Matzinger v. Remco, Inc.

558 P.2d 650, 171 Mont. 383, 1976 Mont. LEXIS 554
Montana Supreme Court·Decided December 29, 1976·No. No. 13064·Published·Cited by 4 cases

Opinion

MR. JUSTICE DALY

delivered the opinion of the Court.

This appeal is from a judgment entered by the district court, Gallatin County, sitting without a jury.

Remco Inc., and Matzinger Electric entered into a written subcontract agreement providing Matzinger was to furnish necessary materials and labor for a sixty-one unit apartment complex and laundry building, known as the “Village Apartments” being constructed by Remco in Bozeman, Montana. The price for the work by Matzinger pursuant to this subcontract was $46,000. Final payment was to be made 30 days after completion of the project. This contract was signed by the parties on January 15, 1973 and work started shortly thereafter.

The project was completed for final inspection by October 1, 1973. As of January 1, 1974 Remco had paid Matzinger $41,440. On January 3, 1974 Matzinger filed a mechanic’s lien on the apartment complex for $23,538.27 claimed due for the balance owed under the subcontract plus extras and modifications claimed to have been ordered by Remco’s personnel. This lien was released in May, 1974 after Remco paid Matzinger the sum of $4,560 the balance owed under the subcontract and placed an additional $11,400 in escrow with a local title company pending the outcome of litigation of this matter.

Matzinger claims he is entitled to payment for extra work performed for Remco not contemplated by the parties at the time the contract was signed. This claim includes work allegedly authorized by Thomas Hagerty, Remco’s job superintendent in Bozeman, and by Robert Richins, project superintendent, who commuted to the Bozeman site from Remco’s Salt Lake City headquarters one or two days each week during construction.

[385]*385Specifically Matzinger claimed extra compensation due for these items:

1) Installation of weatherproof outlets on apartment building;

2) Air conditioner outlet installation;

3) Temporary lights installed for night watchmen after a fire at project during construction;

4) Hook-up of water well pump for use during construction and for repair of boilers;

5) Wiring for electric sign in front of project;

6) Installation of ground lights in area;

7) Furnishing hoods for kitchen ranges in each apartment;

8) Wiring of outlets for soft drink dispensers;

9) Wiring of swimming pool building not included in original plan;

10) Pool furnace and venting system wiring;

11) Grounding system for pool;

12) Installation of additional outlets beyond those contemplated in the contract in order to comply with local and national electrical code standards;

13) Installation of additional phone conduit omitted from the original plans and specifications;

14) Lowering of bathroom overhead fixtures and fans after installation upon discovery plumbers were unable to install plumbing according to plans;

15) Move of main electrical service from the exterior of building after installation to an interior closet to accommodate Montana Power Company plan alteration regarding location of power transformer pad; and

16) Miscellaneous items not covered by contract and done by Matzinger at request of Remco’s supervisory personnel. These extra items total a claimed amount of $13,181.71, in addition to the amount due under the contract.

A letter was sent to Matzinger by Richins, the project superin[386]*386tendent, on January 4, 1974, discussing the claim and noting Remco’s willingness to pay the amount claimed for a majority of the items. Remco’s position in the letter was that relocation of the electrical service panel and movement of bathroom ceiling fixtures was necessitated by Matzinger’s failure to coordinate his work with the other subcontractors. The letter also indicated Remco’s opinion that any extra expense incurred in installation of telephones was covered by the contract and must be borne by Matzinger. Remco’s agent stated he would require additional information regarding the expenses of wiring and grounding the pool and pool building before any claims for such work would be allowed. In total, Remco conceded it would pay $5,485.25 plus whatever was determined to be equitable for work done on the pool, in return for the release of the mechanic’s lien.

The district court found Matzinger was entitled to the $1,245 claimed for installation of the air-conditioner outlets and to $847 for the weatherproof outlets. The court held all other claims were covered by the original contract between the parties. The court also disallowed Matzinger recovery of any attorney fees for recovery on the mechanic’s lien. Matzinger’s recovery was also reduced by $1173.75, the amount the district court found to be due as an allowance on light fixtures to Remco. Matzinger appealed.

The primary issue is: Whether a written contract such as was entered into between the parties here, may be amended or modified by oral agreement?

Section 13-907, R.C.M.1947, provides:

“A contract in writing may be altered by a contract in writing, or by an executed oral agreement, and not otherwise.”

Section 13-727, R.C.M.1947, defines an executed contract:

“An executed contract is one, the object of which is fully performed. All others are executory.”

The parties agree the work for which extra compensation is sought was performed as claimed by Matzinger. This work was done for the benefit of Remco and enhanced the value of the [387]*387finished apartment complex. The disagreement between the parties is in regard to compensation for this extra work. This Court in Dalakow v. Geery, 132 Mont. 457, 464, 465, 318 P.2d 253, 257, summarized the law in Montana and said:

“Roberts v. Sinnott, 55 Mont. 369, 177 P. 252, is strikingly similar to the present case.
“That case involved a written contract to furnish certain materials and perform the work necessary for the erection of a dwelling. The plaintiff-contractor brought action upon the original agreement and each of twenty-five oral contracts supplemental thereto. The original contract contained a stipulation that no charges for extra work would be allowed unless ordered in writing, so the defendant contended there could be no recovery on the oral agreements. But this court * * * said:
‘The provision of the contract above was manifestly intended for the protection and benefit of the owner, and no reason can be suggested why it might not be waived. The authorities are quite uniform in holding that, notwithstanding such a provision, the parties may make subsequent independent oral agreements which, when executed, have the effect of modifying the original contract, and the rule has been recognized in this jurisdiction.’
“In Roberts v. Sinnot, supra, it will be noted that defendant did not in effect execute his part of the agreement, i. e., payment. This court however did not deny that an oral modification had been effected merely because of that fact.

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Matzinger v. Remco, Inc., 558 P.2d 650, 171 Mont. 383, 1976 Mont. LEXIS 554 (Mo. 1976).

558 P.2d 650 (Matzinger v. Remco, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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