Jerry Bennett Masonry Contractor, Inc. v. CROSSLAND CONST. CO., INC.

213 S.W.3d 733, 2007 Mo. App. LEXIS 208, 2007 WL 465517
Missouri Court of Appeals·Decided February 14, 2007·No. 27574·Published·Cited by 1 cases

Opinion

GARY W. LYNCH, Judge.

Following remand to the Circuit Court of Jasper County pursuant to this Court’s direction in Jerry Bennett Masonry, Inc. v. Crossland Construction Co., Inc., 171 S.W.3d 81 (Mo.App.2005), Jerry Bennett Masonry, Inc. (“Bennett”) appeals the judgment entered on remand by the trial court. Bennett challenges the trial court’s award of pre-judgment interest pursuant *735 to § 408.020 “from September 2, 1999[,] through and including June 3, 2004[.]” Bennett contends that the September 2, 1999 beginning date and the June 3, 2004 ending date for the assessment of interest as designated by the trial court are in error and contrary to this Court’s opinion and mandate. Finding error as to the former, but not the latter, we reverse and remand.

1) Factual and Procedural Background

The underlying action was originally brought following a dispute relating to a subcontract agreement between the respondent, contractor Crossland Construction Co., Inc. (“Crossland”), and subcontractor Bennett for masonry work Bennett performed in connection with a construction project for the Webb City R-7 School District. Jerry Bennett Masonry, Inc., 171 S.W.3d at 87. In part, Bennett sought payment of $67,057.50 withheld as “retain-age” by Crossland pending completion of Bennett’s portion of work on the project. Id. Crossland alleged that retention of this sum was justified due to extra work necessitated by Bennett’s failure to provide sufficient manpower to meet contractual deadlines and to prevent assessment of liquidated damages under Crossland’s contract with the school district. Id.

On June 3, 2004, the trial court entered judgment (“Original Judgment”). Relevant to the claims regarding Crossland’s retention of $67,057.50 due Bennett, the trial court awarded Bennett damages against Crossland “in the amount of $67,057.50, due to [Crossland’s] ‘mistakes in planning on the project;’ but determined [Crossland] was entitled to a set-off ... in the amount of $33,466.00, as a result of [Bennett’s] ‘failure to adequately provide manpower for the timely completion of the project.’ ” Id. at 88.

In the first appeal, Bennett presented nine points relied on, one of which asserted trial court error in its failure to assess prejudgment interest at the rate of 9%, as provided in § 408.020, 1 on the $33,561.50 damage award to Bennett ($67,057.50 minus $33,466.00). Id. This Court sustained that portion of Bennett’s claim, finding that “the trial court erred by not awarding [Bennett] interest at the rate of 9% pursuant to section 408.020 after [Crossland] was paid its retainage by the” school district. Id. at 90. All other claims were denied, and in all other respects the trial court’s judgment was affirmed. Id. at 100. This Court’s mandate was issued September 22, 2005, and directed “that the portion of the judgment rendered by the Circuit Court of Jasper County denying [Bennett] statutory interest on the principal sum of $33,561.50, at the rate of 9% per annum, pursuant to section 408.020, is reversed and remanded to the trial court for entry of an order consistent with the opinion of this Court herein delivered.”

Following remand, the trial court entered an “Amended Judgment” on November 21, 2005 (“Amended Judgment”), and awarded “pre-judgment interest at the rate of 9% per annum on the judgment amount of $33,561.50 from September 2, 1999[,] through and including June 3, 2004, in the amount of $14,373.68.” This appeal followed.

2) Legal Principles Upon Remand

Following remand with directions by this Court, the trial court must render judgment in conformity with this Court’s mandate and opinion. Riordan v. Clark, 67 S.W.3d 610, 613 (Mo.App.2001). “[P]roceedings on remand should be in accordance with the mandate and the result contemplated in the appellate court’s *736 opinion.” Fischer v. Brancato, 174 S.W.3d 82, 86 (Mo.App.2005). Remand by this Court to the trial court effectively re-vests jurisdiction in the trial court to act as directed. Id.

3) Starting Date for Prejudgment Interest

Bennett claims that the trial court’s September 2, 1999 starting date for prejudgment interest is not supported by substantial evidence and, as such, does not comply with this Court’s opinion and mandate in the first appeal to award prejudgment interest “from the date that [Crossland] was paid [Crossland’s] own re-tainage by the District.”

Upon remand in the trial court and initially upon appeal, Crossland claimed and asserted that September 2, 1999, was the date on which it “was last paid retain-age” in the amount of $100,000.00. Bennett claimed and the evidence supports that Crossland became entitled to all of its retainage from the school district “by May 21, 1999,” and was paid all but $100,000 by that date. However, the school district withheld the $100,000 which it owed to Crossland on the project in which Bennett was involved “as leverage to coerce [Cross-land] to correct roof problems on Truman Elementary School — another school project [Crossland] completed for the [school district] in 1998.” At oral argument, Crossland acknowledged that the Truman Elementary School project was unrelated to the project involving Bennett and conceded that May 21, 1999, should be the starting date from which interest should begin to accrue. We agree. “In actions for breach of contract, interest ordinarily runs from the date of the breach or the time when payment was due under the contract.” Wulfing v.Kansas City Southern Industries, Inc., 842 S.W.2d 133, 160 (Mo.App.1992). Because Crossland was entitled to receive all of its retainage from the school district on the project in which Bennett was involved on May 21, 1999, the date payment became due under the contract between it and Bennett as contemplated by this Court in its mandate on the first appeal could not have been September 2,1999.

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Jerry Bennett Masonry Contractor, Inc. v. CROSSLAND CONST. CO., INC., 213 S.W.3d 733, 2007 Mo. App. LEXIS 208, 2007 WL 465517 (Mo. Ct. App. 2007).

213 S.W.3d 733 (Jerry Bennett Masonry Contractor, Inc. v. CROSSLAND CONST. CO., INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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