Hadley v. Burton

265 S.W.3d 361, 2008 Mo. App. LEXIS 1321, 2008 WL 4401415
CourtMissouri Court of Appeals
DecidedSeptember 30, 2008
Docket28405, 28420
StatusPublished
Cited by9 cases

This text of 265 S.W.3d 361 (Hadley v. Burton) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hadley v. Burton, 265 S.W.3d 361, 2008 Mo. App. LEXIS 1321, 2008 WL 4401415 (Mo. Ct. App. 2008).

Opinion

JEFFREY W. BATES, Judge.

Joe Dean Hadley, d/b/a Hadley Builders (Hadley) filed a two-count amended petition against homeowners Shawn and De’Ann Burton (collectively, the Burtons) for: (1) perfection of a mechanic’s hen; and (2) breach of a construction contract (the contract). In the contract, the Bur-tons agreed to pay attorney’s fees for enforcement and 10% interest on unpaid balances. The Burtons filed a counterclaim that included a count for breach of contract.

A jury found in Hadley’s favor on the mechanic’s lien and awarded him $85,000. On the breach of contract count, however, the jury determined that Hadley had sustained zero damages, even though the jury purported to find in Hadley’s favor on that count. The jury found against the Bur-tons on their breach of contract count. After trial, the court denied Hadley’s request for attorney’s fees and a 10% rate of post-judgment interest. Instead, the judgment awarded Hadley $85,000 with post-judgment interest at the statutory rate of 9%. See § 408.040.1. 1

Both Hadley and the Burtons have appealed from the judgment. Hadley contends the trial court erred by denying his request for attorney’s fees and setting the rate of post-judgment interest at 9%. The Burtons present three points on appeal. First, they contend the trial court erred by denying the Burtons’ motion for directed verdict at the close of all evidence because Hadley failed to submit substantial evidence of a “just and true account” of the claim as required by § 429.080. Second, they contend the court erred in giving Instruction No. 7 because it failed to follow substantive law on mechanic’s liens in two respects. Third, they contend the court erred in granting partial summary judgment, denying a motion for judgment notwithstanding the verdict (JNOV) and *365 allowing Hadley to amend the property description after trial because he did not comply with the requirement that the mechanic’s lien include “a true description of the property.” Finding no merit in any the parties’ various contentions, the judgment is affirmed in all respects.

I. Factual and Procedural History

On November 30, 2002, the Burtons and Hadley entered into the contract hiring Hadley to be the general contractor for construction of the Burtons’ new home in Barry County, Missouri. Shawn Burton is a physical therapy assistant with construction experience, but he is not a general contractor. De’Ann Burton is an occupational therapist and program coordinator with some bookkeeping experience. The Burtons spent about five years working on the plans for construction of their new home and at least a year interviewing general contractors. They eventually decided on Hadley, who had 26 years of experience building mostly custom homes.

The Burtons and Hadley signed a written contract in which the Burtons agreed to pay the “net cost to [Hadley] of all expenses, plus 10% of said amount as commission for [Hadley].” The net cost was defined as “the actual cost for any and all expenses associated with this project.” Thus, the Burtons agreed to pay actual cost plus commission directly to Hadley, who would pay his suppliers, subcontractors, and workers. The contract further required the Burtons to pay Hadley “Progress Payments to the Sum of $250,782.40 Estimated Cost.” Payments were to be made to Hadley at thirty-day intervals, and any amount remaining unpaid after thirty days would accrue interest at the rate of 10%. In the event of enforcement or collection of the contract, the Burtons were to pay Hadley “all costs and expenses for such enforcement and/or collection, including reasonable attorney fees.”

The parties arrived at the total estimated cost of $250,782.40 pursuant to a “Cost Estimate & Analysis” (the estimate) attached to the contract. The estimate was divided into three columns. The first column described the items to be included in the home. The middle column was Had-ley’s cost estimate for the items, and the third column, under the heading “SubContractor,” consisted of a list of items the Burtons had already done or were going to do themselves. Hadley agreed not to take a fee on any items contained in the third column, and a notation of “No %” was placed in the column. Hadley’s fee was to be calculated based upon the payments for items in the second column, and the Bur-tons understood this. Before executing the contract, Hadley and the Burtons went through the estimate in detail at least twice.

On February 11, 2003, Hadley submitted his first request for payment (draw request) in the amount of $20,224.62. The draw request included a summary of items and backup documentation of bills and invoices associated with each item listed in the summary. Labor charges came from time sheets that were available for review by the Burtons. Hadley submitted the draw request to De’Ann Burton. She reviewed the documents, approved them and prepared a payout authorization to Fidelity Title Company (Fidelity). Fidelity handled all of the disbursements for the Bur-tons. The amount of Hadley’s first draw request was paid the next day. On February 22, 2003, Hadley submitted his second draw request for $9,338.98, and that amount was similarly approved and paid about ten days later. This second draw request, as well as all subsequent ones, was prepared in the same manner and *366 with the same supporting documentation as the first one.

Kay Concrete was one of Hadley’s suppliers for the Burton job, and the cost estimate for this work was included in the second column of the contract. In early March 2003, Hadley went to Kay Concrete to pay his bill for materials used in the construction of the Burtons’ home. If Hadley paid early, he received an “early pay” discount. Hadley discovered that the Burtons had already paid this bill directly. Hadley learned that the Burtons had made a similar direct payment to Meeks, another of Hadley’s suppliers for the Burtons’ home construction job. The Burtons had learned about the early pay discount from Fidelity and requested funds to pay Kay Concrete and Meeks directly. Hadley told the Burtons that the early pay discount belonged to the contractor, and he insisted that the money paid to Kay Concrete and Meeks be refunded. The Burtons complied. The payments were returned, and the funds were re-issued to Hadley in accordance with the contract. Hadley was paid his 10% commission on these items.

After this occurred, the Burtons consulted with an attorney. He advised the Burtons that, before they authorized any further draw requests, Hadley should be required to sign a “Reservation of Rights Acknowledgment” (the acknowledgment). In relevant part, this document stated:

[T]his Acknowledgement constitutes the entire understanding among the parties so far as reservation of rights and non-waiver by payment and supercedes [sic] all prior agreements or acknowledge-ments of the same between the parties. This Agreement arises under and is to be construed in accordance with Missouri law, the parties hereby expressly agreeing that Greene County, Missouri shall hold the only appropriate venue for resolution of any dispute arising from this agreement and that the prevailing party shall be entitled to reasonable attorney’s fees and costs.

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Cite This Page — Counsel Stack

Bluebook (online)
265 S.W.3d 361, 2008 Mo. App. LEXIS 1321, 2008 WL 4401415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hadley-v-burton-moctapp-2008.