Montgomery v. Karavas

114 P.2d 776, 45 N.M. 287
CourtNew Mexico Supreme Court
DecidedMay 16, 1941
DocketNo. 4562.
StatusPublished
Cited by19 cases

This text of 114 P.2d 776 (Montgomery v. Karavas) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery v. Karavas, 114 P.2d 776, 45 N.M. 287 (N.M. 1941).

Opinions

BRICE, Chief Justice.

This action was brought by appellant to recover a balance of $8,735.70 and to foreclose a lien securing it, alleged to be due him by appellees upon a contract for the construction of a hotel in the town of Taos, New Mexico.

The appellees denied liability in any amount, and by cross-action claimed an indebtedness due them by appellant upon the same contract, in the sum of $13,344.12.

The trial court entered judgment for appellant in the sum of $1,250.15, as the balance due him after deducting certain credits found to be due appellees on their cross-action. From this judgment both parties appealed.

The substance of the trial court’s findings of fact is as follows:

On January 17, 1938, the parties hereto entered into a written contract, by the terms of which the appellant agreed to construct a hotel building in Taos, New Mexico (subject to additions or deductions), for the agreed price of $28,000.

The following are some of the provisions of the contract:

“The owners agree to make payments on account of the contract, as follows: 85% of the value of the materials wrought into the construction of the building, plus materials delivered on the job for use in said building, and in addition thereto 85% of the value of the labor performed thereon, in monthly installments, on or before the 10th day of each succeeding month, upon certificate of the architect, and, the remaining 15% of material and labor, including the balance due under the contract, within thirty days after completion of the building, and certification of completion by the architect. * * *
“All work performed and materials furnished under this contract shall be subject to the personal supervision and direction of the aforenamed architect (G. D. Gaastra) and shall be accepted by the owners only upon the complete approval of said architect. * * *
“ * * * the architect shall, not later than the date when each payment falls due, issue to the contractor a certificate for such amount as he decides to be properly due. * * *
“The architect may withhold or, on account of subsequently discovered evidence, nullify the whole or a part of any certificate to such extent as may be necessary to protect the owner from loss on account of:
“(a) Defective work not remedied.
“(b) Claims filed or reasonable evidence indicating probable filing of claims.
“(c) Failure of the contractor to make payments properly to subcontractors or for material or labor.
“(d) A reasonable doubt that the contract can be completed for the balance then unpaid.
“(e) Damage to another contractor.
“When the above grounds are removed payment shall be made for amounts withheld because of them.
“Neither the final payment nor any part of the retained percentage shall become due until the contractor, if required, shall deliver to the owner a complete release of all liens arising out of this contract, or receipts in full in lieu thereof and, if required in either case, an affidavit that so far as he has knowledge or information the releases and receipts include all the labor and material for which a lien could be filed. * * * If any lien remain unsatisfied after all payments are made, the contractor shall refund to the owner all moneys that the latter may be compelled to pay in discharging such a lien, including all costs and a reasonable attorney’s fee. * * *
“The architect shall have general supervision and direction of the work. He is the agent of the owner only to the extent provided in the contract documents and when in special instances he is authorized by the owner so to act, and in such instances he shall, upon request, show the contractor written authority. He has authority to stop the work whenever such stoppage may be necessary, to insure the proper execution of the contract.
“As the architect is, in the first instance, the interpreter of the conditions of the contract and the judge of its performance, he shall side neither with the owner nor with the contractor, but shall use his powers under the contract to enforce its faithful performance by both. * * *
“The architect shall, within a reasonable time, make decisions on all claims of the owner or contractor and on all other matters relating to the execution and progress of the work, or the interpretation of the contract documents.
“The architect’s decisions, in matters relating to artistic effect, shall be final', if within the terms of the contract documents.
“Except as above or as otherwise expressly provided in the contract documents, all the architect’s decisions are subject to arbitration.
“Unless stipulated, the contractor shall provide and pay for all materials, labor, water, tools, equipment, light, power, transportation and other facilities necessary for the execution and completion of the work.
“If the architect and owner deem it inexpedient to correct work injured, or done not in accordance with the contract, an equitable deduction from the contract price shall be made therefor. * * *
“If the contractor should neglect to prosecute the work properly or fail to perform any provision of this contract, the owner, after three days’ written notice to the contractor may, without prejudice to any other remedy he may have, make good such deficiencies and may deduct the cost thereof from the payment then or thereafter due the contractor, provided, however, that the architect shall approve such action and the amount charged to the contractor.”

The appellant completed the building, together with extras and additions for which appellees had agreed to pay him $3,296.57, making the agreed consideration $31,296.57 for constructing the hotel with changes and additions. The trial court allowed appellees the following credits:

Cash payments on contract.....$22,042.07

Payments made for material by appellees .................. 1,230.93

Hardware furnished by appellees, used in the construction of the building.............. 350.00

Material bill paid by appellees to Rio Grande Steel Co..'....... 1,073.12

Material bill paid by appellee to T. Chas. Gaastra............ 3,179.05

Paid by appellees to Southwestern Accoustical Eng. Co...... 257.45

Allowance for defective tile construction ................... 441.80

Allowance for other defective construction................ 1,580.00

Total credits .............

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114 P.2d 776, 45 N.M. 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-v-karavas-nm-1941.