Houghton v. Lawton

218 P. 475, 63 Cal. App. 218, 1923 Cal. App. LEXIS 201
CourtCalifornia Court of Appeal
DecidedJuly 26, 1923
DocketCiv. No. 4527.
StatusPublished
Cited by9 cases

This text of 218 P. 475 (Houghton v. Lawton) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houghton v. Lawton, 218 P. 475, 63 Cal. App. 218, 1923 Cal. App. LEXIS 201 (Cal. Ct. App. 1923).

Opinion

ST. SURE, J.

Defendants appeal from a judgment in favor of plaintiffs in the sum of $2,805.16. The controversy arises out of a claim of the plaintiffs that there are certain moneys due them under the terms of an agreement dated January 1, 1915. The complaint consists of three causes of action, viz.: (1) Upon an account; (2) upon an open book account; and (3) upon an account stated.

The answer admits the making of the contract, but denies the indebtedness, and sets up a counterclaim.

The counterclaim alleges that on or about December 1, 1915, the parties modified that portion of the written contract providing for a fifty per cent participation in profits and losses 'by allowing the plaintiffs to contract independently thereof for the construction and repair of the Reliance Building, and that in consideration of the waiver by the plaintiffs of their rights to participate equally in the profits and losses thereof, the plaintiffs agreed that they would pay defendants three and one-half per cent of the costs of the reconstruction and repair of said building and that the actual cost of the same was $70,000, and that three and one-half per cent of $70,000 is $2,450, which defendants are entitled to receive, and that because of this modification of the contract they are not in any manner liable for the losses on this job.

It is further alleged in the counterclaim that prior to August 1, 1916, the parties, acting under the contract of January 1, 1915, undertook the construction of a church *220 building; that prior to August 1, 1916, defendants had superintended the work of constructing the church building in accordance with the terms of the original agreement, and had in all respects complied with the contract and were ready and willing to carry out the contract and superintend and complete the construction of the church building, but were prevented from so doing by the plaintiffs, and were ousted from said work and prevented from carrying on same to completion; that thereupon plaintiffs assumed the responsibility for the further conduct of the work and carried on the same in a careless and negligent manner, whereas if the defendants had been allowed to continue the work they would have made a profit of $3,500 under said contract; that there was a profit of only $1,450 on said work, and that thereby the defendants lost the sum of $1,025.

The counterclaim further alleges that in accordance with the provisions of the agreement of January 1, 1915, and between the first day of January, 1915, and the thirtieth day of December, 1916, the plaintiffs advanced to the defendants the costs and expenses of maiptaining an office, to wit, the sum of $5;369.81; that by reason of the services performed by these defendants in the, supervising and management and construction of divers buildings, the plaintiffs received for the benefit of the defendants the sum of $8,188.98, and that there is now due and owing to these defendants, on account of the services rendered under said contract and the modification thereof, as hereinbefore set forth, and by reason of the plaintiffs having ousted the defendants from the supervision of said church as hereinabove set forth, the sum of $2,819.17.

After issue joined, and trial, the court found that the parties entered into the agreement, referred to herein as the agreement of January 1, 1915, or the original agreement; that during the time that said agreement was in force defendants did not pay all the costs and expenses in maintaining an office, nor all costs and expenses incurred or arising in estimating and bidding on all work undertaken under the agreement, nor did defendants bear fifty per cent of the losses suffered on all work undertaken under the agreement; that, on the contrary, plaintiffs paid out certain sums for costs and expenses of maintaining an office and of bidding and estimating on work; that plaintiffs have also borne cer *221 tain losses in full on work undertaken under said agreement, and that the sum so paid out and fifty per cent of the losses so borne by plaintiffs is the sum of $7,519.14; that defendants are entitled to various credits against plaintiffs amounting to the sum of $4,713.98.

The court further found that it is untrue that between January 1, 1915, and December 30, 1916, the plaintiffs, in accordance with the terms of the agreement, advanced to the defendants the sum of $5,369.81 and no more; but in this connection the court found that the plaintiffs advanced to the defendants the sum of $7,519.14 in accordance with the terms of said agreement; that tie defendants did not repay .to the plaintiffs the sum of $7,519.14 or any other sum whatsoever in excess of $4,713.98; that plaintiffs are not indebted to the defendants in the sum of $2,819.17 or any other sum whatsoever, but in this connection the court finds that the defendants are indebted to plaintiffs in the sum of $2,805.16.

The court further found in favor of plaintiffs upon the first and second causes of action stated in their complaint, and against them on the third; it further found against defendants upon their claim that the original agreement had been modified, and also against them upon their claim of the losses due to them of $1,025 on the construction of the church building.

Defendants’ first contention is that there was a special agreement made by the parties with regard to the Reliance Building repairs which reduced plaintiffs’ claim by the sum of $2,698.64. This so-called “special agreement” is mentioned in defendants’ counterclaim as an amendment, change, and modification of the agreement between the parties, dated January 1, 1915. The record shows that the following oc^ curred during the course of the trial:

“The Court: You had better proceed with the defense then. If you claim a modification of the agreement, it is up to you to prove it, I presume. Have you pleaded a modification ?
“Mr. Athearn: Yes.
“The Court: . . . Will you stipulate that we may take under advisement the broader question whether or not there was a special contract touching the Heeseman (Reliance) job, and second, whether there was an account stated between *222 Mr. Lawton and Mr. Raymond, and when the court has come to some conclusion on those matters, I will send for you and Mr. Athearn and we will arrange what, if anything, further should be done.
“Mr. Moore: That is very satisfactory.
“Mr. Athearn: We so stipulate.
“The defendants then proceeded to introduce evidence to sustain their affirmative defense of a modification of the written agreement. ...
“Thereupon pursuant to the prior stipulation the following two issues were submitted to the court for decision:
“(1) Was there a modification of the agreement of January 1, 1915, as to the Heeseman (Reliance) job?
“(2) Had an account been stated between the parties?
“On February 23, 1921, the following order appears in the minutes of the court: ‘It is ordered and adjudged that there was no modification of the contract herein and that there was no account stated. ’

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Bluebook (online)
218 P. 475, 63 Cal. App. 218, 1923 Cal. App. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houghton-v-lawton-calctapp-1923.