Morning Star Enterprises, Inc. v. R. H. Grover, Inc.

805 P.2d 553, 247 Mont. 105, 48 State Rptr. 112, 1991 Mont. LEXIS 22
CourtMontana Supreme Court
DecidedJanuary 31, 1991
Docket90-194
StatusPublished
Cited by49 cases

This text of 805 P.2d 553 (Morning Star Enterprises, Inc. v. R. H. Grover, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morning Star Enterprises, Inc. v. R. H. Grover, Inc., 805 P.2d 553, 247 Mont. 105, 48 State Rptr. 112, 1991 Mont. LEXIS 22 (Mo. 1991).

Opinion

JUSTICE HARRISON

delivered the Opinion of the Court.

*108 This is an appeal from a final judgment enforcing a contract in favor of respondent, entered by the District Court of the Fourth Judicial District for Missoula County. We affirm in part and reverse in part.

The issues presented for review are as follows:

(1) Whether the District Court erred in its interpretation of the contract between Morning Star Enterprises, Inc. and R. H. Grover, Inc.

(2) Whether the District Court abused its discretion in allowing Thomas Pew to testify as an expert witness for R. H. Grover, Inc.

(3) Whether the District Court erred in granting R. H. Grover, Inc. prejudgment interest on the sums awarded.

(4) Whether the District Court abused its discretion in awarding costs which are not allowed by statute and by allowing attorney’s fees far in excess of the amount recovered.

The appellant, Morning Star Enterprises, Inc., initiated this suit in 1984 seeking sums it claimed were due from R. H. Grover, Inc. (Grover) arising from the construction of a sludge stabilization and dewatering facility in Missoula. Morning Star was the subcontractor on that project and Grover was the general contractor. Grover has counterclaimed against Morning Star alleging that Morning Star owes Grover additional sums on the Missoula project and also additional sums from a waste water treatment project in Glacier Park wherein Morning Star was the general contractor and Grover was the subcontractor.

On the 8th day of June, 1982 Morning Star entered into an agreement as a subcontractor with Grover whereby Morning Star was to perform certain work on the expansion of the waste water treatment plant for the city of Missoula. Morning Star began construction under the subcontract by the end of June, 1982.

The three page subcontract was prepared by Grover. A provision of the subcontract at issue here required Morning Star to perform the following work: “Division 504 — Doors, Windows, Frames — Install contractor furnished material complete. Subcontractor to furnish supports and accessories as necessary for installation.” At trial, Morning Star contended that this provision did not obligate them to seal an alleged two-inch gap between the windows and the walls which was caused, according to Morning Star, by Grover’s own oversight. Grover disputed the existence of a two-inch gap. In *109 addition, Grover as contractor would “furnish an adequate crane with operator for subcontractor’s use as normally required on a project of this type, excluding concrete placement.” (Emphasis added.) The question regarding this portion of the subcontract is how to define “excluding concrete placement.” At trial, Morning Star contended that the subcontract obligated Grover to allow Morning Star to use Grover’s crane to put in place precast concrete panels.

The court, sitting without a jury, found in favor of Grover and awarded a judgment in the sum of $7,067.54 plus prejudgment interest at the rate of ten percent per annum from August 31, 1984 until the date of the judgment, for the Missoula project. The court awarded the further sum of $880.64 plus interest from the date of judgment, for the balance due on the retainage from the Glacier National Park job. In addition, the court awarded Grover attorney’s fees in the sum of $28,865.63 and costs and disbursements in the amount of $1,724. It is from that judgment that Morning Star now appeals, claiming that the District Court’s decision was unreasonable, contrary to the parties’ intentions and improper under the rules of contract construction.

I.

Whether the District Court abused its discretion in allowing Thomas Pew to testify as Grover’s expert witness.

In March of 1986, Grover was required under interrogatories and Rules 33 and 34 of the Montana Rules of Civil Procedure to provide Morning Star with a list of any and all expert witnesses with whom they expected to call at the trial. In addition, Grover was required to fist in detail the subject matter of any testimony that an expert witness would make. Twelve days prior to trial, which began on May 24, Grover notified Morning Star that Grover would be bringing Thomas Pew before the District Court to testify as an expert in this matter. Grover also supplemented his answers pursuant to Rule 26(e), M.R.Civ.P., by a formal supplement, dated May 12, 1989, in terms of Pew’s background, what he would testify to and disclosed the underlying facts to which he would testify. Grover, furthermore, made Pew available for deposition by Morning Star. Then, on May 26, 1989, at a bench discussion, counsel for Grover informed Morning Star that Pew would be called as a witness on June 15,1989, the next scheduled trial date. During the June 15 hearing, after objections and an extensive discussion, the District Court allowed a recess in order *110 to give Morning Star an opportunity to discuss Pew’s testimony with Pew. Then, over another objection, Pew was allowed to testify. Morning Star now argues that the District Court abused its discretion by admitting Pew’s testimony because such admission amounted to unfair surprise.

Admissibility of evidence is within the sound discretion of the District Court and we will not reverse the District Court’s admission of evidence unless the ruling amounts to an abuse of that discretion. Massman v. City of Helena (1989), 237 Mont. 234, 773 P.2d 1206. It is uncontested that counsel for Morning Star knew of Pew’s existence and potential testimony as early as May 12,1989. Furthermore, Pew’s May 22,1989 deposition was videotaped. This videotape as well as the transcribed copy of the deposition was available to Morning Star. In addition, Pew testified on June 15, 1989. Lastly, Morning Star had its own expert, Mr. Springer, available to testify in order to rebut any claims made by Pew. In view of the disclosure of the testimony of Pew, the availability of the depositions and the actual opportunity to examine Pew prior to his testimony, we find no error. We hold that there was no abuse of discretion by the District Court in allowing the testimony of Mr. Pew.

II.

Whether the District Court erred in its interpretation of the contract.

As its first assignment of error, Morning Star argues that the District Court erred by finding that the subcontract in question did not provide for Morning Star’s use of Grover’s crane to pick up and put in place precast concrete panels which would become the walls of the structure. Under the terms of the subcontract, Grover was to provide to Morning Star an adequate crane and qualified operator, for Morning Star’s use, “excluding concrete placement.” Dining construction of the sewage plant, Grover refused to allow Morning Star to use the crane for placement of precast concrete panels. At trial, Mr. Grover testified as follows:

“I discussed and, in fact, negotiated the entire agreement with Morning Star with Mr. Ray Murphy. We discussed the scope of their work, what who would be on the job, what Mr. Murphy had included in his price. These negotiations took place during several telephone conversations... . I had worked with Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
805 P.2d 553, 247 Mont. 105, 48 State Rptr. 112, 1991 Mont. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morning-star-enterprises-inc-v-r-h-grover-inc-mont-1991.