Hallett Construction Co. v. Iowa State Highway Commission

139 N.W.2d 421, 258 Iowa 520, 1966 Iowa Sup. LEXIS 706
CourtSupreme Court of Iowa
DecidedJanuary 11, 1966
Docket51693
StatusPublished
Cited by17 cases

This text of 139 N.W.2d 421 (Hallett Construction Co. v. Iowa State Highway Commission) 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
Hallett Construction Co. v. Iowa State Highway Commission, 139 N.W.2d 421, 258 Iowa 520, 1966 Iowa Sup. LEXIS 706 (iowa 1966).

Opinion

*522 Garfield, C. J.

These are appeals by plaintiff, granted by us under rule 332/ Rules of Civil Procedure, from a ruling of the district court setting aside default and judgment entered by its clerk in each of three similar law actions, consolidated here for purposes of appeal.

Two principal questions are presented: 1) Are plaintiff’s claims “for a, sum certain, or which by computation, can be made certain”, within the meaning of rule 232(a), R. C. P:, authorizing entry of judgment by the clerk on default? 2) Was “good cause shown” by defendant for setting aside the defaults, within, the meaning of rule 236 ? '

The trial court held that except for the retained percentage of the contract price due plaintiff-contractor under a paving contract with defendant Iowa State Highway Commission in the first of the three actions, plaintiff’s claims are not" “for a sum certain” as contempláted by rule 232(a). The court set aside not only each of the default judgments except for the one' retained percentage but the defaults as well.

' I. A rather full statement of the actions is ealled for. Plaintiff is a paving contractor with its principal place of business in Minnesota. Each petition alleges it entered into a written contract with'defendant commission to pave part'of Interstate 80 Highway in Cedar County. For present purposes the petitions are essentially similar. We will now refer particularly to thé one first filed, on June 24, 1964,'which'asks the largest recovery. Copy of the contract is 'attached to and made part of the petition. The total contract price is $1,892,470.75 and this is the amount for which the contractor’s bond, copy of which is also made part of the petition, was furnished.

The petition goes on to allege it was required to and did agree by letter to “have a two paver spread with all necessary equipment and 'persóhnél on the' project July 1, 1959 * * *”; plaintiff complied with this requirement and was ready, willing and able to perform all tasks necessary for timely completion of the contract; defendant issued its certificate of completion of the contract September. 11, 1961; defendant submitted, to plaintiff its plans, and specifications which were later embodied in the contract; defendant warranted and represented to plaintiff *523 —whether orally or in writing, expressly or impliedly, is not alleged — the plans and specifications were complete, accurate and sufficient to enable plaintiff to accurately compute its cost of construction and a reasonable profit in completing its bid and that all defendant’s information and knowledge would be contained in the plans and specifications or communicated to plaintiff. ' .

The petition also alleges defendant warranted and represented to plaintiff by the plans and specifications and the cofitract and extra work orders that plaintiff would be able to commence work on or about the date required by the contract, defendant would see that all preceding work was, properly .and timely performed without injury to plaintiff, the roadbed would require only limited subgrade correction, plaintiff would be able to proceed in an orderly and logical manner to complete the contract as required, and that construction could proceed free from other traffic and use of the right-of-way. The petition further alleges plaintiff relied upon these representations and warranties and was' thereby induced to submit its bid. and enter into, the contract.

The petition then states the plans, specifications and contract were inadequate, insufficient and :misleading and did not contain all information available to defendant; defendant knew, or in the exercise of reasonable care should have known, existing, conditions and that the plans, specifications and contract were insufficient and misleading in six alleged respects; that defendant knew or should have known it was necessary for it to disclose all these matters to allow plaintiff to prepare, a proper bid and perform its contract without detriment to it; because, of plaintiff’s inability to commence work as the contract required, traffic on the road, additional requirements not covered by the contract, inadequacy of subgrade and roadbed and refusal to permit orderly progress — all chargeable to defendant — plaintiff was required to furnish equipment, extra labor ancT materials and incur added expense not originally contemplated.

The petition goes on to allege the fair .and reasonable amount of its damage as:

1) Rental value of equipment not usable because of inability to commence work ' $263,997.20

*524 2) Rental value of subgrade equipment not usable for the same reason 142,262.40

3) Increased cement cost because of “excessive delay” 17,053.99

4) Necessity for stone base because of failure of preceding contractor to perform contract 7,267.51

5) Additional cost of hauls because of “inability to perform in orderly fashion” 31,197.41

6) “Additional bulk hauls, etc.” 9,459.38

7) “Traffic control” 6,599.17

8) Construction temporary shoulders 3,354.04

9) “Standby labor because of delays” 5,424.34

10)“Excessive labor cost” 99,111.03

Total $585,731.49

The petition then states defendant has acknowledged — in what manner is not alleged — plaintiff has sustained damages and at defendant’s instance plaintiff submitted to it an itemized account of its claim, “no part of which has been settled or paid defendant issued its final estimate of what is due plaintiff under the contract, certifying the amount of the retained percentage as $197,411.69 and has acknowledged it owes plaintiff this amount. It is not alleged or argued defendant has acknowledged its indebtedness to plaintiff in any sum except the retained percentage.

Prayer of the petition is for judgment for $783,143.18 or in the alternative for “the acknowledged amount of $197,411.69” with interest from September 11, 1961, and the damages sustained in the amount of $585,731.49, also with interest from the same date.

Petitions in the other two actions are similar to the one just summarized except that in one only four, and in the other three, of the items of damage are claimed, the retained percentage is smaller, and the prayer of each is in a smaller amount. Total amount claimed in the three petitions is $966,236.83 with interest from September 1961.

A month after the petitions were filed defendant filed its *525 special appearance in each case. They Avere overruled September 4, 1964. Defendant filed nothing further and on November 4, 1964, “on plaintiff’s request pursuant to rules 230 and 231, R. C. P.,” the clerk entered default against defendant “for Avant of compliance with the Rules of Civil Procedure.”

Also on November 4 plaintiff filed in each case Avhat is denominated “Affidavit in Support of Judgment on Default Pursuant to Rule 232” of E. W.

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Bluebook (online)
139 N.W.2d 421, 258 Iowa 520, 1966 Iowa Sup. LEXIS 706, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hallett-construction-co-v-iowa-state-highway-commission-iowa-1966.