Hipple v. Mason

127 A. 383, 147 Md. 94, 1925 Md. LEXIS 81
CourtCourt of Appeals of Maryland
DecidedJanuary 14, 1925
StatusPublished
Cited by5 cases

This text of 127 A. 383 (Hipple v. Mason) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hipple v. Mason, 127 A. 383, 147 Md. 94, 1925 Md. LEXIS 81 (Md. 1925).

Opinion

Urner, J.,

delivered the opinion of the Court.

A building agreement between the firm of Mason & Fox, as contractors, and W. O. Hippie, as owner, providing for the construction of an addition to the owner’s public garage in Baltimore, included the following stipulations:

“The owner agrees to pay the contractor in current funds for the performance of the contract as follows: 6% on the total cost of the operation-; the- contractor agrees to guarantee the cost of the building, exclusive of the plumbing, heating, electric wiring and fixtures, not to exceed the sum of twenty-eight thousand,- one hundred and sixty ($28,160.00) dollars, for the work as shown on drawings and as per the contractor’s estimates of January 8, 1921, and September 27, 1921, and any saving of any money under the guaranteed amount ($28,160.00) shall revert back to the owner, subject to any and all additions and deductions that may be agreed upon between the owner and centractor in writing, and to make payments thereon as follows:
When foundation walls are in place......$5,600.00
When brick walls are in place to 2nd
floor level .......................... 7,400.00
When roof is on and flashed............. 7,000.00
When building is completed, a sum not to exceed .........................
8,160.00
*97 “All of the above payments are for 90% of the work in place. The final payment shall be made within 80 days after the acceptance of the building by the owner.”

When the work under the contract; had so far progressed that the roof of the new building was on and flashed, and when the third of the specified payments was due, a dispute arose as to the amount which the contractors were then entitled to receive. The controversy was mainly .the result of a difference of opinion in regard to the interpretation of the provision that the payments mentioned in the contract “are for 90 per cent, of the work in place.” It was the contention of the contractors that they were entitled to be paid the amounts designated in the agreement as the work advanced to the respective stages therein described, while the owner’s theory was that only ninety per cent, of the stated amounts was payable at the periods specified, and that the balance was to be reserved until .the building was completed and accepted. The sum paid on account of fhe third installment was $6,134.92. The contractors claimed the right to receive at that time the full sum of $7,000 as .the .amount of the third payment contemplated by the agreement, and also the sum of $585.12 as a balance due them on the first two installments. Because of the inability .of the parties to adjust their differences the work was discontinued. There was testimony on behalf of the contractors that the owner told them to “get off the job.” This was denied by the owner. The building was completed by other contractors at a cost of approximately $4,000. The payments to Mason & Eox aggregated $17,-999.80. In this suit for the balance claimed to be due them for the work performed and the materials furnished in the erection of the building, they were awarded $4,600.34 by the verdict of a jury. The .amount of the verdict, added to the payments made to Mason & Eox and the cost of completing the garage, makes a total less than the maximum cost of $28,160, limited in the Contract from which we have quoted', *98 The defendant’s 'appeal from the judgment entered on the verdict presents for review rulings of the trial court which are the subject of twenty-four exceptions.

The principal questions iu the case are raised by groups of exceptions to rulings on evidence and prayers which were concerned with the construction of the contract under consideration in regard to the demandable amounts of the successive installments, and the right of the Contractors to he paid for additional work required' by orders of the building inspector of Baltimore and by instructions said to have been given by the defendant 'orally.

It was definitely stipulated in the contract that the builders should receive payments of-specific sums of money at three of the construction periods indicated. 'The amounts payable when the foundation walls were in place, when the walls were finished to the second floor level, and when the roof was on and flashed, were stated with precision. It was only as to the final payment that the contract was indefinite. That was not to exceed $8,160, as otherwise it would extend the total cost beyond the stated maximum1. In providing that the stipulated payments were “for 90'% of the work in place,” the contract simply estimated the excess value of the work to be completed at the times when the several amounts became payable. There was proof that when the third payment accrued it was in fact not more than ninety per cent, of the cost value of the work then finished, for which the contractors had not been compensated. The theory that only ninety per cent, of the amount stated in the contract could be claimed at the stated periods is not Consistent with the plainly expressed agreement for the payment of designated sums as the work advanced. The effect of that provision is not neutralized by the subsequent recital that the required payments were for ninety per cent, of the Work then accomplished. It was not to ninety per cent, of the payments specified, but to that percentage of the work that the contract referred. The court below was in accord with the view that the contractors were entitled to the full amount of the installment which they *99 sought to collect at the time of the discontinuance of their work ou the building, and the rulings with respect to that phase of t'he case were free of error.

The decision of the question as to whether the contractors can recover for additional work performed-under instructions of the owner .and the building inspector should not disregard the fact that it was a “cost plus” contract under which the building was being erected. The compensation of the contractors, for labor and material, was to be six per cent, of tbe actual cost, which was not to exceed -$28,160. If tbe work could be done for less than that amount, the money thus saved was to “revert hack to the--owner, subject to any and all additions and deductions that may he agreed upon between the -owner and contractor in writing * * *” This provision is said' to mean that no charge could be made for extra work unless authorized by written agreement of the parties. There was no such -agreement in reference to tbe additional brick, concrete and iron work, costing about $1,900, performed by the contractors, and for that reason their right to include the items of such work in their present claim is disputed.

It was the -purpose of the contract to express the obligation -of tbe contractors to do .the work according to the specifications, and within a stated time and cost, and tbe duty of the owner to pay in certain installments the amount of the actual cost, not exceeding the sum designated-, including ¡the contractors’ compensation of “6% on the total cost of ‘the operation,” and to assure the owner that he Would have the benefit of any reduction of tbe cost which might be feasible.

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Cite This Page — Counsel Stack

Bluebook (online)
127 A. 383, 147 Md. 94, 1925 Md. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hipple-v-mason-md-1925.