Nichols Corp. v. Bill Stuckman Construction, Inc.

728 P.2d 447, 105 N.M. 37
CourtNew Mexico Supreme Court
DecidedOctober 29, 1986
Docket15656
StatusPublished
Cited by13 cases

This text of 728 P.2d 447 (Nichols Corp. v. Bill Stuckman Construction, Inc.) 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
Nichols Corp. v. Bill Stuckman Construction, Inc., 728 P.2d 447, 105 N.M. 37 (N.M. 1986).

Opinions

OPINION

FEDERICI, Justice.

Nichols Corporation (appellee) filed suit in the District Court of Valencia County naming as defendants A.J. Mills (Mills), d/b/a A.J. Mills Construction Co. (Mills Construction), d/b/a Molino and Company (Molino), Bill Stuckman Construction Company, Inc. (Stuckman) and American Insurance Company (American) (appellants). The jury found in favor of Nichols Corporation and judgment was entered accordingly. Stuckman and American appeal. We affirm.

Stuckman was the general contractor for the Wastewater Treatment Plant Improvement Project in Lovington, New Mexico (Project). Appellee alleged in its complaint that prior to April 10, 1981, Mills Construction assumed a subcontract held by Chava & Company calling for earth moving and excavation on the Project. On April 10, 1981, Mills Construction and appellee signed a written agreement whereby appellee agreed to furnish financial assistance to Mills Construction for expenses to be incurred in performing the subcontract work. In return Mills agreed to reimburse appellee each month upon receipt of monthly estimate payments from Stuckman. Appellee was to receive “thirty percent of any and all profits, determined after deducting operating expenses * * *. Upon the completion of said Project, Nichols Corporation will receive 30% of any profits from sums held in retainage.” The record on appeal indicates the “[pjrofits were to include proceeds from the sale of crushed material and fill dirt removed from the [project] site.” Appellee and Mills had set up an independent operation on land adjacent to the Project. It involved producing crushed material and fill dirt from waste excavated from the Project to be sold to other construction projects. It was not part of the Project.

Appellee further alleged in its complaint that for a time Mills reimbursed appellee in accordance with their April 1981 contract. The payments were made by cheeks drawn on the Molino bank account. The Molino account was a joint account of Mills and appellee and either Mills or Nichols could draw against the full balance. Nichols testified the account was opened with his money as a form of escrow to ensure control over the Project’s proceeds. The complaint alleged that Mills ceased payments to appellee in June 1981 and failed to account for profits. In August 1981 appellee terminated the April agreement and brought this action.

Appellee sued Stuckman and American under two theories. First, appellee claimed to be a third party beneficiary of the Stuck-man-Mills subcontract. Second, pursuant to NMSA 1978, Sections 13-4-18 and -19 (Repl.Pamp.1985) (Little Miller Act), appellee sought relief against the performance and payment bond executed by American seeking payment for equipment, materials, and financial services allegedly used on the project.

Default judgment for nonappearance was entered on April 11, 1983 against Mills in favor of appellee. At the outset of the Nichols-Stuckman trial in May 1984 it was brought to the court’s attention that a default judgment as to Stuckman's cross-claim against Mills had never been entered. The trial judge, pursuant to motion, again granted default judgment against Mills for nonappearance.

Stuckman counterclaimed against appellee alleging that Mills and appellee were partners or joint venturers for performing the subcontract work on the Project and for the crushing operation. Further that Mills defaulted on the subcontract because appellee had stopped providing money to Mills. As a result and to complete the Project, Mills and Stuckman agreed in writing that Stuckman would pay Mills’ expenses and charge the payments against the remaining subcontract proceeds and retainage as default damages. Stuckman sought to hold appellee, as a partner or joint venturer of Mills, jointly and severally liable for the expenses Stuckman incurred on the Project as a result of Mills’ default.

The jury found by special interrogatory that appellee was a subcontractor of Mills and thus a sub-subcontractor of Stuckman and awarded appellee $125,073.04 against Stuckman and American. Stuckman was awarded nothing on its counterclaim against appellee. This appeal followed.

Appellants contend on appeal that the following are prejudicial and reversible errors committed by the trial court:

1. The exclusion of the deposition testimony of Mills;

2. Refusing to instruct and in improperly instructing the jury in the law of partnership and joint ventures;

3. Permitting parol evidence to contradict the terms of a written agreement in violation of the parol evidence rule;

4. Failure to instruct the jury on Stuck-man’s and American’s defense that the alleged Mills-Nichols sub-subcontract was unenforceable because it had not been approved as required by the Stuckman-Mills subcontract;

5. The determination that Nichols’ testimony was competent evidence as to the reasonable value of labor and materials actually used on the Project;

6. Incorrectly instructing the jury on damages under the Little Miller Act.

Issue 1.

Appellants argue the exclusion of Mills’ deposition was prejudicial and reversible error.

We find appellants have failed to preserve the issue for appeal. An offer of proof is essential to preserve error where evidence has been excluded. Williams v. Yellow Checker Cab Co., 77 N.M. 747, 427 P.2d 261 (1967). For the exclusion of the evidence to be error, the substance, of the evidence must be made known to the trial court by offer or must be apparent from the context in which questions were asked. NMSA 1978, Evid.R. 103(a)(2) (Repl.Pamp. 1983).

The record discloses that appellants offered only excerpts of Mill’s deposition which were pertinent to his residence as part of their effort to demonstrate Mills’ unavailability. The record does not show that appellants otherwise attempted to make the substance of the deposition known to the trial judge. Thus, appellants have not met their burden in order to preserve the issue for appellate review.

Issue 2.

Appellants argue the trial court’s refusal to instruct and its improper instruction to the jury on the law of partnership and joint venture was prejudicial and reversible error. Appellants also objected to Special Interrogatory 1 as prejudicial in that it “effectively instructed the jury to disregard [appellants’] principal defense that Nichols and Mills were partners.”

As to appellants’ challenge to the special interrogatory, this Court notes that Jury Instruction 4 stated, in pertinent part, “if Nichols Corporation was a partner or joint venturer of A.J. Mills, then any payment made by Bill Stuckman Construction, Inc. to A.J. Mills waá a payment to the partnership or joint venture.” As appellants acknowledge in their reply brief, all instructions must be read and considered together and when so considered they must fairly present the issues and the law applicable thereto. Williams v. Vandenhoven, 82 N.M. 352, 482 P.2d 55 (1971). We conclude that any error which may have existed in the special interrogatory was corrected when the court gave Jury Instruction 4.

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Nichols Corp. v. Bill Stuckman Construction, Inc.
728 P.2d 447 (New Mexico Supreme Court, 1986)

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Bluebook (online)
728 P.2d 447, 105 N.M. 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nichols-corp-v-bill-stuckman-construction-inc-nm-1986.