Olson-Mahoney Lumber Co. v. Dunne Investment Co.

159 P. 178, 30 Cal. App. 332, 1916 Cal. App. LEXIS 460
CourtCalifornia Court of Appeal
DecidedMay 1, 1916
DocketCiv. No. 1478.
StatusPublished
Cited by7 cases

This text of 159 P. 178 (Olson-Mahoney Lumber Co. v. Dunne Investment Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olson-Mahoney Lumber Co. v. Dunne Investment Co., 159 P. 178, 30 Cal. App. 332, 1916 Cal. App. LEXIS 460 (Cal. Ct. App. 1916).

Opinion

*334 CHIPMAN, P. J.

Fourteen separate complaints were filed to enforce mechanics and materialmen’s liens, and by order of the court were consolidated and tried in one action. The plaintiffs in eleven of these several complaints are respondents and the appeal is here under the above title. Judgment was entered in favor of plaintiffs and from this judgment defendants appeal.

Defendants Condon and McGlynn were the contractors for the work; certain named persons defendants were owners of the property on which the building in question was erected, and defendant Dunne Investment Company was the owner of a lease executed by said owners, and erected said building in compliance with the terms of said lease. The building is situated on the northwest corner of Stockton and Ellis Streets, San Francisco.

The complaints were filed in the latter part of the year 1909 and were brought to issue by answers in 1910 and, on January 4, 1912, came on for trial, and findings of fact and conclusions of law were made on June 27, 1912, and judgment was entered on that day. Notice of appeal was served and filed July 27, 1912. Transcript on appeal was filed in the supreme court May 15, 1914. Appellants’ brief was filed September 15, 1914, and respondents’ brief was filed May 11, 1915. The cause was transferred to this court and papers filed here December 17, 1915, and appellants’ reply brief filed here January 18, 1916. It thus appears that more than two years expired after the actions were commenced before they were brought to trial. Nearly two years elapsed thereafter before transcript was filed in the supreme court. A year more passed before respondents’ brief was filed, and appellants’ reply brief was not filed until January 18, 1916, at which time the cause was submitted. We take the liberty of calling attention to the record as typical of many cases coming by transfer to this court as showing that the delay in reaching judgments on appeals in many cases is not, as is popularly believed, the fault of the appellate courts, but of the attorneys in the cases, brought about by stipulations which the courts feel bound to respect.

The attack is first made upon the finding upon which the judgment is based for the reason that it ignores the element of proportion to the whole contract price; that the evidence is insufficient “to sustain the finding even as to the amount *335 and that there is no finding of the ultimate facts, but finding No. 10 is only a conclusion of law.” Appellants then assail the proceedings in each of the eleven cases on various grounds, some of which are common to all of them while other grounds are urged to particular cases.

The contract price for the building was $52,750, and the contract, with its plans and specifications, was duly recorded before the work was commenced. Work commenced under this contract October 26, 1908, and continued until July 15, 1909. The contractors being unable to complete the building, the Dunne Investment Company gave three days’ notice, as provided in the contract, to furnish the necessary labor and materials to finish the building, which the contractors being unable to do, the Dunne Investment Company employed one Charles Wright to complete the job. The contractors had received, when they abandoned the work, $31,-397.50. The liens filed amounted to about twelve thousand dollars.

The contract provided that payments for the work should be made on the first of the month “as the work progresses, in installments, based upon the. monthly estimates of all work done and material furnished and paid for in the building, up to and including the last day of the preceding month, in sums equal to seventy-five per cent of the value of said work done and material furnished, to be estimated by the architect, provided that no more than seventy-five per cent of the whole contract price shall be paid up to the time of the completion. ’ ’ There was the usual provision deferring payment of twenty-five per cent. “The monthly estimates of the architect, however, subject to correction by him in any subsequent monthly or in his final estimates. Serving merely as a basis for payments on account they are presumed to be only approximate. ’ ’

Finding 10 is as follows: “That the value of the work and materials already done and furnished by said Condon and McGlynn on July 15, 1909, under said contract, including materials then actually delivered or on the ground, estimated by the standard of the-whole contract price, under said contract, was and is $41,863.33.”

The court found that there was the sum of $10,465.83 subject to the various liens, being the difference between the amount of the work and materials done and furnished, namely, $41,863.33, and the amount paid to the contractors, *336 namely, $31,397.50. That is, the payment in excess of the certificates given by the architect of seventy-five per cent of the work as it progressed, as provided in the contract, was the sum of $10,465.83 and was subject to liens in accordance with the rule enforced in the case of Olson-Mahoney Lumber Co. v. Maxwell, 18 Cal. App. 668, [124 Pac. 100].

It is well settled that, prior to the revisory statute of 1911 (Stats. 1911, p. 1313), under section 1200 of the Code of Civil Procedure, the actual value of the work and materials is not the test, but the value “estimated as near as may be by the standard of the whole contract price.” (Hoffman-Marks Co. v. Spires, 154 Cal. 111, [97 Pac. 152] ; Duffy Lumber Co. v. Stanton, 9 Cal. App. 38, [98 Pac. 38] ; Olson-Mahoney etc. Co. v. Maxwell, 18 Cal. App. 668, [124 Pac. 100].)

Appellants contend that the value of the work and materials as found by the court represented the actual value and not the value estimated by the standard of the whole contract price, and that the court reached its estimate by a mathematical calculation, to wit, by dividing $31,397.50, the amount paid the contractors, by .75, thus giving exactly the sum found, namely, $41,863.33. “Other than this mathematical calculation,” it is claimed, “there is not a word of evidence to sustain the finding.”

Witness Applegarth was the architect of the building and made the estimates of the work as it progressed and issued certificates therefor. He testified “that $31,397.50 was three-fourths of the. value, or possibly a little less than three-fourths of the value, of the portion of the work done by the Condon-McGlynn Company on the Dunne Building, estimated by the contract price for the whole. We were conservative always so as not to overstep the limit. So I am sure that .it was not more than three-fourths of what they had done estimated by the price of the whole.” Again, he testified: “These certificates were our estimates of the value of the work done in the period covered by the certificate estimated by the contract price.” Again: “We issued our certificates on the basis, of three-fourths of the value of the work done estimated by the whole contract price.” He testified that he helped superintend the construction of the building, and was at that time more familiar with the cost of the work required to be done on the building than at the *337 time he was testifying (two years later).

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Bluebook (online)
159 P. 178, 30 Cal. App. 332, 1916 Cal. App. LEXIS 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olson-mahoney-lumber-co-v-dunne-investment-co-calctapp-1916.