Grady v. SE Gustafson Construction Company

103 N.W.2d 737, 251 Iowa 1242, 1960 Iowa Sup. LEXIS 616
CourtSupreme Court of Iowa
DecidedJune 14, 1960
Docket49970
StatusPublished
Cited by9 cases

This text of 103 N.W.2d 737 (Grady v. SE Gustafson Construction Company) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grady v. SE Gustafson Construction Company, 103 N.W.2d 737, 251 Iowa 1242, 1960 Iowa Sup. LEXIS 616 (iowa 1960).

Opinion

Thornton, J.-

At the outset it should be mentioned the trial and disposition of this case would have been facilitated by the use of pretrial procedure provided for in Division VI, rules 135 to 139, both inclusive, of the Rules of Civil Procedure.

Plaintiff, a subcontractor, brings this action in equity under the provisions of section 573.16, Code of Iowa, 1958, against the contractor, its surety and the Highway Commission. The contractor will be referred to herein as the sole defendant. Plaintiff’s action is based on a claimed balance due under the terms ■of a written contract and a series of oral contracts between plaintiff and defendant for the performance of work and labor by plaintiff, a subcontractor, on the Interstate Highway project north of Des Moines. Defendant, the contractor, holds the prime *1245 contract with the Highway Commission. Plaintiff filed his claim with the Highway Commission pursuant to chapter 573 of the Code in the sum of $52,359.42, and brought this action for $53,172.34 and for attorney fees under section 573.21. The trial court allowed plaintiff’s claim in the sum of $15,488.42 and taxed an attorney fee of $1500. Defendant appeals and plaintiff cross-appeals.

There is no question raised as to performance of the work or that oral contracts were entered into. The parties agree defendant has paid plaintiff $198,530.69 for work performed on the project, and defendant admits in its pleading there is $8419.79 still due plaintiff.

I. Defendant contends the action is premature and plaintiff is not entitled to his money until defendant receives the balance due it from the Highway Commission. The contract provides, 90% of all work will be paid when accomplished and within three days of receipt of estimates from the Highway Commission and is in part as follows: “* * * except the final payment, which said contractor shall pay to said subcontractor in full within three (3) days after final acceptance of the project and payment of the final estimate by the Iowa State Highway Commission.”

Its contention is the payment of the final estimate by the Commission is a condition precedent to the maintenance of the action. If that is the law defendant can prevent recovery by plaintiff forever. The facts in this case demonstrate such condition is not in the control of plaintiff. Plaintiff filed his claim with the Commission and under the provisions of section 573.14, Code of Iowa, 1958, could hold up payment by the Commission to defendant of double the amount of the claim. It is not urged the Commission has not accepted the project. John T. Pearson, resident engineer of the Commission in charge of the project, called by defendant, testifies:

“We were holding funds due Gustafson Construction Company, but the filing of the claim by the Grady Construction Company has nothing to do with it. It was being held because of a claim Gustafson has against the Highway Commission which is separate from this case. * * *
*1246 “If we pay Mr. Gustafson this $111,000, it would mean that he would have accepted his final estimate and had no further claim against the Highway Commission, therefore, he has not. signed the final estimate and will not.”

Defendant in no way offered to' explain its failure to sign the final estimate. The evidence shows plaintiff completed his work for defendant September 4, 1958, filed his claim December 6, 1958, and this action January 12, 1959. Under the provisions of the written contract (and the dealings of the parties show the oral contracts were handled the same), defendant was to cross-section the areas from which plaintiff excavated to determine the cubic yards hauled by plaintiff, and under the dealings of the parties plaintiff was to furnish a load count for the basis of estimate by the Commission to make payment during the progress of the work. A proper interpretation of the contract and dealings of the parties requires each to do so in a reasonable time. In all events it is the intention of the parties here the final payment is an absolute debt of defendant. Provisions similar to the one here have been held valid and enforceable, but where the contractor has by his own fault lost the right to payment the subcontractor is entitled to his compensation. 17 C. J. S., Contracts, section 502(2) (d), page 1058. Here defendant has not lost his right to payment from the Commission, but because of other matter's with the Commission is voluntarily delaying final payment. Under such circumstances plaintiff is entitled to his compensation, and a cause of action accrues in his favor within a reasonable time. As supporting this view see 12 Am. Jur., Contracts, section 329, page 885; section 381, pages 957, 958; sections 300, 301, pages 855 — 857; 17 C. J. S., Contracts, section 502(2) (d), page 1058; and McDermott v. Mahoney, 139 Iowa 292, 115 N.W. 32, 116 N.W. 788. Here plaintiff did not act with unreasonable haste under the circumstances, he was entitled to have the matter judicially determined on the date action was commenced.

II. The issue between the parties is, how many yards of earth did plaintiff excavate pursuant to the contracts? The question is purely one of fact, the burden is on plaintiff to prove the number of cubic yards hauled by a preponderance of the evidence. On this appeal we consider the case de novo and in *1247 such cases we give weight to the findings of the trial court, but we do not abdicate our function as triers of fact. Snater v. Walters, 250 Iowa 1189, 98 N.W.2d 302; and Warren County v. Elmore, 250 Iowa 348, 93 N.W.2d 756.

To sustain his burden of proof by a preponderance of the evidence plaintiff must offer evidence in support of his claim, which when fully and fairly considered produces the stronger impression and be more convincing when weighed against the evidence introduced in opposition thereto. See Instruction No. 9, Uniform Jury Instructions Proposed by the Special Committee on Uniform Court Instructions of the Iowa State Bar Association.

The contract provides, “* # # Contractor will cross-section Channel and Borrow and pay subcontractor for actual cubic yards excavated.” And plaintiff as a witness conceded the cubic yards excavated were to be determined by cross-sectioning. The contract places this duty on the contractor and requires him to pay plaintiff for actual cubic yards excavated. The contract does not exclude other methods of computation where the cross-sectioning has not been done, or is incomplete or inaccurate. Our duty is to determine from the evidence the actual yards excavated and plaintiff should be paid for such amount. John T. Pearson, the resident engineer, testifies cross-section quantities give the most accurate feasible answer and that the load count is quite inaccurate. Where the cross-sectioning has been accurately done we will use such to determine the yards excavated.

Plaintiff bases his proof on load count kept by him or his employees as the loads of dirt were excavated and hauled to the roadway to be filled. He does not have daily records for work performed prior to- May 6, 1958.

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Bluebook (online)
103 N.W.2d 737, 251 Iowa 1242, 1960 Iowa Sup. LEXIS 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grady-v-se-gustafson-construction-company-iowa-1960.