Olson v. Westfork Properties, Inc.

557 P.2d 821, 171 Mont. 154, 1976 Mont. LEXIS 530
CourtMontana Supreme Court
DecidedNovember 30, 1976
Docket13326
StatusPublished
Cited by40 cases

This text of 557 P.2d 821 (Olson v. Westfork Properties, 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
Olson v. Westfork Properties, Inc., 557 P.2d 821, 171 Mont. 154, 1976 Mont. LEXIS 530 (Mo. 1976).

Opinion

MR. JUSTICE JOHN C. HARRISON

delivered the opinion of the court.

This action involves an attempted foreclosure of a mechanic’s lien against property of a corporation by a contractor. The district court, Gallatin County, entered findings of fact, conclusions of law and judgment for defendant corporation.

On October 6, 1973 plaintiff Fred Olson and defendant West-fork Properties, Inc., entered into a contract to install sewer and water lines on Westfork’s property, a subdivision near the Big Sky recreation area. Plaintiff Olson was to supply men and equipment while Westfork supplied all required materials and some equipment including a tractor, lowboy trailer and a backhoe operated .by a Westfork employee, for the project.

Plans and specifications were drawn for the project by the firm of Thomas, Dean & Hoskins, professional engineers. An employee of the firm, James A. Cummings, a registered professional engineer, was assigned to supervise the project and insure specifications were met.

Plaintiff was to receive $3 for each installed and approved lineal foot of line, with payments to be made on the 10th of each month following submission of a statement on the last day *156 of the month preceding. Ten percent of each payment was retained by defendant corporation as a “holdback”, to be paid to plaintiff no later than 30 days after satisfactory completion of the entire project.

The contract required all work be done according to specifications which required (1) backfill of subgrade leaving no rocks or stones within 6 inches of the finished subgrade elevations to interfere with later road construction; (2) the contractor was to clean up the area and leave it essentially in the same condition as when the project began, which included an obligation to remove all rocks brought to the surface in the course of his excavation; (3) all backfill was to be compacted to contract specifications; and (4) all lines were to be subjected to a hydrostatic pressure test after backfilling was completed. Olson was obligated to repair any lines that failed these tests.

Olson began work on the project about 10 days after the agreement was executed. Monthly billings were submitted and as of August 4, 1974, the total billings amounted to $92,786.66, of which Olson had been paid $81,860.99, with Westfork holding back $10,925.67 pending satisfactory completion of the project. The statement submitted by Olson on August 4, 1974, indicated he considered the project to be completed. Testimony at the district court trial indicates the contract had not been completed to the satisfaction of Westfork or engineer Cummings, because there was a 616 foot section of water line in the project which had failed the hydrostatic tests and also because the cleanup work required by the contract was not satisfactory.

No further installation or cleanup work was done on West-fork’s property after August 4, 1974. Olson did return to the property to complete testing of the lines and to attempt location and repair of the leak in the section which failed hydrostatic tests. Three days were spent in an unsuccessful search for the leak, until November 27, 1974, when Olson and his crew were last on this project.

*157 Olson filed a mechanic’s lien on February 25, 1975 on the property owned by Westfork and subsequently filed an action to foreclose his lien, claiming $11,096.66 plus interest and reasonable attorney fees. Westfork’s answer asserted the lien was null and void and contained a counterclaim seeking damages of' $18,733.85 sustained in correction of alleged deficiencies in work performed. The district court issued findings of fact and conclusions of law awarding $9,812 to Westfork, to be withheld from the $10,925.67 “holdback”. In addition, the court concluded Olson was not entitled to a valid lien because the project was not completed to the satisfaction of Westfork and in compliance with the plans and specifications. The district court also concluded the lien had not been filed within 90 days after the last labor and machinery was furnished by plaintiff in installation of the water and sewer lines.

This Court’s function in reviewing findings of fact in a civil action tried by the district court without a jury is not to substitute its judgment in place of the trier of facts but rather it is “confined to determining whether there is substantial credible evidence to support” the findings of fact and conclusions of law. Hornung v. Estate of Lagerquist, 155 Mont. 412, 420, 473 P.2d 541, 546. See also: Transamerica Ins. Co. v. Glacier Gen. Assurance Co., 163 Mont. 454, 461, 517 P.2d 888. Although conflicts may exist in the evidence presented, it is the duty and function of the trial judge to resolve such conflicts. His findings will not be disturbed on appeal where they are based on substantial though conflicting evidence. Fausett v. Blanchard, 154 Mont. 301, 463 P.2d 319; Clough v. Jackson, 156 Mont. 272, 479 P.2d 266; Intermountain Electric, Inc. v. Berndt, 164 Mont. 67, 518 P.2d 1168; City of Missoula v. Rose, 164 Mont. 90, 519 P.2d 146.

In determining whether the trial court’s findings are supported by substantial evidence, this Court must view the evidence in the light most favorable to the prevailing party. Hellickson v. Barrett Mobile Home Transport, Inc., 161 Mont. 455, *158 507 P.2d 523; McEwen v. Big Sky of Montana, Inc., 169 Mont. 141, 545 P.2d 665. Substantial evidence has been defined by this Court as such as will convince reasonable men and on which such men may not reasonably differ as to whether it establishes the plaintiff’s case, and, if all reasonable men must conclude that the evidence does not establish such case, then it is not substantial evidence. The evidence may be inherently weak and still be deemed “substantial”, and one witness may be sufficient to establish the preponderance of a case. See: Staggers v. U.S.F. & G. Co., 159 Mont. 254, 496 P.2d 1161; Greene v. Knapp’s Service, 161 Mont. 438, 440, 506 P.2d 1381.

The district court after hearing testimony granted defendant’s counterclaims in the amount of $9,812.

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Bluebook (online)
557 P.2d 821, 171 Mont. 154, 1976 Mont. LEXIS 530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olson-v-westfork-properties-inc-mont-1976.