Kern v. Maytag Company

116 N.W.2d 430, 254 Iowa 39, 1962 Iowa Sup. LEXIS 587
CourtSupreme Court of Iowa
DecidedJuly 24, 1962
Docket50614
StatusPublished

This text of 116 N.W.2d 430 (Kern v. Maytag Company) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kern v. Maytag Company, 116 N.W.2d 430, 254 Iowa 39, 1962 Iowa Sup. LEXIS 587 (iowa 1962).

Opinion

*40 Oliver, J.-

— Plaintiff, Edward S. Kern, of Minneapolis, Minnesota, furnishes and installs floor and wall coverings in buildings, under the name of The Kerntile Company. Defendant Arthur H. Neumann & Bros., Ine. is a construction company located at Des Moines. As principal contractor, it had contracted with the property owner, defendant The Maytag Company, to furnish the labor and materials for the construction of an addition to and the remodeling of an office building in Newton. -

September 8, 1958, plaintiff Kern and defendant Neumann, Inc., executed a contract upon a printed form, entitled, “Uniform Subcontract”, in which Kern agreed to “furnish labor, material and equipment to install, complete, all composition floor covering and a portion of the Vinyl cove base required for the above building, in strict accordance with the Base Bid”, Alternate No. 1 and Addenda No. 1 and No. 2 of the general contract, and with the architect’s plans and specifications, and subject to the architect’s approval. The subcontract recited it was made to enable the contractor to carry out the general contract and that all the terms and conditions contained in the general contract and the plans and specifications were a part of the subcontract, and particularly that the work and materials would be subject to the provisions of the general contract, plans and specifications with respect to approval or rejection by the architects.

Kern performed most of the subcontract but left it incompleted June 15, 1960. Thereafter Neumann engaged Krantz Brothers of Des Moines to complete it, on a cost-plus basis. Kern’s contract price for labor and materials was $59,022, not including some extras. Neumann had paid $54,982.91 on the contract. Kern filed a mechanic’s lien for $7873.70- and brought this suit in equity against Neumann, Ine., and The Maytag Company to establish and foreclose said lien. Defendant Neumann counterclaimed for damages for the expense of completing plaintiff’s subcontract.

Trial resulted in judgment disallowing plaintiff’s claim and allowing the counterclaim of defendant Neumann against plaintiff in the amount of $2,340.85 with interest and costs. Plaintiff has appealed.

I. Before the subcontract was signed Neumann at one time had discontinued the negotiations because Kern refused to *41 furnish a performance bond. That matter was adjusted by the insertion of the following provision in the subcontract:

“It is agreed that all payments to be made by the contractor under the terms of this subcontract that cover the purchase of materials by the subcontractor shall be paid for by a check made out jointly to the Subcontractor and his material supplier. * * # »

Continuing, the subcontract provided:

“The subcontractor agrees to keep the job site free from accumulations of waste materials caused by his employees or work, and upon completion of his work to remove all his rubbish, tools, scaffolding and surplus materials from the building site.”

The subcontractor agrees to: “Begin work in the new portion of the building on approximately April 1, 1959, and complete all work in this part by approximately June 1, 1959, begin work for the remodeling of the existing building on approximately October 1, 1959, and complete all work by approximately November 15, 1959.

. “In ease the subcontractor after five (5) days written notice by the contractor refuses to or cannot complete the several portions as above stated, the contractor reserves the right to hire the work done and deduct the cost of said work from the amount due to the subcontractor under this contract.”

The contractor agrees to pay the subcontractor, in monthly payments, $59,022, “for said materials and work, said amount to be paid'as follows: ninety per cent (90%) of all labor and material which has been placed in position by said subcontractor, to be paid on or about the fifteenth of the following month, except the final payment, which the said contractor shall pay to the subcontractor within thirty days after the subcontractor shall have completed his work to the full satisfaction of said architect and/or owner and satisfactory evidence that all obligations have been paid.”

Kern’s men worked from April 13 to April 29, and from June 7 to August 26, 1959, from February 29 to April 4, 1960, and from May 3 to June 15, 1960. Then they left the job unfinished.

' The tile and other materials for the subcontract were sold to Kern by Robbins Floor Products, Inc., Túscumbia, Alabama, *42 who shipped them consigned to “The Kerntile Co., Newton, Iowa, c/o Arthur H. Neumann & Bros., Inc., c/o Maytag Office Bldg.” Most of the shipments arrived at times when Kerntile employees were not working on this job, and Neumann’s construction foreman, Gerald E. Jacobs, signed receipts for such shipments. He testified they did not count each tile but cheeked the number of boxes containing tile and other material, piled them in the basement and covered them with a tarpaulin. Wire was placed around the bottom of the pile to keep it intact. This was in February 1959.

Neumann exercised no control nor supervision over this pile except to move it to another part of the building when the construction work later made that necessary. The expenses of unloading and of moving it were charged to and accepted by Kerntile. It appears there were additions to it of a shipment of materials from Robbins to Kerntile in July 1959, and a relatively small shipment in September 1959. Kerntile did not keep an inventory control of materials nor any record of the amounts it used from the pile.

June 8, 1960, Kern, Neumann and others attended their regular Wednesday meeting at the job site. At that time Kern told them, “that they had run out of light tile and it had been stolen.” This was followed by a demand that Neumann, at its own expense, furnish the materials necessary to complete the job. Neumann refused, gave Kern five days written notice to return to the job, as provided by the subcontract, and upon Kern’s refusal engaged Krantz Brothers of Des Moines to complete it.

Thereafter Kern filed his mechanic’s lien and instituted this suit.

II. Appellant-Kerntile and appellee Neumann are the active parties to this appeal. Although there are several areas of disagreement between them, the basic issue is, which had the legal obligation to furnish the additional tile and other materials required to complete the subcontract. The subcontract provided that appellant furnish “the labor and materials.” Therefore the burden was upon appellant to explain or excuse his refusal to furnish all the necessary materials. The trial court concluded appellant had this obligation, that appellant abandoned the *43 contract without just cause and Neumann was justified in employing Krantz Brothers to complete the work, upon appellant’s refusal to do so following the five-day notice. We agree with this conclusion.

The record shows approximately one hundred thousand square feet of tile and the material for laying the same had been purchased by appellant from Bobbins, the material supplier, delivered to this job site and placed in a pile from which appellant used it.

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Bluebook (online)
116 N.W.2d 430, 254 Iowa 39, 1962 Iowa Sup. LEXIS 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kern-v-maytag-company-iowa-1962.