amount of damages to award Complete.
II.Whether the trial court erred in awarding Sodrel judgment for indemnification of the Eckhart lien.
III.Whether the trial court erred in determining the amount of attorney fees Complete was entitled to recover.

Sodrel presents a single issue:

I. Whether the trial court erred in awarding Complete any attorney fees.

We will discuss this issue and Complete’s third issue together.

DISCUSSION AND DECISION

Standard of Review

This court does not weigh the evidence or determine the credibility of witnesses. Lawrence County Commissioners v. Chorely (1979), Ind.App., 398 N.E.2d 694. We consider only the evidence most favorable to support the judgment. Fort Wayne National Bank v. Scher (1981), Ind.App., 419 N.E.2d 1308. Only when the evidence is without conflict and leads to but one conclusion and the fact finder reaches the opposite conclusion will this court disturb the decision. Hoosier Insurance Company, Inc. v. Mangino (1981), Ind.App., 419 N.E.2d 978. Neither party requested special findings of fact, and none were made. In the absence of such, the ruling of the trial court is presumed to be based on findings supported by the evidence and if the judgment is sustainable on any legal theory, it must be affirmed. Smith v. Bruning Enterprises, Inc. (1981), Ind.App., 424 N.E.2d 1035.

ISSUE I: Damage Award

Complete argues that the contract was a cost-plus contract which totaled $180,698.82 and concludes that it is entitled to damages of $63,799.94. In support of this contention it points to its own evidence and the evidence of its expert witness who described unforeseeable cost overruns for the entire job. Labor escalated from 1142 to 4000 man hours and material cost grew from $54,900 to $84,700. It presented evidence that the contract could not have been completed according to the specifications. It claims that it was not obligated to perform work outside the scope of the contract.

There was also evidence before the court that additional costs were incurred and change orders were made, but the matter was entirely settled in February of 1985 when the contract price was increased to *1219 $126,379. This fact was not only testified to by Sodrel but it was supported by Complete’s own documents, billings, and letters. All previous change orders and extra costs were included in the amended final price. Complete’s argument, primarily directed to its all or nothing claim for $63,799.94 on a cost-plus basis totally ignores this evidence and asks us to reweigh the evidence and redetermine the credibility of the witnesses.

As to events occurring after February of 1985, the date of the amended price, Complete’s argument in its entirety is as follows:

But after February 6, 1985, the cost of materials from Eckart Supply increased to $59,175.83 or $13,495.83 (almost the exact amount claimed by Eckart Supply in its cross-claim) with many of the changes coming from an employee of Sodrel (See Transcript Volume 6 of 8, Page 927). It appears that the employee of Sodrel was running a tab at Complete’s expense and without the knowledge of Complete as to how much.

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Bluebook (online)
530 N.E.2d 1216, 1988 Ind. App. LEXIS 993, 1988 WL 130742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/complete-elec-co-inc-v-liberty-nat-bank-trust-company-indctapp-1988.