Komraus Plumbing & Heating, Inc, v. Cadillac Sands Motel, Inc

195 N.W.2d 865, 387 Mich. 285, 1972 Mich. LEXIS 165
CourtMichigan Supreme Court
DecidedApril 6, 1972
Docket7 March Term 1972, Docket No. 53,332
StatusPublished
Cited by28 cases

This text of 195 N.W.2d 865 (Komraus Plumbing & Heating, Inc, v. Cadillac Sands Motel, Inc) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Komraus Plumbing & Heating, Inc, v. Cadillac Sands Motel, Inc, 195 N.W.2d 865, 387 Mich. 285, 1972 Mich. LEXIS 165 (Mich. 1972).

Opinion

T. E. Brennan, J.

This cause was tried before the Honorable William R. Peterson at the circuit. On May 7, 1969, Judge Peterson filed a written opinion, which was thorough, scholarly, and correctly dispositive of the issues joined between the parties. The opinion follows. We adopt it as the opinion of this Court. The decision of the Court of Appeals is reversed and judgment of the circuit court is affirmed. Costs to the appellant.

Opinion of the Trial Court.

“Plaintiff is a corporation, the president of which is Charles E. Komraus. All negotiations and events material to the case were handled by Mr. Komraus, and for purposes of simplicity, he will be referred to as plaintiff hereafter.

“In the spring of 1968, defendant planned a subtantial addition to its physical plant. The third party defendant, Ken-Bar Construction Company, Inc., entered into a contract with defendant to do the work as general contractor. Ken-Bar’s supervisor, Howard Reynolds, provided plaintiff with plans for the addition and invited a bid from plaintiff as plumbing and heating sub-contractor. In the course of preparing to submit an offer to Ken-Bar, plaintiff consulted with his insurance agent regarding insurance requirements and a performance bond. The agent cautioned plaintiff that Ken-Bar would have difficulty furnishing a performance bond, and that Ken-Bar’s condition was questionable. The agent advised plaintiff to deal directly with the owner.

“Acting on this advice, plaintiff prepared an offer dated April 29, 1968, and procured a performance bond. The offer was, by its terms, addressed to ‘Vernon Vincent, Cadillac (sic) Sands Motel,’ and was delivered by plaintiff to Reynolds of Ken-Bar, *288 to be transmitted to Vincent. Reynolds in turn gave it to Ken-Bar’s president, Harold Brickner, who presented it to Vincent at Cadillac on April 30th. It may be noted that Vincent was not personally the owner of the property in question, but is president of the corporate owner and defendant herein.

“The written proposal is unambiguous, and at the bottom bears the following language:

“ ‘ACCEPTANCE OF PROPOSAL

“ ‘The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.’

“The proposal was returned to plaintiff without alteration or addition bearing the following beneath the above quoted language of acceptance:

“ ‘Accepted Ken-Bar Const. Co., Inc.

“‘Date: 4/30/68

“ ‘Signature Harold Brickner — Pres.

“ ‘Signature Vernon Vincent — Pres.

“ ‘Cadillac Sands Motels, Inc.’

“Plaintiff insists, and the court believes, that he never intended to submit the offer to Ken-Bar. Ken-Bar’s acceptance might have amounted to a counter-offer which plaintiff might have accepted, but this was not done and the execution of the acceptance by Ken-Bar did not give rise to a contract between it and plaintiff. Ken-Bar’s acceptance is irrelevant, and had no legal consequences.

“Vincent’s signature to the acceptance is admitted, but defendant contends that it was not an actual acceptance and did not create a contract (1) because Vincent executed the acceptance without intending to contract with plaintiff, and (2) because the signature was added in a corporate capacity while the offer was direct to him personally.

“As to the latter point, this is essentially a question of identity in legal form and not a situation *289 where an offer was directed to a clearly identified person and acceptance was claimed to have been made by a different person. "Were plaintiff to hold Vincent personally, the point would be well taken.

“As to the effectiveness of the acceptance, the Court is satisfied as to the truth of Vincent’s testimony that he intended to deal only with one general contractor and did not intend to make a separate contract with plaintiff. Brickner presented plaintiff’s proposal to Vincent with Brickner’s apparent acceptance on behalf of Ken-Bar, already written thereon. Brickner told Vincent that Vincent’s signature was necessary in order to get a performance bond. The court does not believe Brickner’s testimony that he had been told by plaintiff that Vincent’s signature was needed only for that purpose. It is true, however, that Brickner told Vincent that he was to sign only for that purpose, and that Vincent signed the acceptance only upon Brickner’s assurance that there would be no separate contract between defendant and plaintiff. It might also be added that the matter of performance bonding was of great concern to Vincent at the time because of Ken-Bar’s problems in getting bonds, and because such bonding was a prerequisite to Small Business Administration approval of defendant’s loan application. Vincent’s conduct at all times thereafter is consistent with an assumption on his part that there was no direct contract with plaintiff and that plaintiff was only a subcontractor.

“The trouble with defendant’s contention that there was no meeting of the minds so as to create a contract, is that the usual objective tests of offer and acceptance are satisfied by Vincent’s deliberate act in executing the acceptance, which was returned to plaintiff without explanation. By an objectively unequivocal acceptance, the acceptor is bound thereby and not permitted to avoid the consequences of his acceptance by proving that he didn’t mean it, or didn’t know or understand the terms of the offer, or *290 was mistaken about the legal consequences of the contract.

“In International Transportation Association v. Bylenga, 254 Mich 236, [1931], at p. 239, the court said:

“ ‘This court has many times held that one who signs a contract will not be heard to say, when enforcement is sought, that he did not read it, or that he supposed it was different in its terms. Gardner v. Johnson, 236 Mich 258 [1926]; Draeger v. Kent County Savings Ass’n., 242 Mich 486 [1928]; Powers v. Indiana & M. Elec. Co., 252 Mich 585 [1930]. But the general rule announced in those cases is not applicable when the neglect to read is not due to carelessness alone, but was induced by some stratagem, trick, or artifice on the part of the one seeking to enforce the contract.’

“See also 17 C.J.S., p 672 (s 41 (f) Contracts); Collier v. Stebbins, 236 Mich 147 [1926]; Crane v. Smith, 243 Mich 447 [1928]; and Renard v. Clink, 91 Mich 1 [1892].

“Another side of the same question is presented by the parol evidence rule which says that parties who contract in writing are conclusively presumed to have intended what they have written, as their complete agreement, so that they may not offer parol testimony to vary or contradict their writing. In Adair v. Adair, 5 Mich 204 [1858], at p 209, the court said:

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Bluebook (online)
195 N.W.2d 865, 387 Mich. 285, 1972 Mich. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/komraus-plumbing-heating-inc-v-cadillac-sands-motel-inc-mich-1972.