Fowler v. A & A Co.

262 A.2d 344, 1970 D.C. App. LEXIS 223
CourtDistrict of Columbia Court of Appeals
DecidedFebruary 20, 1970
DocketNos. 4800, 4801
StatusPublished
Cited by84 cases

This text of 262 A.2d 344 (Fowler v. A & A Co.) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fowler v. A & A Co., 262 A.2d 344, 1970 D.C. App. LEXIS 223 (D.C. 1970).

Opinion

NEBEKER, Associate Judge.

These cases arise from a breach of a home-improvement contract to waterproof the basement of a home located in Maryland and belonging to the Fowlers.' The contract, dated February 22, 1961, contained a handwritten statement providing that the “work” was guaranteed for 5 years. Suit was filed against O’Roark and the A & A Company1 on February 18, 1966. O’Roark filed a third-party complaint against Washington Waterproofing Company on April 19, 1966. The latter [347]*347had agreed with O’Roark by written contract dated February 24, 1961, to do the waterproofing work. That form-contract provided:

The above work is covered by our standard (5) year guarantee against penetration of water through surfaces treated by us. * * *

The trial court ruled that the statute of limitations did not bar the Fowlers’ action. It also dismissed the third-party complaint and disallowed a claim by the Fowlers for loss of use.2

The waterproofing entailed extensive cement work and installation of a subsurface drain and pump. It was completed on March 10, 1961. The basement wetness returned about IS months later in June, 1962. O’Roark was notified and repeatedly promised to correct the defects. Thereafter, the Fowlers sent a letter, dated June S, 1963, demanding performance of the contract within 5 days. It then became apparent that O’Roark would not correct the defect. These actions were subsequently brought as outlined above.

O’Roark maintains that this action is barred by the Maryland statute of limitations which, he says, began to run from the date the wetness in the basement recurred — i.e., June, 1962. We disagree. Maryland has held that their statute of ■limitations bars only the remedy in a contract action, Frank v. Wareheim, 177 Md. 43, 7 A.2d 186, 191, 193 (1939), and as such is a procedural bar only. Mandru v. Ashby, 108 Md. 693, 71 A. 312 (1908). Since the laws of the forum always apply to matters of procedure, Namerdy v. Generalcar, D.C.App., 217 A.2d 109, 113 (1966), we hold that the trial court properly applied the District of Columbia 3-year statute of limitations.3 We also hold that the trial court did not err in ruling that the statute began to run from the date O’Roark breached the contract by failing to correct the defect on demand — i.e., June 10, 1963.

The statute of limitations begins to run in the District of Columbia from the date a contract is breached. Foley Corp. v. Dove, D.C.Mun.App., 101 A.2d 841, 842 (1954). Breach is “an unjustified failure to perform all or any part of what is promised in a contract” entitling the injured party to damages. Davenport Osteopathic Hospital Association v. Hospital Service, Inc., Iowa, 154 N.W.2d 153, 162 (1967); Restatement of contracts § 314 (1932); Simpson, Contracts, § 159 (2d ed. 1965); 17 Am.Jur.2d Contracts § 441 (1964). But only where the breach is material — that is, receiving something “substantially less or different from that for which he bargained”4 — is one able to elect the alternative rights and the remedies available to him. Sitlington v. Fulton, 281 F.2d 552, 555 (10th Cir. 1960); Schnepf v. Thomas L. McNamara, Inc., 354 Mich. 393, 93 N.W.2d 230, 232 (1958); 17 Am.Jur.2d Contracts § 447 (1964).

Here it is clear that in June, 1962, the contract was materially breached when wetness returned.5 The Fowlers could have then sued to recover damages including cost of repair. However, the guarantee provision is, as most provisions are, clearly a promise to do whatever is necessary, including repair of improperly performed work, to provide the guaranteed dry basement. The Fowlers elected to pursue this right under their contract and they clearly had that option. Sitlington v. Fulton, supra; Restatement of Contracts §§ 314 and 327, Comment (b) (1932).; 17 Am.Jur.2d Contracts § 447 (1964). They [348]*348contacted O’Roark who, on numerous occasions, promised to correct the defect. Only-after June 10, 1963, was it apparent that O’Roark had totally repudiated6 the contract. Accordingly, the statute of limitations began to run against the repudiation of the promise to maintain dryness on June 10, 1963, and the suit was timely commenced.

O’Roark also contends that the warranty provision in the contract was not a guarantee of a dry basement. The contract provides that O’Roark would furnish all labor and material to break up and replace the floors all around the basement walls, install drain tile, gravel, and a pump. It then stated, “Work guaranteed for 5 years.” The trial court found that the warranty clause was ambiguous and allowed the parties to introduce evidence of the surrounding circumstances to aid in its interpretation.

In construing a contract where the laws of two jurisdictions are involved, the forum applies the law of the state which has the “more substantial interest in the resolution of the issue.”7 Normally, this would be the law of the state where the contract was executed. Young v. State Farm Mutual Automobile Insurance Co., D.C.App., 213 A.2d 890, 891 (1965). But in this area of contract law, both Maryland and the District of Columbia are the same.8 They allow the parties to present evidence of surrounding circumstances where the trial court has found the contract provision ambiguous.

The evidence presented by the Fowlers on this question was substantial. The issues of fact were resolved by the court which found that the clause warranted a dry basement. That determination not being plainly wrong, we sustain the finding. D.C.Code 1967, § 17-305. Freas v. Gitomer, D.C.App., 256 A.2d 573, 574 (1969). See also cases cited therein. In so doing, we note that the interpretation given' the guarantee provision in the Fowlers’ contract is consistent with the more explicit guarantee in the Washington Waterproofing Co., Inc. form-contract. Cf. Edmonson v. Mosley, D.C.App., 259 A. 2d 110 (decided December 3, 1969, slip opinion at 3).

O’Roark also contends that the third-party complaint should not have been dismissed. We disagree. O’Roark subcontracted the actual performance of the work to Washington Waterproofing Co., Inc., who in turn warranted the work. Thus, when wetness recurred in June, 1962, Washington’s warranty was breached and had demand been made of it to make good its implied promise to return and improve upon its previous work, it, like O’Roark, would have been obliged to do so under pain of total abrogation. But the trial court found as a fact that O’Roark “made no demand upon [Washington] to rectify any part of its work following the complaint of the [Fowlers] that the work [349]*349had been improperly done and that the basement was again damp.” That finding is not plainly erroneous and we cannot upset it.

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Bluebook (online)
262 A.2d 344, 1970 D.C. App. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fowler-v-a-a-co-dc-1970.