Johnson Storage & Moving Co. v. Victory, Inc.

774 P.2d 636, 1989 Wyo. LEXIS 137, 1989 WL 55205
CourtWyoming Supreme Court
DecidedMay 26, 1989
Docket88-320
StatusPublished
Cited by3 cases

This text of 774 P.2d 636 (Johnson Storage & Moving Co. v. Victory, Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson Storage & Moving Co. v. Victory, Inc., 774 P.2d 636, 1989 Wyo. LEXIS 137, 1989 WL 55205 (Wyo. 1989).

Opinion

URBIGKIT, Justice.

This controversy concerns an installation contractor who entered into a purchase order agreement to provide a fire alarm system for a warehouse facility. Whether the agreement included not only the warehouse area but also the office area was litigated in district court and the adverse decision to the warehouse facility owner is now appealed. The defined issue is whether completion costs should have been allowed against the contractor to extend the system throughout the office area on a warranty of suitability.

We affirm.

A representative of Johnson Storage and Moving Company (Johnson Storage), appellant, called the owner of Victory, Incorporated, d/b/a High Plains Security Systems (High Plains), appellee, for a quote to install a fire alarm system in its Cheyenne, Wyoming warehouse facility. High Plains submitted a bid proposal dated February 4, 1987 in the amount of $4,675. The job location box at the top of the bid only stated “warehouse” and, in descriptive terminology, provided for the installation.

We hereby submit specifications and estimates for:

1 MP-24 Fire lite fire alarm panel complete w/2 detection zones & rechargeable batteries
8 10" Fire alarm bells (2 interior, 1 exterior)
24 BRK1824-H Smoke detectors w/built in heat detectors (6 in west end & 18 in east end of warehouse)
1 Multi-channel digital communicator programmed to contact central station (there is a 25.00 monthly monitoring fee for the 2 zone monitoring service) Conduit, fittings, boxes, wire
All equipment is guaranteed by manufacturer for one year.
This will meet or exceed any I.S.O. requirements.[ 1 ]

This proposal was accepted, creating the contractual dispute present in this appeal. The smoke detectors and equipment were duly installed in the warehouse using equipment and methods admittedly meeting or exceeding I.S.O. requirements for the warehouse area. (Insurance Service Office — a fire insurance rating agency.) No insufficiency as installed is presented. A billing following completion of installation was paid in full for the bid price.

However, when Johnson Storage applied for the desired reduced fire insurance rates it was turned down. Johnson Storage was told the reduction would be available only if the office area was also equipped with a fire alarm system since I.S.O. required 100 percent coverage for a building. This meant adding more zone panels and installing an appropriate number of smoke detectors in closets and offices located in the facility. The estimated cost for the additional system was about $6,000 more than the original bid of $4,675.

*638 Johnson Storage demanded that High Plains install the extended system without additional charge in order to comply with the installer’s completion warranty. The demand was rejected and another contractor bid the further installation at a price of $6,995. Johnson Storage filed suit claiming installation contract breach and failure to complete with claimed damage including:

A. Loss of insurance rate credits in the past, through and including April of 1987.
B. Loss of insurance rate credits incurred subsequent to the filing of this Complaint and prior to the entry of a judgment in this matter.
C. Lost profits.
D. Loss of rental value of the storage facility.
E. Cost of completing an I.S.O.-approved fire detection system.[ 2 ]

Following trial, the district court found that Johnson Storage showed recoverable damages of $978.15 for lost insurance rate credits to which $500 was added as sanction attorney’s fees which arose from a procedural claim. It is from this judgment of $1,478.15 that Johnson Storage appeals. 3 Johnson Storage filed a motion to alter or amend the judgment under W.R.C.P. 59(f) on the basis of insufficient damages being awarded, including specific objection that completion costs were not included. After further extensive briefing, the district court denied the motion in an opinion letter which afforded this rationale:

It may be that a more appropriate disposition of this case would have been to find that there never was the requisite “meeting of the minds” as to the work to be done. Clearly, under the evidence, plaintiff and defendant both thought at the time of the initial meeting referred to above, that the system would be installed in only the warehouse portion of the facility and not in the other areas.
The evidence would justify such a finding but would require plaintiff to bear all of the burden of the apparent misunderstanding. Fairness requires that we try to “fine tune” justice more than that. If defendant had known, which he should have known, that the ISO requirements would mandate the alarm system being in all parts of the facility, he would have said so at that initial meeting and obviously a more extensive and commensurately more expensive system would have been contemplated by both parties. Because he did not know that and because plaintiff indicated the system would be only in the warehouse portion, it was done in that fashion. It would seem to me that to now award plaintiff, on the basis of the evidence, the cost of installing the system in the nonware-house portions would be to give the plaintiff not the “benefit of his barg[a]in” but rather an unjustifiable windfall by requiring the defendant to provide materials and labor for an expanded system never mutually contemplated by the parties.
But because the defendant should have known that the more extensive system would be required, I think it is fair that he pay the difference in ultimate insurance costs during the time the more extensive system was not installed. Interestingly, at the time of trial, plaintiff had never completed the system.
Law requiring defendant to bear the cost of extending the system into the non-warehouse portions of the facility would be law requiring an unfair result. Accordingly, the motion to alter or amend judgment is denied.

The starting point for our analysis of this written purchase order agreement is with the document itself.

The determination of the parties’ intent is our prime focus in construing or interpreting a contract. State v. Moncrief, 720 P.2d 470 (Wyo.1986); Amoco Production Co. v. Stauffer Chemical Co. of Wyoming, 612 P.2d 463 (Wyo.1980). “If an agreement is in writing and the lan *639 guage is clear and unambiguous, the intention is to be secured from the words of the agreement.” Nelson v. Nelson, 740 P.2d 939

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Metropolitan Mortgage & Securities Co. v. Belgarde
816 P.2d 868 (Wyoming Supreme Court, 1991)
Skeoch v. Electri-Center
778 P.2d 104 (Wyoming Supreme Court, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
774 P.2d 636, 1989 Wyo. LEXIS 137, 1989 WL 55205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-storage-moving-co-v-victory-inc-wyo-1989.