H. C. Lallier Construction & Engineering Co. v. Weicker Transfer & Storage Co.

25 P.2d 195, 93 Colo. 231
Supreme Court of Colorado·Decided September 11, 1933·No. No. 12,926.·Published·Cited by 1 cases

Opinion

Mr. Justice Bouck

delivered the opinion of the court.

There is before us for review a money judgment of $984.33 rendered in the district court against the plaintiffs in error", H. C. Lallier and H. C. Lallier Construction and Engineering Company. The interests of the two plaintiffs in -error are identical to such an extent that the briefs herein refer simply to “Lallier” as if he were the sole plaintiff in error, and we shall do likewise. The judgment was in favor of the Weicker Transfer and Storage Company as assignee of one G-. R. De Spain, a creditor of Lallier. . .

A contract was awarded to Lallier by the state of Wyoming for constructing a certain highway. By writ *233 ten contract with Lallier, De Spain agreed to do a. portion of the excavation work, for which she was to receive 10 cents per cubic yard on earth material and 17 cents per cubic yard on loose and solid rock. Under the main contract Lallier was to be paid monthly on the basis of monthly estimates of the work done, made by the Wyoming engineer in the course of the operations; 15 per cent of the estimated value of the work was to be retained by the state until completion and acceptance of the work, all such estimates and payments to be subject to correction in the final estimate and payment. The Lallier-De Spain contract provided as follows: “All payments of estimates to be consistent in time and quantity, as that paid by the Wyoming Highway Department to H. C. Lallier. The usual retained per cent of work done will be retained until the completion of the project and will then be paid to Gr. R. De Spain at the time of receiving the final estimate from the Wyoming Highway Department. ’ ’

On November 6, 1929, five days before completing her part of the work, De Spain gave a written assignment to the defendant in error, the Weicker company, purporting to assign to it all her right, title and interest in amounts to be retained by Lallier or the state of Wyoming then owing De Spain or to become due her in the future. The same day Lallier gave a written acceptance of the assignment. Thereby the Weicker company was substituted for De Spain as Lallier’s creditor in respect to that portion of the retained 15 per cent represented by De Spain’s work. The preliminary estimates of the amount of excavation done proved excessive, with the result that the 85 per cent payment based on the estimate was considerably more than 85 per cent of the actual earnings as finally determined under the contract provisions.

There can be no doubt that by the above-quoted loosely drawn provision Lallier and De Spain intended to make the payments under the subcontract conform to *234 the procedure established for payments under the main contract. This procedure contemplated that after each monthly estimate — necessarily a mere approximation'— ther'e should be paid exactly 85 per cent of what would be due if the estimate were correct. To such payment De Spain was absolutely entitled. That any such payment later proved more or less than 85 per cent of the actual earnings, as determined by the estimate of work done when finally accepted, is entirely beside the question. In other words, the payments made on the basis of the approximations were absolute payments properly made. Indeed, in the main contract it is expressly declared that monthly payments are not to be construed as an acceptance of any part of the work or materials, “but simply as payments on account.” It necessarily follows that what counsel term the “overpayment” made to De Spain was a payment on account, duly accomplished. There is nothing in the subcontract or in the main contract which would justify the argument that the “overpayment” should be, or should be deemed to be, refunded for the purpose of making’ the unpaid balance a full 15 per cent of the true cost or earnings. The 15 per cent never assumed the dignity of an independent deposit .or of a definite fund, but was a mere unpaid balance the size of which must remain undetermined until the final estimate and acceptance. It is to be noted that certain force-account items aggregating $375 and the so-called Cheyenne balance of $28.63 were wholly outside the subcontract and that therefore the 15 per cent provision did not apply to them. The evidence shows clearly that the parties properly applied the prescribed procedure to the matters covered by the contract, and that the two extra items mentioned were correctly dealt with as not within the terms of the contract; for after deduction of these two items from the $5,997.93 paid De Spain by Lallier up to and including' January 29, 1930, the remaining $5,594.30 is seen to constitute (within 2% cents) 85 per cent of the $6,581.50 calculated on the monthly *235 estimate which served as the basis for the January payments.

Counsel for the Weicker company argue, however, that under its assignment it is entitled to hold Lallier for an undiminished 15 per cent of the entire amount earned by De Spain. They contend that Lallier’s “overpaying” De Spain cannot lessen Lallier’s liability for the 15 per cent. But, as above shown, the “overpayment” was nothing but a payment on account, regularly made by the express terms of the contract between Lallier and De Spain. Only such portion of the 15 per cent is properly available under the assignment as is left after deducting, from the total amount actually earned by De Spain, the total of the payments she received under the contract up to but not exceeding 85 per cent of the sum based upon the preliminary estimate,

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H. C. Lallier Construction & Engineering Co. v. Weicker Transfer & Storage Co., 25 P.2d 195, 93 Colo. 231 (Colo. 1933).

25 P.2d 195 (H. C. Lallier Construction & Engineering Co. v. Weicker Transfer & Storage Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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