Northwestern, Inc. v. Ward Land Clearing & Drainage, Inc.

500 So. 2d 615, 12 Fla. L. Weekly 52, 1986 Fla. App. LEXIS 10996
CourtDistrict Court of Appeal of Florida
DecidedDecember 23, 1986
DocketNo. BH-91
StatusPublished
Cited by3 cases

This text of 500 So. 2d 615 (Northwestern, Inc. v. Ward Land Clearing & Drainage, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northwestern, Inc. v. Ward Land Clearing & Drainage, Inc., 500 So. 2d 615, 12 Fla. L. Weekly 52, 1986 Fla. App. LEXIS 10996 (Fla. Ct. App. 1986).

Opinion

JOANOS, Judge.

Appellants Northwestern, Inc. (Northwestern) and United States Fidelity and Guaranty Company (USF & G) appeal a final judgment which awarded retainage, costs, and attorney’s fees to appellee Ward Land Clearing and Drainage, Inc. (Ward). [616]*616Appellants raise four questions for our review: (1) whether Ward was entitled to judgment for retainage under its subcontract with Northwestern; (2) whether Ward was entitled to an award of attorney’s fees; (3) whether Ward should be required to pay a proportionate share of the Gulf Asphalt judgment after Northwestern prevailed on its counterclaim; and (4) whether Northwestern and USF & G were entitled to attorney’s fees and costs as the prevailing party on the novation question and counterclaim. We affirm in part and reverse in part.

Northwestern, defendant in the trial court proceeding, was awarded a prime contract by the Bay County Board of County Commissioners to install sewer treatment plants, lift stations, and sewer lines in the City of Parker. On January 30, 1981, Northwestern subcontracted a portion of the Parker work to Ward,1 plaintiff in the trial court proceeding. The contract between Northwestern and Ward provided, inter alia, that (1) Northwestern would pay Ward an agreed upon sum, (2) subject to additions and deductions for changes agreed upon in writing, (3) payment would be based on the actual measured installed quantities, and (4) a 10% retainage would be withheld from each estimate of work performed. In addition, the subcontractor Ward was to submit applications for payment to the general contractor Northwestern on a scheduled basis so the general contractor could apply to the owner Bay County for payment.

Once the sewers were installed, the original contract called for an 8-inch shell base material and a lVk-inch type S-l asphalt, to bring the roadway back up to the original paving surface. However, the mayor of Parker wanted the entire street surface paved so the streets would have a uniform appearance. The engineering firm retained by Bay County approached Northwestern and asked the company to come up with a proposal that would accomplish this goal of uniformity.

Over a three or four month period, several proposals were advanced. Northwestern contacted Gulf Asphalt, the firm which had provided Northwestern with data for its original bid. Subsequently there was a meeting attended by the mayor, the county’s engineering consultants, and representatives of Northwestern and Ward. The change finally accepted by the county specified a ¾-inch leveling course and a ½ -inch wearing surface of compacted sand-asphalt hot mix. Gulf Asphalt suggested use of the sand-asphalt hot mix to Northwestern, because it could be put down in a thinner layer than the S-l asphalt.2

In December 1981 representatives from Northwestern and Ward met in the offices of Gulf Asphalt. Gulf Asphalt agreed to do the asphalt portion of the work for $25 a ton. This price included delivery to the job site and spreading of the asphalt mix. The record reflects that Northwestern considered Ward’s participation in the conference vital to the project. Since Ward was responsible for a significant portion of the project, Northwestern concluded Ward should have the opportunity to discuss the paving alternatives and prices.

Because Gulf Asphalt did not want two different subcontract agreements for the same job, the parties agreed that Gulf Asphalt would bill Northwestern for the contract total, and Ward would pay its pro rata share to Northwestern. It was further agreed, pursuant to Gulf Asphalt’s request, that Northwestern and Ward would have a representative in their respective areas to sign truck tickets for the asphalt as it was delivered.

In January and February 1982, Gulf Asphalt delivered the material to the job site. Northwestern and Ward each had a representative present at the site to sign the truck tickets. Mr. Adams and Mr. Chavis [617]*617signed for Northwestern; Mr. Adams (of Northwestern) signed for Ward on two days, then Mr. Pitts signed for Ward.

In January 1982, Gulf Asphalt’s work was satisfactory. In February 1982, however, both Mr. Pitts of Ward and Mr. Chav-is of Northwestern became concerned about the amount of asphalt put down by Gulf Asphalt. A field inspector for Bay County testified that Mr. Pitts checked Ward’s section more frequently than Mr. Chavis checked Northwestern’s section. The field inspector was on the job to assure minimum compliance with contract specifications with regard to thickness of the asphalt. According to the field inspector, if the respective contractors had not had representatives on the scene, he would have done something to halt the manner in which Gulf Asphalt applied the surfacing material.

In late February 1982 the last asphalt was put down. Ward considered the work complete, although it did conduct general clean up and air testing in March 1982. In September 1982 Bay County formally accepted the work as complete. The warranty period ran for one year after acceptance. The record reflects that Ward performed some warranty work after acceptance.

On March 2, 1982, Gulf Asphalt submitted a bill to Northwestern for $123,-143.00, for the Parker project. Mr. Chavis, president of Northwestern, requested a meeting with Gulf Asphalt to discuss the billing. The invoice submitted to Mr. Chav-is indicated 4,925.72 tons of asphalt had been used on the job. This tonnage did not tally with the truck delivery tickets, and the amount billed was more than double the tonnage Northwestern had estimated would be required for the job.

Ward, Northwestern, and Gulf Asphalt met in April 1982, to go over the truck tickets. The correct tonnage was determined to be 3,776.35 tons delivered to the site, with 187.89 tons charged back to Gulf Asphalt as overage. On April 16, 1982, Northwestern received a statement from Gulf Asphalt for 3,588.460 tons at a cost of $89,711.50. At that point, Mr. Chavis was satisfied that 3,588.460 tons had been delivered to the job site but he was convinced the job should have required approximately 2400 tons. He performed random samplings at the job site, and found the asphalt was considerably thicker than the Vi-inch layer agreed upon. Mr. Chavis and Mr. Ward, presidents of Northwestern and Ward respectively, determined the cost of the asphalt actually required for the job should have been $60,000, yet the final bill from Gulf Asphalt was for nearly $90,000. Therefore, Ward and Northwestern decided they would pay only the $60,000, which represented their estimate of the cost for the job.

On June 7, 1982, Mr. Chavis of Northwestern wrote to Gulf Asphalt, stating in part that after receiving a second invoice in the amount of $89,711.50, he made a trip to Panama City and measured the resurfacing and patch work performed by Gulf Asphalt. According to his on-the-site calculations as well as the original calculations, the entire project should have required 2,417.235 tons of asphalt for a total cost of $60,430.88. Northwestern then proposed to. pay Gulf Asphalt $60,430.88 as payment in full for the Parker area project. Gulf Asphalt rejected Northwestern’s proposal, and asserted that Northwestern owed Gulf Asphalt $89,711.50, plus attorney’s fees, interest, and court costs.

On December 23, 1983, Mr. Chavis of Northwestern executed a contractor’s affidavit, representing that with the exception of the pending Gulf Asphalt lawsuit, no subcontract remained unpaid.3 According to Mr.

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500 So. 2d 615, 12 Fla. L. Weekly 52, 1986 Fla. App. LEXIS 10996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwestern-inc-v-ward-land-clearing-drainage-inc-fladistctapp-1986.