Humphreys County v. GUY JONES, JR. CONST. CO.

910 So. 2d 1129, 2005 Miss. App. LEXIS 202, 2005 WL 646652
CourtCourt of Appeals of Mississippi
DecidedMarch 22, 2005
Docket2003-CA-02495-COA
StatusPublished
Cited by3 cases

This text of 910 So. 2d 1129 (Humphreys County v. GUY JONES, JR. CONST. CO.) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Humphreys County v. GUY JONES, JR. CONST. CO., 910 So. 2d 1129, 2005 Miss. App. LEXIS 202, 2005 WL 646652 (Mich. Ct. App. 2005).

Opinion

910 So.2d 1129 (2005)

HUMPHREYS COUNTY, Mississippi, Appellant
v.
GUY JONES, JR. CONSTRUCTION CO., INC., Appellee.

No. 2003-CA-02495-COA.

Court of Appeals of Mississippi.

March 22, 2005.

*1130 Paul Mathis, Jr., attorney for appellant.

James W. Burgoon, Jr., Greenwood, attorney for appellee.

Before BRIDGES, P.J., IRVING and MYERS, JJ.

MYERS, J., for the Court.

¶ 1. This case originates in Humphreys County based upon a contract dispute between the county and Guy Jones, Jr. Construction Co., Inc. Jones contracted with Humphreys County to construct a multipurpose building in Belzoni, Mississippi for a fixed price of $254,000. During construction, at least one change order was executed, which brought the final contract price to $289,303.80. The final contract price is not in dispute, but, whether or not the trial court erred by assessing interest, costs, and attorneys' fees against Humphreys County for their delay in payment is at issue.

STATEMENT OF FACTS

¶ 2. On February 14, 2000, Humphreys County entered into a construction contract with Guy Jones, Jr. Construction Co., Inc. for the construction of a multipurpose building in Belzoni, Mississippi. The construction contract which the parties entered, indicated that the multipurpose building was to be constructed at a fixed contract price of $254,000 which was to be funded by Humphreys County and several federal grants.

¶ 3. The written contract contained a provision stating that the project was to be paid for using monthly progress payments, which were to be made after an application for payment was received by the architect. Application for payment was to be received no later than the twenty fifth of each month and payment was then due by the tenth of the following month. In the event *1131 that application for payment was received after the twenty fifth, payment was due within fifteen days after receipt of the application for payment.

¶ 4. On August 16, 2000, as a condition of the federal grants, the Rural Development Agency conducted a pre-construction conference where certain responsibilities of rural development were discussed, one of which was to accept or reject partial payment estimates and to monitor the funds. Due to Jones's presence at this meeting, the trial court found that the company was put on notice that the partial payments, having to be approved by the Rural Development Agency, would probably not conform to the provisions of the contract, in regards to the date of payment. The trial court further found that the pre-construction conference acknowledgment page specifically stated that the conference did not modify any existing contract or agreement and that neither party had taken any action to reconcile the possible conflict in the payment schedule. Thus, the trial court found that the progress payments as discussed above governed payment under the contract.

¶ 5. At trial, Humphreys County argued that federal regulations apply to the timeliness of payments, which would preempt the application of state law, but the trial court found that Humphreys County failed to provide any evidence in support of their theory and the contract was indeed governed by state law.

¶ 6. In accordance with state law, the trial court awarded Jones a total of $8,160.71 in interest, costs, and attorneys' fees. The trial court found that pursuant to Mississippi Code Annotated § 31-5-25 (Rev.2000), Jones was entitled to interest in the amount of $3,482.41 for Humphreys County's untimely payments for the second and fourth installments. The trial court also found that Jones was entitled to interest on the final payment pursuant to Mississippi Code Annotated § 31-5-25 from June 10, 2002 to April 30, 2003, a total of 325 days, for an amount of interest of $3,406.16. Furthermore, the trial court found that pursuant to Mississippi Code Annotated § 31-7-309 (Rev.2000), Jones retained an attorney to collect interest due on partial and final payments and was entitled to recovery of attorneys' fees in the amount of 25% of the awarded judgment, which brought the entire amount awarded Jones to $8,160.71.

¶ 7. Aggrieved by the trial court's ruling, Humphreys County appeals, raising the following issue:

I. WHETHER UNDER THE TERMS OF THE FIXED PRICE CONTRACT, JONES IS ENTITLED TO INTEREST, COSTS, AND ATTORNEYS' FEES FOR DELAYED PAYMENTS.

¶ 8. Finding no error, we affirm.

LEGAL ANALYSIS

I. WHETHER UNDER THE TERMS OF THE FIXED PRICE CONTRACT, JONES IS ENTITLED TO INTEREST, COSTS, AND ATTORNEYS' FEES FOR DELAYED PAYMENTS.

STANDARD OF REVIEW

¶ 9. Reviewing the construction of contracts involves questions of law that are committed to the court rather than the fact finder. Warwick v. Gautier Utility Dist., 738 So.2d 212, 215(¶ 8) (Miss.1999) (citing Mississippi State Highway Comm. v. Patterson Enters., Ltd., 627 So.2d 261, 263 (Miss.1993)). Therefore, our standard of review is de novo. Id.

DISCUSSION

¶ 10. Humpheys County argues that the trial court's award of interest, *1132 costs, and attorneys' fees in the amount of $8,160.71 was improper because the source of funds for the project partially came from a federal grant. Humphreys County further argues that because a portion of these funds were federal, the guidelines, procedures, and payment requirements were under the authority of the United States government. In support of this contention, Humphreys County cites this Court to various Fifth Circuit Court of Appeals cases as well as United States Supreme Court cases which state generally that "the United States has authority to fix the terms and conditions upon which its money allotments to state and other governmental entities should be disbursed." U.S. v. Marion County School Dist., 625 F.2d 607, 609 (5th Cir.1980).

¶ 11. While Humphreys County's position stating that the United States government has the authority to fix the terms and conditions in which its grants should be disbursed is to be given due consideration, it cannot be stated that the sole source of funds, nor the specific funds in question were derived from the United States government. In the appellate brief submitted by Humphreys County it states "[t]he construction of the multipurpose building was funded through county and several sources of federal grant funds, including the United States Department of Agriculture, Rural Development Agency." It is not argued that the federal government was the sole provider of funds for this project. In fact, the sources of the funds are alluded to in the brief but there is no mention of the percentage of the total purchase price each source contributed. Thus, it is unclear from the record which portion of the funds were derived from the federal government and which portion of the funds were provided by the county.

¶ 12. What is clear from the record and from the appellate briefs submitted for this case is that the parties agreed to a fixed contract price of $254,000 for the construction of a multipurpose building to be located in Belzoni, Mississippi. Further, it is clear that a change order was made to the contract which increased the total cost of the project to $289,303.80. The source from which the funds for the increased price of the project were to be derived was not established.

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Bluebook (online)
910 So. 2d 1129, 2005 Miss. App. LEXIS 202, 2005 WL 646652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humphreys-county-v-guy-jones-jr-const-co-missctapp-2005.