James W. Thomas Construction Co. v. City of Madison

255 N.W.2d 551, 79 Wis. 2d 345, 1977 Wisc. LEXIS 1500
CourtWisconsin Supreme Court
DecidedJuly 1, 1977
Docket75-294
StatusPublished
Cited by6 cases

This text of 255 N.W.2d 551 (James W. Thomas Construction Co. v. City of Madison) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James W. Thomas Construction Co. v. City of Madison, 255 N.W.2d 551, 79 Wis. 2d 345, 1977 Wisc. LEXIS 1500 (Wis. 1977).

Opinion

DAY, J.

The plaintiff-appellant, James W. Thomas Construction Co. (Thomas), a Madison general contractor, brought suit against the defendant-respondent city of Madison to enforce a lien on the city-owned Hart-meyer Ice Arena. The appeal is from a July 29, 1975 judgment sustaining a demurrer without permission to replead. The issue is whether the amended complaint states facts sufficient to constitute a cause of action.

The facts as adduced by the complaint and the documents incorporated therein are as follows.

On August 21, 1973 the city entered into a five-year agreement with Campbell Enterprises, Inc. (Campbell), a Pennsylvania corporation, in which the city leased to Campbell the Hartmeyer Ice Arena for use by the Madison Blues Hockey Team. The contract states the team is owned and operated by Campbell. The contract recited that the city was desirous of renovating and improving the ice arena. Principal consideration for use of the facility was the payment by Campbell to the city of $25,000 each year and Campbell’s commitment to make capital improvements to the facility totaling at least $122,000. Improvements were to include, but were not limited to, renovation or improvement or creation of locker and shower rooms, player boxes, penalty boxes, concession stands, box offices, permanent seating, new lighting and plexiglass crowd protection, all in accordance with plans and specifications on file with the Parks Commission. Furthermore, any contract and subcontract *348 let by Campbell was required to include lien waivers by contractor and subcontractor “to hold city harmless in case of default by Campbell.”

Campbell was given the responsibility for management and operation of the ice arena and an exclusive use of the ice insofar as professional and semi-professional hockey was concerned. However, the Madison Blues were restricted to specific times when they could use the arena with practice time totaling not more than six hours per week. The city maintained control of and authority over allocation of ice time to other users of the arena as well as the authority to set fees for these uses. City personnel were entitled to make periodic inspections of the facility to monitor Campbell’s management. The contract further provided that “(t)itle to the described premises, the improvements thereto, existing and any new equipment, shall be in the city.”

The complaint alleges that on or about October 22, 1973, Campbell entered into a contract with Thomas requiring Thomas, as general contractor, to furnish labor and materials for the improvement of the Hartmeyer Ice Arena. Thomas performed this work, including construction of two locker rooms, an ice making machine garage, a ticket booth, skate shop, removal of old locker rooms, installation of plexiglass shields, bleachers, remodeling an “old tavern” into an office and improvement of the parking lot.

Campbell agreed to make payment on a “time and material” basis. Thomas alleged there is now due and owing $41,119.42 together with interest at the rate of one per cent per month on said sum from and after January 1, 1974. This is the amount in controversy.

March 26, 1974, within six months after the date of furnishing the last labor and materials, Thomas filed its claim for construction lien and the amount due.

*349 Pursuant to sec. 62.25 (1973), 1 Stats., Thomas filed a claim with the defendant for the foregoing sum on April 9, 1974. The complaint recites that the City Council “tabled” the claim and the Mayor, on August 27, 1974, ruled the claim was disallowed.

The action was commenced on September 24, 1974 and on February 14, 1975 the court issued an order sustaining a demurrer to the original complaint. The court, held inter alia, that plaintiff’s cause of action in quasi-contract or unjust enrichment did not lie because where statutory remedies are available, common law and equity actions are not available. A demurrer to a cause of action alleging estoppel in pais was also sustained. In the amended complaint explicit reference to these theories was deleted.

The trial court sustained the demurrer to the amended complaint, principally because it determined Campbell, in its relation to the city, was an independent contractor, a status which the court found “obviously inconsistent” with Thomas’ alternative theories that Compbell was either an agent of or a joint adventurer with the city.

On demurrer the question before the trial court was whether any cause of action had been stated on which relief could be granted. The plaintiff is bound by the facts he alleges but not his theory of recovery. Int'l Found. Emp. Ben. Plans v. Brookfield, 74 Wis.2d 544, 548, 247 N.W.2d 129 (1976); Lange v. Town of Norway, 77 Wis.2d 313, 317, 253 N.W.2d 240 (1977).

*350 A construction lien may be imposed on all interests in land belonging to its owners. Sec. 289.01 (3), Stats. 1973. “Owner” is defined in sub. (2) (d) as follows:

“289.01 Construction Liens. . . . (2) Definitions. . . . (d) ‘Owner’ means the owner of any interest in land who, personally or through an agent, enters into a contract, express or implied, for the improvement of the land. Agency will be presumed, in the absence of clear and convincing evidence to the contrary, between employer and employe, between spouses, between joint tenants and among tenants in common, but there shall be a similar presumption against agency in all other cases. . . .”

The question before this court is whether Campbell acted as an agent of the city when it engaged Thomas’ service so as to make the city an owner under the construction lien law.

We hold an agency relationship was sufficiently pleaded to survive the test on demurrer.

Paragraph thirteen of the amended complaint alleged in part, “Campbell Enterprises, Inc. was acting as an agent for the defendant (city) in contracting with the plaintiff (Thomas) pursuant to the authorization of the defendant.”

It is the settled law in this state a general statement that a party is an agent of another sufficiently alleges the existence of the agency relationship. This was discussed in Herro v. Wisconsin Fed. Surp. P. Dev. Corp., 42 Wis.2d 87, 104-105, 166 N.W.2d 433 (1969), citing Annot. (1956), 45 A.L.R.2d 586, and reiterated in St. Francis S. & L. Asso. v. Hearthside Homes, 65 Wis.2d 74, 79, 221 N.W.2d 840 (1974) and Mercantile Contract Purchase Corp. v. Melnick, 47 Wis.2d 580, 584, 177 N.W. 2d 858 (1970). Thus, the allegation of agency is sufficient to meet the demurrer challenge.

*351

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Bluebook (online)
255 N.W.2d 551, 79 Wis. 2d 345, 1977 Wisc. LEXIS 1500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-w-thomas-construction-co-v-city-of-madison-wis-1977.