L & a DRYWALL, INC. v. Whitmore Const. Co., Inc.

608 P.2d 626, 1980 Utah LEXIS 888
CourtUtah Supreme Court
DecidedMarch 4, 1980
Docket16113
StatusPublished
Cited by32 cases

This text of 608 P.2d 626 (L & a DRYWALL, INC. v. Whitmore Const. Co., Inc.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L & a DRYWALL, INC. v. Whitmore Const. Co., Inc., 608 P.2d 626, 1980 Utah LEXIS 888 (Utah 1980).

Opinion

HALL, Justice:

Appeal from a grant of summary judgment in favor of L & A Drywall, Inc. (hereinafter “plaintiff”), against Whitmore Construction Co., Inc. (hereinafter “defendant”).

Defendant, a Utah construction company, contracted in 1972 to act as general contractor in the construction of a 66-unit apartment complex for a Mr. Vern Bowdle. Pursuant to this contract, defendant contracted with plaintiff, as subcontractor, to provide labor and materials for the drywall, aeeous-tical spray, and miscellaneous other services outlined in the architect’s plans. The initial contract price between plaintiff and defendant was $56,000.

During 1972 and 1973, various delays in construction created numerous disputes among defendant, plaintiff and Mr. Bowdle. In October of 1972, plaintiff, claiming it was owed $16,799 which defendant had not yet paid, filed a notice of lien on the project. The parties then pursued negotiations, which resulted, on May 31, 1973, in a written agreement partially disposing of the dispute involved in the subcontract. Pursuant to that agreement, plaintiff released the lien which had been filed, defendant paid plaintiff $3,100, and $12,000 was placed by defendant in a special savings account pending the determination of the issues of alleged delay and damages resulting therefrom, which issues were to be “submitted to the appropriate courts” by the plaintiff. Plaintiff then filed the present action, claiming as damages the $12,000 remaining in the special savings account created under the agreement. Defendant answered and counterclaimed, denying indebtedness to plaintiff and claiming offsets and damages for plaintiff’s delay and for the filing of an improper lien on the property.

Shortly thereafter, Mr. Bowdle also filed an action against defendant, alleging damage by reason of delays in the construction of the apartment complex. Defendant again answered and counterclaimed, asserting numerous offsets and claims of damage against Bowdle.

On January 26, 1976, plaintiff and defendant negotiated and signed an additional agreement, which forms the substance of this.appeal. Entitled “Agreement of Settlement,” the document purported “to compromise, settle and adjust said action (pending in court between plaintiff and defendant) and all matters of difference which now exist and have heretofore existed between the parties.” The agreement acknowledged the action filed by Bowdle against defendant, and expressed the parties mutual belief that the claims therein were without merit. The agreement then asserted that one half of the $12,000 in the savings account, including interest accrued thereon, should be paid immediately to plaintiff. An additional one-fourth of the amount in the account, including interest accrued, should be paid immediately to defendant. The remaining funds in the account were to remain on deposit to await distribution according to the outcome of the action filed by Bowdle. In the event that Bowdle was unsuccessful in his claims, defendant was obligated to further compensate. plaintiff under the subcontract to the extent of one-seventh of the amount saved by the defendant as a result of the outcome of the litigation with Bowdle (such amount to be paid first from the remaining funds in *628 the savings account). In the event that Bowdle was successful in his claim, all funds in the account should be paid to defendant. The agreement then provided that “(defendant) agrees not to compromise or settle said action with Bowdle in respect to said claim for failure to complete construction timely without the consent of (plaintiff); provided such consent shall not be withheld unreasonably; and provided further that in any event (defendant) may settle by payment to (plaintiff) of the additional sum of $6,000.” (Emphasis added.)

Pursuant to the agreement, plaintiff received one half of the amount on deposit, and defendant received one-fourth thereof. Thereafter, on March 23, 1976, defendant and Bowdle mutually agreed to withdraw all claims, thus totally settling the action pending between them. Plaintiff, upon learning of this settlement, immediately demanded that defendant pay to plaintiff $6,000 plus all interest thereon from the savings account, such interest amounting to $1,043.01. Defendant agreed to make the payment of $6,000, but pointed out that the language of that provision in the agreement of settlement invoked by plaintiff made no provision for the payment of interest from the savings account in addition thereto. As a result of this dispute, defendant paid no funds to plaintiff prior to July 30, 1976, on which date plaintiff filed with the court a motion for summary judgment against defendant in the action underlying the agreement of settlement. The motion, by its terms, was “based on accompanying affidavit signed by the attorney for plaintiff and the stipulation entered into between the plaintiff and defendant in this case, a copy of which is attached hereto.”

Hearing was held on August 16, 1976, at the conclusion of which the court granted plaintiff’s motion for summary judgment and awarded $6,000 plus the $1,043.01 in interest from the savings account. Defendant thereupon paid to plaintiff the $6,000 as provided in the settlement agreement, but withheld the payment of the interest funds. Defendant timely pursued a motion to alter and amend the judgment by striking therefrom the award of interest from the savings account, which motion was refused. Likewise refused was a motion to vacate the order denying defendant’s motion to alter and amend judgment. Thereupon, defendant filed notice of appeal to this Court.

Defendant’s appeal to this Court is limited to that portion of the summary judgment granting payment to plaintiff of the interest funds in the account. Such an award, claims defendant, was improperly granted on motion for summary judgment.

In reviewing the grant of a motion for summary judgment, this Court adopts the same analytical standard incumbent upon the trial court: the grant of such a motion (or the affirmance thereof) is appropriate only where there exist no genuine issues of fact relevant to the disposition of the claim underlying the motion. 1

In the present case, we are unable to agree that, in light of the above standard, the action of the trial court was proper. Plaintiff’s motion for summary judgment, by its own express terms, rested squarely upon two documents filed in support thereof: a copy of the agreement of settlement, and the affidavit of Steven C. Vanderlin-den, attorney for the plaintiff. In direct contradiction to the language of the relevant provisions of the agreement of settlement (quoted supra), Mr. Vanderlinden’s affidavit asserts that “pursuant to the formula in the agreement of settlement, if (the action between defendant and Bowdle) was dismissed with prejudice, . . . the'defendant would reimburse the plaintiff for $6,000, plus the interest accumulated in that account.” (Emphasis added.) This apparent contradiction renders totally untenable the assertion, implicit in the trial court’s grant of summary judgment, that the agreement of settlement included the payment of interest over and above the $6,000 in the event of settlement, and that such inclusion was established beyond all factual dispute.

*629

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Bluebook (online)
608 P.2d 626, 1980 Utah LEXIS 888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-a-drywall-inc-v-whitmore-const-co-inc-utah-1980.