Lenslite Co. v. Zocher

388 P.2d 421, 95 Ariz. 208, 1964 Ariz. LEXIS 318
CourtArizona Supreme Court
DecidedJanuary 8, 1964
Docket6961
StatusPublished
Cited by25 cases

This text of 388 P.2d 421 (Lenslite Co. v. Zocher) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lenslite Co. v. Zocher, 388 P.2d 421, 95 Ariz. 208, 1964 Ariz. LEXIS 318 (Ark. 1964).

Opinion

STERLING, Judge of the Superior Court.

This is an action to foreclose mechanics’ and materialmen’s liens. A general contractor, Martin Zocher, and two subcontractors, Ernest Cannon and Arizona York Refrigeration, sued Lenslite Company, Inc., and George M. Cressaty, dba Lenslite Company, Inc., and as an individual. The parties stipulated that any judgment which might be entered against any defendant might be entered against all defendants.

The lower court, sitting without a jury, awarded the following judgments for plaintiffs: $1,415.33 for Zocher; $2,529.97 for Cannon; and $675 for York. The lower court also ruled that these amounts constituted liens on defendants’ property and awarded judgment that these liens be foreclosed as provided by law. This appeal followed.

One of the appellants owned a large adobe structure located in Maricopa County, Arizona. This structure had been partially remodeled before Zocher was hired around February 1, 1957. . Zocher was hired to put in partitions, finish the walls, repair part of the roof, install heating and air conditioning along with ducts, complete the already *211 existing electric wiring system, and do other miscellaneous work. No plans and specifications were provided for the work to be done. Zocher, a duly licensed contractor, was hired by oral agreement with Cressaty to serve as general contractor in connection with the remodeling. Work commenced on the roof of the old structure the following day and thereafter other work proceeded on directions from Cressaty from day to day. Zocher was on the job once or twice each day the work was in progress, for a period of one to four hours, as the circumstances demanded. Zocher supervised the work, observed the materials used and checked the bills and invoices as they were presented. Zocher’s compensation was to be cost plus 10%. Costs were not defined.

Zocher did some of the work and subcontracted out other portions of the work. Among the subcontractors were the plaintiffs, Cannon and York. Cannon did the electrical work and York did the heating and air conditioning. Cressaty left Arizona sometime in early April, approximately two months after word commenced. The work ended April 4, 1957.

Zocher paid the various subcontractors and materialmen a total of $6,119.70. Cres-saty paid directly to miscellaneous mate-rialmen and subcontractors $2,105.05. In addition to these sums paid, there remained a balance due York of $675 and a balance due Cannon of $2,529.97. Zocher paid out for labor on the job a total of $2,671.69, making a total cost of labor and materials expended on the job of $14,101.40. Zocher’s agreed compensation of cost plus 10% or $1,410.14 added to this figure makes a total of $15,511.54.

Appellants paid directly to Modern Glass $1,839.04 and paid directly to State Chemical Co. $266. In addition, Zocher was paid $7,400 and $1,211.70 was paid jointly to Zocher and various subcontractors and materialmen, making a total paid out by the appellants of $10,716.74, leaving a total balance due the three plaintiffs of $4,794.80, exclusive of Zocher’s claim of 10% of his labor charges to cover a pro rata share of insurance, social security and payroll taxes.

The lower court awarded Cannon the amount of his corrected bill ($2,529.97) and York its claimed unpaid balance of $675 which, when deducted from $4,794.80, leaves a balance of $1,589.83 to Zocher. Since this amount to Zocher was reduced by the trial court to $1,416.33, the trial court disallowed certain unspecified items constituting part of Zocher’s claim.

Appellants contend that the trial court erred in adjudging that Zocher was entitled to recover on the ground that the judgment in his favor is not supported by any substantial or competent evidence and that Zocher failed to prove the reasonable value of his labor and material costs. Appellant argues, first, that since Zocher failed *212 to minimize costs and keep accurate records he failed to prove reasonable value of labor and material; secondly, that plaintiffs failed to prove Zocher’s material costs and his subcontractor’s labor and material costs, as well as Zocher’s direct labor costs. Under this assignment of error, appellant argues that a contractor, under a “cost plus 10%” contract, owes the duty to the owners to use every effort to minimize costs of labor and materials and to keep accurate accounts and that such contractor’s obligation is virtually a fiduciary obligation toward the owner, based on the trust placed in his integrity, ability and industry. Appellants then contend that a general contractor may only recover the reasonable value of such costs.

The facts of this case differ greatly from the fact situations in the cases cited by appellants as cases of “cost plus” contracts. Those cases deal with the usual situations and conditions existing under cost plus contracts. Therein the contracts are usually in writing, with plans and specifications furnished and the contractor is an independent agent in producing the desired results. But in the instant case, while Zocher was a general contractor and was operating under an oral “cost plus” contract without plans or specifications for the work to be done, he actually was a foreman or superintendent working under the direct supervision of Cressaty. Cressaty was on the job more than Zocher. Cressaty undertook to direct the workmen as to each phase of the project. Appellants’ proposition of law is therefore not applicable in this case. Cressaty knew or could have known, not only the progress of the work, but the cost also.

The law of this state is well settled that, as between the contracting parties in such litigation, the contractor, being in privity with the owner of the property, is not limited to the reasonable value. Such a contractor, upon the completion of the contract, is entitled to a lien for the contract price. See Parker v. Holmes, 79 Ariz. 82, 284 P.2d 455, 51 A.L.R.2d 1005.

Appellants, in effect, claim that the trial court erred in its ruling on the conflicting evidence on the issues. While we acknowledge that reasonable men might differ on the conclusions to be drawn from the evidence, we will not disturb on appeal the rulings of the lower court based upon conflicting evidence where there is reasonable evidence in the record, as in this case, to support the finding of the trial court. Eagle-Picher Mining and Smelting Co. v. Myer, 68 Ariz. 214, 204 P.2d 171; Mollohan v. Christy, 80 Ariz. 141, 294 P.2d 375; Bohmfalk v. Vaughan, 89 Ariz. 33, 357 P.2d 617; Rossi v. Stewart, 90 Ariz. 207, 367 P.2d 242.

The appellants next claim that it was error to permit Zocher to include and prove as his costs the following: (a) the *213 billing prices received by Zocher from contractors and materialmen rather than the actual work done and materials supplied; (b) the value of materials purchased separately by defendants; (c) social security, unemployment compensation, insurance premiums and repair charges in support of this assignment. We disagree.

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Bluebook (online)
388 P.2d 421, 95 Ariz. 208, 1964 Ariz. LEXIS 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lenslite-co-v-zocher-ariz-1964.