Fruin-Colnon Corp. v. Air Door, Inc.

278 S.E.2d 708, 157 Ga. App. 804, 32 U.C.C. Rep. Serv. (West) 1335, 1981 Ga. App. LEXIS 2016
CourtCourt of Appeals of Georgia
DecidedMarch 5, 1981
Docket61488
StatusPublished
Cited by6 cases

This text of 278 S.E.2d 708 (Fruin-Colnon Corp. v. Air Door, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fruin-Colnon Corp. v. Air Door, Inc., 278 S.E.2d 708, 157 Ga. App. 804, 32 U.C.C. Rep. Serv. (West) 1335, 1981 Ga. App. LEXIS 2016 (Ga. Ct. App. 1981).

Opinion

Quillian, Chief Judge.

Appellant was a contractor on a portion of the MARTA subway construction in Atlanta and in June 1978 submitted a purchase order to appellee-supplier in Ohio to provide a steel grating approximately 20 feet in diameter and a frame to hold it to cover an exhaust shaft for a subway tunnel under downtown Atlanta. The price was $20,353 with delivery by the fourth quarter of 1978. Appellee was required to supply shop drawings for the grate and framework in accordance with MARTA’s specifications for approval by MARTA. The first four such shop drawings submitted by appellee were rejected by MARTA because they did not meet the load bearing capacity specification, and appellee was requested to provide calculations showing that its shop drawings would meet the load bearing specification. Appellant suggested that appellee have an engineer perform the calculations. Since appellee did not have an engineer, appellant said it knew of an engineer who could provide the calculations. Appellee authorized the appellant to have the engineer do this. The engineer’s calculations showed that appellee’s fourth shop drawings did not meet the load bearing specification. Appellee thereupon authorized appellant to have an engineer redesign the load bearing supports for the grating to meet the specification. Appellee admitted to agreeing to pay up to $500 for engineer work. An engineer designed several methods by which the supports could be made to meet the specification. Appellee then made a fifth shop drawing and incorporated one of the load bearing support designs recommended by the engineer. This shop drawing was approved by MARTA. The engineer charged appellant for the services, appellant paid the bill and back charged the cost to appellee’s account.

During August, 1978, appellee told appellant that an escalation of the price would have to be made if the shop drawings were not approved by September. In November, appellee informed appellant that an escalation of $1500 was imposed. In January 1979, appellee escalated the price by an additional $460, due to a specification *805 change.

After the shop drawings were approved, appellee constructed the grating and frame and shipped it to appellant in April 1979. When appellant installed the frame, it discovered that the grating would not fit within the frame. Appellant thereupon modified the frame so that the grating would fit and informed appellee thereof some two weeks later. Appellee billed appellant $22,313 for the grating and frame, which amount included the two price escalations. Appellant, claiming that it had not agreed to the price escalations and that appellee owed appellant for the engineering services and the cost of modifying the frame so that the grating would fit; paid appellee only $16,684.74. Appellee brought this suit for the $5,628.26 due on the account, and appellant counterclaimed for breach of contract. In a non-jury trial, the trial court found for appellee in the amount claimed, less $200 for the engineer’s services, from which judgment this appeal is taken. Held:

1. Was the trial court correct in granting the price escalations to appellee?

When appellee was presenting its case through its sole witness, an officer of appellee, the witness identified several documents. Among them was a copy of a letter from appellant to its contractor (Parsons, Brinckerhoff/Tudor) asking that a change order be granted to cover the cost of the two price escalations appellee had given appellant notice of. In cross examination, the witness admitted that price escalations were not permitted by the language of the purchase agreement and that he had no knowledge of appellant agreeing that appellee would be paid for the escalations. During further cross examination of the witness concerning the basis for the escalations, the trial judge, sua sponte, admitted in evidence appellant’s letter to its contractor asking for a change order, and ruled that the letter modified the purchase agreement as to price. Invoking the parol evidence rule, the trial court then refused to permit appellant to present any evidence concerning the meaning and intent of the letter or that the price escalations were not agreed to by appellant. Subsequently appellant made offers of proof that its evidence would show that the letter was not an agreement with appellee, that its normal course of conduct was to ask for a change order if a supplier asked for a price escalation and pay the supplier only if the change order was granted, and that appellant had not agreed by the letter or otherwise to accept the escalations.

The trial court’s rulings concerning the letter are claimed as error.

The letter on its face was not a communication between appellant and appellee, but was to a third party. It does not purport *806 nor appear to be a modification of the purchase agreement. If considered to be a modification, it is at least ambiguous as to the meaning and intent of appellant.

Parol evidence is admissible to explain all ambiguities in writings. Code Ann. § 38-502; Sportsman Camping Centers of America v. Bagwell, 140 Ga. App. 312 (3) (231 SE2d 118).

Since the letter does not appear to be a modification of the purchase agreement and is ambiguous as to whether it constituted a modification of the agreement, we find the trial court’s ruling excluding any evidence explaining the letter and holding that the letter constituted a modification of the agreement was error.

2. Two enumerations challenge the trial court’s failure to find that appellant could withhold from the purchase price the cost of engineer services. These services were provided through appellant to appellee at its request to determine whether appellee’s shop drawings met the load bearing specification and to design a framework which would meet the specification. Appellant paid $2675 for engineer services and added an overhead and handling fee of $401.20 for a total amount of $3076.20, which was back charged to appellee’s account. The trial court allowed $200 for engineer services in granting judgment to appellee.

Appellee’s contention that appellant was not entitled to recover anything for engineer services because neither the claim for those services or cost thereof was included in the counterclaim is incorrect. Since the evidence of this claim was received without objection, appellant’s counterclaim was amended by operation of law. Code Ann. § 81A-115 (b) (Ga. L. 1966, pp. 609, 627 through 1972, pp. 689, 694); Grizzard v. Petkas, 146 Ga. App. 318 (3) (246 SE2d 375); Whelchel v. Smith, 155 Ga. App. 901 (1) (273 SE2d 619).

Because appellee admitted to agreeing to pay up to $500 for the engineer’s services, we find that the trial court’s ruling that appellant was entitled to recover only $200 therefor was clearly erroneous. Code Ann. § 81A-152 (a) (CPA § 52 (a); Ga. L. 1969, pp. 645, 646; 1970, pp. 170, 171); Lamas v. Baldwin, 140 Ga. App. 37 (1) (230 SE2d 13).

Appellant contends that the trial court erred in not finding an implied agreement by appellee to pay for the reasonable value of the engineer’s services provided for appellee by appellant.

The evidence shows that appellee agreed to have appellant engage an engineer on appellee’s behalf to do the load bearing calculations on appellee’s shop drawing.

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278 S.E.2d 708, 157 Ga. App. 804, 32 U.C.C. Rep. Serv. (West) 1335, 1981 Ga. App. LEXIS 2016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fruin-colnon-corp-v-air-door-inc-gactapp-1981.