Marvin Gardens Landscapers, Inc. v. E.H. Hall Contractors, Inc. (In re Marvin Gardens Landscapers, Inc.)

71 B.R. 611, 1987 Bankr. LEXIS 395
CourtUnited States Bankruptcy Court, D. Kansas
DecidedMarch 19, 1987
DocketBankruptcy No. 85-21167; Adv. No. 86-0122
StatusPublished

This text of 71 B.R. 611 (Marvin Gardens Landscapers, Inc. v. E.H. Hall Contractors, Inc. (In re Marvin Gardens Landscapers, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marvin Gardens Landscapers, Inc. v. E.H. Hall Contractors, Inc. (In re Marvin Gardens Landscapers, Inc.), 71 B.R. 611, 1987 Bankr. LEXIS 395 (Kan. 1987).

Opinion

SUPPLEMENTAL MEMORANDUM OPINION

BENJAMIN E. FRANKLIN, Chief Judge.

This matter came for trial on the plaintiff/debtor-in possession’s complaint for turnover of property on January 9, 1987. The debtor-in-possession, Marvin Gardens Landscapers, Inc., appeared by and through counsel, Rolland Exon and Greg T. Spies. The defendant, E.H. Hall Contractors, Inc., appeared by and through counsel, Gordon Gaebler and Charles E. Fowler, III. This Court heard the evidence and granted judgment in favor of the plaintiff in the amount of $13,862 for retainage and contract extras. This Court ruled against the plaintiff on its $3200 claim for traffic control. In addition, in event of appeal, this Court reserved the right to file supplemental findings of fact and conclusions of law.

On February 13, 1987, the defendant, E.H. Hall Contractors, Inc. and Western Casualty & Surety Co., filed their notice of appeal. This Court is now exercising its right to file supplemental findings of fact and conclusions of law.

FINDINGS OF FACT

Based on the pleadings, the testimony, the exhibits, and the file herein, this Court finds as follows:

1. The Court has jurisdiction over the parties and the subject matter. Venue is proper.

[612]*6122. Debtor, Marvin Gardens Landscapers, Inc., is a corporation organized and existing under the laws of the State of Kansas. The debtor’s principal place of business is in Kansas City, Kansas. The debtor is engaged in the landscaping business. Denis Viscek is the president of the company.

3. Defendant, E.H. Hall Contractors, Inc., is a Kansas corporation maintaining a place of business in Kansas City, Kansas. Ed Hall is the president of the defendant company. The defendant was the general contractor on a project known as the Southwest Trafficway. The owner of the project is the City of Kansas City, Missouri.

4. On August 9, 1985, E.H. Hall Contractors, Inc., the general contractor, and Marvin Gardens Landscapers, Inc., a subcontractor, entered into a contract for landscaping of the medium strip on Southwest Trafficway between 33rd Street and 39th Street. (See plaintiffs Exhibit 4). Marvin Gardens contracted with E.H. Hall Contractors to furnish all materials, labor, equipment and supplies to install 94 Sentry Gin-ko trees on the medium for the price of $370.

5. It is important to note that this was a general contractor/subcontractor relationship. E.H. Hall Contractors had a separate contract with the City of Kansas City, Missouri for the Southwest Trafficway project, including the medium strip. Marvin Gardens worked for E.H. Hall Contractors, not the City.

6. Marvin Gardens ordered the Sentry Ginko trees for the project from Matt Tures Nursery, and placed a $3,446.67 nonrefundable deposit on the order.

7. On or about October 14, 1985, the City contacted E.H. Hall Contractors and requested another price for doing additional work on the medium strip. Apparently, the City determined that several changes must be made in order for trees to survive in the hostile environment of a medium strip on a busy trafficway. The City asked to change the type of tree from Sentry Ginko to Chanticlear Pear, and to change the depth and process of planting which necessitated extra excavation and materials. In addition, the City extended the planting of trees two additional city blocks on the trafficway. In effect, the City asked E.H. Hall Contractors to install a total of 118 trees rather than 94 trees.

8. On October 22, 1985, Ed Hall of E.H. Hall Contractors, informed Denis Viscek of Marvin Gardens, of the changes in the project, and requested a bid for the additional work.

9. By letter of November 7, 1985, from Denis Viscek to Don Newman of E.H. Hall Contractors, Marvin Gardens submitted its bid (see plaintiffs exhibit 2). The letter stated:

As we discussed, our cost for the additional work, including, but not limited co excavation, rock, PVC pipe, topsoil, soil separator, and mulch on the original contract is $251.00 per tree. The cost to do the work complete on the preceding contract is $621.00 per tree. Additionally, because of the change in variety, we are losing our deposit on the Gingkoes; this amounts to $3446.67. This amount needs to be added to the above prices.
If you have any questions, please do not hesitate to call.

10. By letter dated November 13, 1985, from Ed Hall to James R. Batson, Construction Coordinator for the City, general contractor E.H. Hall Contractors informed the City of their change in price per tree for the additional work. The letter stated:

Per your request the price to complete the treewells as detailed on drawing dated 10-14-85 is $720.00 per each in place. This letter supercedes any previous letters concerning treewell price changes. The supplier, Marvin Gardens, also requests that a change order be additionally issued in the amount of $3446.67 which will cover their original non-refundable down payment to the tree supplier.
In addition, the price to remove the existing trees in the treewells between 33rd and 31st and replant per drawing dated 10-14-85 is $720.00 per each. Traffic control in the amount of $6760.00 is an [613]*613additional cost for the 31st to 33rd St. work portion.
It is our understanding that this new tree is to be a Chanticleer Pear tree with a 24" ball. It is further understood that City forces are to remove any grates and existing trees between 33rd and 31st Streets prior to Contractor commencing work.

The $720 cited in the letter includes the following: $370 original contract price per tree with their subcontractor, Marvin Gardens; $251 bid by the subcontractor for the additional work; and the general contractor’s markup. In effect, E.H. Hall Contractors requested at $305 change order price.

11.Sometime later in November of 1985, E.H. Hall Contractors and .their subcontractor, Marvin Gardens, met with the City at the public work’s office to discuss the new price. Ed Hall attended the meeting on behalf of E.H. Hall Contractors. George Eib and Mike Malyn attended on behalf of the City. Denis Viscek, president, and Robert Viscek, vice-president of Marvin Gardens, attended on behalf of the subcontractor, Marvin Gardens, to explain the bid for E.H. Hall Contractors. To simplify matters, Marvin Gardens discussed the price changes as they calculated them, without the general contractor’s markup. As such, the parties discussed the net change of $251 per tree rather than $305 per tree. The Visceks explained that the net changes included $150 per tree for excavation and $101 per tree for PVC pipe and cap, rock soil separator, soil, and installation. Furthermore, the Visceks explained, that on top of the $251 per tree net change, Marvin Gardens would have to be reimbursed $2,446.67, down from $3,446.67, for the lost deposit. Apparently, Matt Tures Nursery would refund $1,000 of the non-refundable deposit. The City did not question the price of $101 per tree for PVC pipe and cap, rock soil separator, soil and installation, and did not question the $2,446.67 loss of deposit. The City did, however, question the $150 per tree for excavation. The City requested that Marvin Gardens refigure the $150 price at 3-inch increments of rock and 3-inch increments of dirt.

12.

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71 B.R. 611, 1987 Bankr. LEXIS 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marvin-gardens-landscapers-inc-v-eh-hall-contractors-inc-in-re-ksb-1987.