Fred L. Stanfield Construction Co. v. Stearns Corp. of Nevada (In re Stanfield)

9 B.R. 790, 1981 Bankr. LEXIS 4724
CourtUnited States Bankruptcy Court, D. Nevada
DecidedMarch 11, 1981
DocketBankruptcy No. 79-00445; Adv. No. 80-0001
StatusPublished
Cited by1 cases

This text of 9 B.R. 790 (Fred L. Stanfield Construction Co. v. Stearns Corp. of Nevada (In re Stanfield)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fred L. Stanfield Construction Co. v. Stearns Corp. of Nevada (In re Stanfield), 9 B.R. 790, 1981 Bankr. LEXIS 4724 (Nev. 1981).

Opinion

BERT GOLDWATER, Bankruptcy Judge.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

Plaintiff entered into three separate subcontracts with Stearns Corporation of Nevada (SCN), the general contractor, for a 72 unit condominium project in Sparks, Nevada, known as Silver State Condominiums. The project consisted of twelve buildings and a recreational building.

This was plaintiff’s first venture as a subcontractor. He had been a carpenter and worked as a carpenter foreman. Plaintiff’s subcontracts were (1) rough carpentry and framing $199,500, (2) roofing $87,000, and (3) finish carpentry $36,000.

During the job SCN had four different superintendents. The job was closed down for three months by the Sparks City officials for failure of the plans to provide proper fire safety requirements. On the rough carpentry, SCN was to furnish all materials except rough hardware (nails, etc., to hold framing together). SCN was to furnish electric power. Plaintiff was to furnish forklift for handling the materials.

Plaintiff contends that some of his claims are directly due to the failure of SCN to properly supervise and coordinate the job, to the shutdown caused by SCN which required redoing work previously done because of weather conditions during the delay, to acts and conduct which interfered with efficiency such as trenching after slabs poured, failure to supply adequate materials, failure to timely supply materials causing delays and repeating work, and to defects in plans. In addition, plaintiff contends SCN used plaintiff’s men and equipment for work outside plaintiff’s subcontracts.

Defendants contend that Stanfield was inexperienced, undercapitalized and finally failed to finish the job. Defendants also claim that plaintiff did not give proper notice of lien or prelien.

The trial covered August 4, 5, 6, and 7 and November 3, 4, and 5,1980. Both sides have submitted briefs covering all issues. From all of the evidence, both oral and documentary and the exhibits in evidence, the Court makes its findings and conclusions as follows:

FINDINGS OF FACT

1. Truckee Meadows Development Company is a joint venture composed of two limited partnerships:

a. One limited partnership is called Stearns Properties, a California limited partnership of which Phillip Stearns was the general partner and at all times the general managing partner of the ownership entity.

[793]*793b.The other limited partner is Truckee Meadows Developers, a Nevada limited partnership of which Valley Ranch Company, a Neveda corporation, is the general partner.

2. Truckee Meadows Development Company recorded the statement of its joint venture with the County Recorder of Wash-oe County May 15, 1978 (Book 1250, Document No. 535417). This was amended June 20,1978 (Book 1262, Document No. 539952). No further amendments were ever filed or recorded.

3. At all times Stearns Corporation of Nevada was a Nevada building contractor of which Phillip Stearns was president.

4. Truckee Meadows Development Company was the owner of real property at Sparks, Nevada, and entered into a contract with Stearns Corporation of Nevada, as general contractor, to build Silver State Condominiums, a project calling for 72 units composed of 12 buildings and a recreation hall with A units (2 bedrooms) and B units (3 bedrooms).

5. Stearns Corporation of Nevada as general contractor entered into three written subcontracts with plaintiff Stanfield Construction Company:

a. November 28, 1978 rough carpentry and framing $199,500.

b. December 11, 1978 roofing $87,000.

c. January 4, 1979 finish carpentry $36,-000.

6. All subcontracts required that any charge for extras, alterations or additions were to be in writing signed by the contractor.

7. Plaintiff received payment by submitting invoices which were reviewed by defendant SCN and thereafter paid in such amount as certified by SCN through a builder’s control account of Home Savings and Loan. Each time an invoice was submitted, plaintiff was required to and did sign a release of mechanic’s lien which he “has, or may have” in the real property.

8. During the course of the work on the rough carpentry contract Stanfield invoiced $221,592.57. Of this amount $4,061.32 should have been charged to finish carpentry and was reinvoiced as No. 8159 and paid again on the roofing contract. SCN as contractor paid $195,553.59 on these invoices.

The disputes between the parties as to the rough carpentry contract are as follows:

a. Plaintiff claims $18,268.44 as extras.

b. Plaintiff claims $3,923.33 was wrongfully deducted.

c. Defendant SCN claims $22,926.78 which should have been paid by Stanfield and became debts which SCN paid for the account of Stanfield (back charges).

d. Plaintiff claims $14,254.20 in Exhibit B which were not invoiced.

9. As the contract was for $199,500 and Stanfield received $195,553.59, there remains $3,966.41 on the basic contract unpaid, subject to valid back charges plus extras.

10. The extras charged and remaining unpaid are as follows:

a. An extra for re-layout of buildings:

1. Invoice 8119 $1,185.36

2. Invoice 8132 $ 652.04

3. Invoice 8137 $ 431.04

b. Extras for glue, paper, vents, and clips deducted by contractor.

c. For use of a generator to be supplied by contractor:

1. $226.80 deducted from Voucher 113
2. $204.12 deducted from Voucher 153
3. $268.80 deducted from Voucher 177

d. For extra work on other buildings as shown in Invoice 7515, orally agreed to $10,-550.

e. Wind damage $2,690.

f. For various extras for firring, repairs, etc.; Invoice 8109 $2,760.

11. The charges for doing over the layouts ($2,268.44) are legitimate charges caused by the shutdown of the job from December to April. During that period of time, without fault of plaintiff, the weather made all layouts useless and required redoing.

[794]*79412. The generator charges are for power which was to be furnished by the contractor and should be allowed ($699.72).

13. The hardware on the job for rough carpentry consisting of glue, paper, clips, etc., was the obligation of plaintiff.

14. The work in other buildings was required to be done the same as the written change order attached to the contract. There was an oral agreement that each of the items would be carried into the whole project in the same manner and form as the written change order and would be paid accordingly ($10,550).

15. The wind damage was not due to the fault of SCN and is a risk the plaintiff had agreed to bear and was required to protect against.

16. Invoice 8109 represents work which was not in the plans and was directed to be done by the superintendent on the job and payment promised. There was no promise to pay $1,000 extra for doing work immediately. There should be allowed $1,690.

17. The amounts claimed in Exhibit B of $14,254.20 consist of numerous items.

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Bluebook (online)
9 B.R. 790, 1981 Bankr. LEXIS 4724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fred-l-stanfield-construction-co-v-stearns-corp-of-nevada-in-re-nvb-1981.