Hayes v. Chapman

894 N.E.2d 1047, 2008 Ind. App. LEXIS 2264, 2008 WL 4594114
CourtIndiana Court of Appeals
DecidedOctober 16, 2008
Docket53A05-0802-CV-84
StatusPublished
Cited by21 cases

This text of 894 N.E.2d 1047 (Hayes v. Chapman) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes v. Chapman, 894 N.E.2d 1047, 2008 Ind. App. LEXIS 2264, 2008 WL 4594114 (Ind. Ct. App. 2008).

Opinions

OPINION

BAKER, Chief Judge.

Appellants-defendants John D. Hayes and Stacy R. Hayes appeal the trial court’s [1049]*1049order denying their counterclaim against appellee-plaintiff Robert Lee Chapman, Jr., and foreclosing Chapman’s mechanic’s lien on construction he performed on the Hayeses’ residence. The Hayeses argue that the trial court erroneously concluded that Chapman did not violate the Indiana Home Improvement Contract Act1 (HICA), that the mechanic’s lien was invalid because it contained mathematical errors when filed, and that the trial court erroneously awarded prejudgment interest to the Hayeses on the lien. Finding no error, we affirm.

FACTS

Robert and John are friends and coworkers. For many years, Robert has had a part-time business doing construction work. In early 2001, John told Robert that he was interested in remodeling his farmhouse, parts of which were 150 years old. John used a software program to create some plans that, although they were not architectural plans and did not include dimensions, indicated approximately what John wanted to do to the residence. Robert examined the plans and stated that as a general matter, he thought he could perform the work, though he would have to check the feasibility of certain details. Robert and John agreed verbally that Robert would perform the work, with billing to be based on time and materials. There was no written contract, no bid, and no fixed contract price. Robert told John that no firm estimate was possible at the outset, though John remembers Robert stating that he thought he could complete the work for approximately $70,000. Robert and John did not discuss a start date or an end date for the project.

Robert and his crew were responsible for the carpentry, excavation, plumbing, some landscape grading, and some concrete work. John hired the trencher, the electrician, the heating and air contractor, the landscapers, the painters, the fireplace contractor, the gutter supplier, the tile supplier, the carpet installer, the concrete contractor, and the drywall supplier and finisher.

Groundbreaking on the foundation began in August 2001 and water lines were installed at the end of 2001. Robert began his work on the foundation in February 2002, beginning major work on the basement in April or May 2002. He began erecting rafters and beams in August 2002 and framed the sub-floor in October 2002. Demolition of portions of the old house and interior work began in November and December 2002. During construction, John made a number of changes and additions to his original plans, including a larger patio and deck, a finished basement, a poplar — rather than drywall — ceiling in the great room, two lofts, a master bath, an upstairs deck, and a wraparound covered front porch. John admitted that these changes substantially increased the cost of the project. The changes also added to the length of time required to complete construction. John testified at trial that the delay in completion of the remodeling did not hurt him financially. Tr. p. 45.

John testified that in the fall of 2002, he expressed some concern to Robert about when the job would be finished, and in the winter of 2002, John asked Robert for a timeline. Robert replied that he might be able to finish the work by May 2003, but the changes and additions to the original plans altered Robert’s estimated timeline. As John’s October 2003 wedding date approached, he frequently expressed concerns to Robert about the timeline, inas[1050]*1050much as he had planned to be married at the residence.

Robert billed John at irregular intervals. John paid the bills promptly until March 2003, when Robert gave John a bill for $16,668. Hayes did not object to the amount of the bill but told Robert that he was having some “money issues” and asked for more time to pay. Tr. p. 40, 41. Robert agreed and continued with the construction.

On June 13, 2003, John took several friends, including Robert, on a four-day “bachelor trip” to the Bahamas before his wedding. Appellee’s Br. p. 6. John paid for Robert’s airplane ticket with the understanding that Robert would later reimburse him. Although Robert asked John several times what the ticket had cost, John never provided that information. Robert and John never agreed that Robert would deduct the cost of the ticket from a construction bill.

John did not pay Robert at all during the spring and summer of 2003. On September 1, 2003, John paid $10,000, which was less than the amount he owed at that time. It was the last payment John made to Robert on the project. On October 2, 2003, John fired Robert. John never provided Robert with written notice of any construction defects or damages he suffered as a result of any defects, nor did he ask Robert to finish the project or correct any alleged problems.

Robert eventually asked John why he had not paid the remaining balance, John directed Robert to submit an itemized bill, and on November 9, 2003, Robert did so. The bill reported an unpaid balance of $13,983. At the bottom of the bill, Robert wrote, “John, I have not deducted airline tickets from bill.” Appellant’s App. p. 42. John questioned some of the charges on the bill, and on November 19, 2003, Robert filed a notice of intention to hold mechanic’s lien.

On March 11, 2004, Robert filed a complaint against the Hayeses seeking to foreclose the mechanic’s lien and requesting prejudgment interest and attorney fees.2 On May 4, 2004, the Hayeses filed a counterclaim against Robert seeking damages for violation of HICA and breach of warranty. A bench trial on the complaint and counterclaim took place on April 30, May 1, and September 5, 2007. Subsequently, the parties filed proposed findings of fact and conclusions of law, and the trial court issued an order in favor of Robert on December 14, 2007, finding in pertinent part as follows:

18) [John] failed to pay the June 1, 2003 bill promptly because he did not have money available....
* * *
22) [John] did not object to any bill he received from [Robert] until October 3, 2003, when [John] objected to the amount of the bill that [Robert] told [John] he planned to submit.
23) [John] has not paid anything to [Robert] on [Robertas final bill of $13,983. [John] has disputed some of the labor charges o[n] that bill.
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28) [Robert] and or his employees performed all of the work on [John’s] house that [Robert] billed [John] for, with the exception of a charge for eight hours of [Robertas time on July 28, 2003. [1051]*105129) [Robertas bill should be reduced by $200 to account for the error on July 28, 2003.
30) [Robert] paid for the materials that he charged [John] for, and the materials were used on [John’s] house.
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34) [Robert] has incurred attorney fees and charges to foreclose his mechanic’s lien in the amount of $12,130.
35) Interest on the sum of ... $13,783 at 8% from November 9, 2003 through December 14, 2007 is $1,208.34.
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39) [John] stated at trial that [the Hayeses] did not suffer monetary loss due to the duration of the project.

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Bluebook (online)
894 N.E.2d 1047, 2008 Ind. App. LEXIS 2264, 2008 WL 4594114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayes-v-chapman-indctapp-2008.