Knapp v. Arko Interstate Electric Co.

1968 OK 183, 448 P.2d 996
CourtSupreme Court of Oklahoma
DecidedDecember 23, 1968
Docket41684
StatusPublished
Cited by10 cases

This text of 1968 OK 183 (Knapp v. Arko Interstate Electric Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knapp v. Arko Interstate Electric Co., 1968 OK 183, 448 P.2d 996 (Okla. 1968).

Opinion

LAVENDER, Justice.

This appeal is concerned with a judgment of the District Court of Muskogee County establishing liens claimed under the provisions of 42 O.S.1961, § 143 against certain real property located in that county.

Under date of October 18, 1961, Bill Knapp, one of the plaintiffs in error, as “owner,” entered into a written contract with Osburn Builders, Inc. (hereinafter called “Osburn” or the “contractor”), by the terms of which Osburn contracted to construct a house and garage on the land in question, according to the plans and specifications therefor as prepared by one George C. Dewel, as architect for the owner, and to complete the same within 90 workable days thereafter, for the sum of $27,618.00, payable in four installments: $2,135.00 when footing and foundation walls are in place; $11,970.25 when the house has been enclosed, roof in place, cornice and any siding in place, and has had prime coat of paint, plumbing roughed in, wiring roughed in, heat ducts in place, garage floor in place, wall ties for brick and flashing in place, and wall installation in place; $1,733.00 (which would bring the total payments to $15,838.25) when attic insulation is in place, sheetrock in place and joints “taped out,” and all of the heating equipment in place and working, with the balance due and payable within fifteen *999 days after completion and acceptance of the job. Thereafter, by written change orders, the contract price was increased by $372.57 to $27,990.57.

The contractor employed a number of workmen on the project, purchased materials from various suppliers, and subcontracted various portions of the contract work. Prior to completion of the contract work, and on or about March 23, 1962, the contractor stopped work on the project and, as a result thereof, the owner caused to be served on the contractor on April 2, 1962, the following notice:

'NOTICE
“To: Osburn Builders, Inc.
“Take notice that unless within ten days you resume work on that certain contract entered into between you and me on the 18th day of October, 1961, and complete the same with reasonable diligence and in a workmanlike manner, I will declare the said contract terminated and employ another contractor to complete the same, and deduct from payments which would otherwise become due to you the amount necessary to pay such other contractor and all bills for labor and material heretofore incurred by you. This action on my part is occasioned by the fact that you have done nothing toward completing the contract since March 23, 1962, and I interpret your inaction as an abandonment of the contract by you. The ten day period referred to above will comence to run from the date service of this notice is made upon you.”

Then, on April 6, 1962, an instrument signed by the contractor and reading as follows was served upon the owner:

“ANSWER TO BILL KNAPP’S NOTICE
“Osburn Builders Inc., denied it has breached the contract and requests that Bill Knapp comply with said written contract and specifications in the following respects to wit:
“1. That Bill Knapp makes adjustment for excavation of solid rock for storm cellar (original plans) 2' depth x 15' width x 27' length (29 cu. yds. at $30.00) -$870.00
“2. That Bill Knapp makes adjustment for excavation of solid rock in footings (6 cu. yds. at $30.00) - 180.00
General specifications Paragraph 1, Line 4 ‘Contractor to examine site and satisfy himself of all conditions’ (Bill Knapp assured W. Guy Osburn that he and Rufus Horn had drilled holes all over the property and had not hit any rock)
“3. That Bill Knapp pays for planter box not shown on the set of plans used by W. Guy Osburn to figure the estimate for the job. (material & labor) - 27.00
“4. That Bill Knapp accepts the present brick work that has been completed to date (approximately 40% complete). Brick work complys with the terms of the contract and general specifications in that it would be acceptable to Federal Housing Administration and would pass their requirements, (general sped- *1000 fications Paragraph 6, line 5), and Osburn Builders Inc., demands that Bill Knapp does not disturb the brick work done hereunder until all payments due under this contract have been paid to him.
“5. That Bill Knapp extends the completion date 45 workable days from the date this disagreement is settled.
“6. That Bill Knapp pays an adjustment for brick work delays & damage caused by demands he made in excess of contractual obligations:
Materials $225.00
Labor 314.00
_539.00
“7. That Bill Knapp pays for changes he has authorized in plans & specifications to wit:
Change in plans (Storm cellar to fall out shelter) increased depth 2' in solid rock (29 cu. yds. at 30.00)- 870.00
Changed Plumbing Contractors - 25.00
Waterproofing added to cement - 24.00
Sheetrock garage walls - 86.29
Waterproof membrane- 83.14
Living room cabinet - 144.72
Moving dishwasher space - 12.00
Adding cabinet door on family room side- 11.50
Demanding better masonry job than specified (increased labor contract 25.00/m) 17,000 at 25.00/m- 425.00
Total _$3294.65
“Upon acceptance and compliance with these terms and payment for these adjustments and changes Osburn Builders Inc., will resume work and complete the job.”

The owner did not comply with these conditions so specified by the contractor, but had the architect named in the original contract inspect the work done by the contractor and specify what would be necessary to complete the contract work in accordance with the plans and specifications, and received three bids on the work so specified by the architect and entered into a contract with the lowest of the three bidders, one Harold B. Greene, to do that work for $12,159.00. That contract was fully performed by Greene, and the owner paid him the agreed price of $12,159.00.

As of March 23, 1962, when Osburn stopped work under its contract, the owner had paid to Osburn, or to Osburn and various subcontractors (who cashed the joint-payee checks involved) a total of $15,812.-65, some of which had been used to reduce the total bills of subcontractors and materi-almen, and $5,457.79 of which had been used to pay, in full, all of the workmen that had been employed by the contractor.

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Bluebook (online)
1968 OK 183, 448 P.2d 996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knapp-v-arko-interstate-electric-co-okla-1968.