Nelle Plumbing Company v. Stefanic

453 S.W.2d 636, 48 A.L.R. 3d 145, 1970 Mo. App. LEXIS 645
CourtMissouri Court of Appeals
DecidedMarch 24, 1970
Docket33515
StatusPublished
Cited by9 cases

This text of 453 S.W.2d 636 (Nelle Plumbing Company v. Stefanic) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelle Plumbing Company v. Stefanic, 453 S.W.2d 636, 48 A.L.R. 3d 145, 1970 Mo. App. LEXIS 645 (Mo. Ct. App. 1970).

Opinion

DOWD, Judge.

Plaintiff, a corporation and plumbing contractor, instituted this action to recover for labor and material furnished in the construction of a motel and to establish a mechanic’s lien against the real estate. Plaintiff asked for a monetary judgment for $4,013.86 against defendant-owners, Eugene R. Stefanic, his wife Virginia Stefanic, Henry Krysl and his wife Georgia Krysl. Plaintiff also asked that the mechanic’s lien be given priority over a deed of trust held by Thomas D. Williams, as trustee and Gravois- Home Savings & Loan Association (hereinafter Gra-vois) as cestui que trust. Rev Development Company (hereinafter Rev), the original contractor was not made a defendant.

Plaintiff’s petition alleged that at the special instance and request of defendant-owners, the plaintiff furnished materials and labor in the construction of the motel and that the labor and materials were reasonably worth the price charged which is the amount the defendant-owners “agreed to pay” at the time the materials and labor were furnished.

Plaintiff’s lien statement filed June 26, 1967 did not name defendants — Williams the trustee or Gravois which is the cestui que trust on the deeds of trust on the ■property.

The basis of plaintiff’s petition is an agreement or contract with the defendant-owners to provide labor and materials in the construction of the motel.

At the close of plaintiff’s case, the defendants made an oral motion to dismiss on two grounds: (1) Plaintiff failed to state or prove a cause of action against any of the defendant-owners contending that plaintiff failed to prove any agreement or contract with defendant-owners. (2) Plaintiff failed to name in the lien statement the defendants Williams and Gravois who are the trustee and cestui que trust under the deeds of trust.

The trial court took defendants’ motion to dismiss under submission and plaintiff and defendants submitted briefs regarding the motion. Later, the court sustained the defendants’ motion to dismiss. Plaintiff appealed.

Considering the evidence in a light most favorable to plaintiff and giving the plaintiff the benefit of all reasonable inferences arising from such evidence, we find the pertinent facts as follows. Jack Nelle, plaintiff’s president, was contacted in November of 1965 by Charles Robinson and Bob Etter, officers of Rev, and Henry Krysl regarding plumbing work at the motel and met with them at Rev’s office and went over plans for the motel. They wanted an opinion on the costs of the plumbing. Nelle gave them a price on the plumbing and plaintiff was employed to do the work. The record does not show who employed plaintiff. Bob Etter was the main person with whom Nelle dealt. Plaintiff had done work for Rev before. Prior work for Rev included eight apartments and Rev’s office building. On the first two jobs, plaintiff had a written contract with Rev but on the other jobs it did not have a contract with Rev. On these prior jobs, plaintiff dealt with Robinson and Etter, officers in the Rev Company.

Nelle saw defendant Eugene Stefanic on the job a couple of times but never discussed business with him. Nelle saw defendant Henry Krysl on the job two or three times. In November of 1966 which was about eleven months after the plaintiff started working on the job but before it was completed, in the presence of Etter and Dwight Schuble, who was an officer in the Jefferson County Abstract Company, Henry Krysl told Nelle that “we would guarantee your money.” This statement by Krysl referred to the sewer *639 work to be done by plaintiff in connecting into the sewer system of Pevely, Missouri. At the time of this conversation, Nelle did not know who owned the property. The defendant-owners entered into a contract with the City of Pevely regarding the annexation of their property.

The total cost of the job was $14,233.-62 and plaintiff received payments of $10,-200.00, leaving a balance of $4,033.62, the major portion of which is for the sewer work. The property was owned by the four individual defendants. These four owners obtained a construction loan of $109,600.00 from Gravois and executed a note and deed of trust on the property to Gravois. This deed of trust was recorded November 3, 1965. The disbursing of these funds under this loan was to be handled by the Jefferson County Abstract Company which was designated the escrowee under an agreement executed November 3, 1965, and listed Rev as the contractor. In December of 1966, the four defendant-owners obtained a second construction loan from Gravois for $135,500.00. This amount included $109,600.00 necessary to pay off the first loan. A deed of trust was again executed by the four defendant-owners in favor of Gravois and recorded December 19, 1966. Gravois was the cestui que trust on both deeds of trust. Jefferson County Abstract Company was again named the escrow agent. This second escrow agreement was signed by the four defendant-owners and listed Henry Krysl as the contractor. Paragraph 20 of these escrow agreements states: “That Contractor is agent for Owner and should Contractor fail to complete construction, Owner shall be responsible to Mortgagee and Escrowee to complete all work in accordance with plans and specifications and pay all costs therefor. Should construction not be satisfactorily completed, in addition to any other remedy available to it, Mortgagee may declare the note or notes secured by the mortgage due and payable without any other notice to or demand on Owner and may then proceed with foreclosure or may take such other legal action as it determines.”

The labor and materials as reflected in the lien statement went into the construction of the motel and were reasonably worth the prices charged. There were twenty-three vouchers for payment for materialmen and workmen and labor signed by Henry Krysl, one signed by Charles Robinson and two signed by Henry Krysl and Eugene Stefanic. These vouchers were presented to the escrow agent who paid them by check.

Plaintiff received three payments on its account. The first payment for $3,500 was based on a voucher signed by Robinson. The second payment for $2,200 was based on a voucher signed by Robinson and Henry Krysl and the third payment for $4,500 was based on a voucher signed by Henry Krysl.

This work was done on an open account and the job was billed as one continuous account and all the billings were directed to Rev. As the time for filing a lien statement approached, Nelle tried to contact Rev.

Plaintiff contends that it was error for the court to sustain defendants’ motion to dismiss because it proved an agreement with the four defendant-owners and because Rev was an agent for the four defendant-owners and it was not required to name Gravois in the lien statement. Plaintiff next contends that it was entitled to judgments also against Virginia Stefanic and Georgia Krysl, wives of the two individual defendant-owners, because the wives signed the two notes and deeds of trust, two escrow agreements and two loan settlement statements. Plaintiff also contends its lien should have priority over the deed of trust because the deed of trust was recorded after the work began.

This case was tried to the court without a jury and it is our duty to review the case upon both the law and the evidence deferring to the trial court’s find *640 ings upon controverted factual matters.

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Bluebook (online)
453 S.W.2d 636, 48 A.L.R. 3d 145, 1970 Mo. App. LEXIS 645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelle-plumbing-company-v-stefanic-moctapp-1970.