Paine-Gallucci, Inc. v. Anderson

246 P.2d 1095, 41 Wash. 2d 46, 1952 Wash. LEXIS 413
CourtWashington Supreme Court
DecidedAugust 7, 1952
Docket32020
StatusPublished
Cited by11 cases

This text of 246 P.2d 1095 (Paine-Gallucci, Inc. v. Anderson) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paine-Gallucci, Inc. v. Anderson, 246 P.2d 1095, 41 Wash. 2d 46, 1952 Wash. LEXIS 413 (Wash. 1952).

Opinion

Grady, J.

This action was originally commenced by respondent against appellant, the General Casualty Company of America, and the city of Tacoma to recover a money judgment, including interest and attorney’s fees, to foreclose a lien upon moneys retained by Tacoma and a deficiency judgment against appellant and the casualty company, the latter being the surety upon a bond given by appellant. The respondent dismissed its action against the casualty company. The city of Tacoma paid the retained fund into the registry of the court. The court rendered a money judgment against appellant with interest and attorney’s fees, ordered that the lien upon the money paid into court be foreclosed and such fund applied on the judgment. The court decreed that the contract which furnished the basis for the money judgment be reformed.

The case history is quite complicated, but we shall set forth only so much of it as affects the three questions we have to decide on this appeal—(a) which party to the contract between appellant and respondent was obligated to defray the expense of replacing street surfacing referred to as the “oil mat,” (b) whether respondent was entitled to an award for attorney’s fees, and (c) the amount of interest on moneys owing that appellant should pay.

Appellant owned a tract of land which he desired to develop and sell in parcels for building sites. He petitioned the city to create a local improvement district and install a pipeline to carry water from the main line to his property. The engineer made an estimate of the cost of installation. Appellant feared the bids for the installation might be so high the work could not legally proceed. To avoid this possibility, he made a bid, the amount of which was a few dollars under the estimate. He was awarded the contract October 29, 1946.

*48 Respondent and appellant had a conversation with reference to a subcontract for the installation of the pipeline, and among other matters discussed was the question whether the surfacing of one of the streets (oil mat) would be disturbed. Appellant was of the opinion that the inner edge of the trench would be approximately two feet from the outer edge of the oil mat, hence there need be no disturbance. A few days later (January 17, 1948), respondent made a written proposal to appellant to furnish certain materials and lay the pipeline for a stated price and to enter into a contract if the proposal was acceptable. The proposal contained the following:

“We propose to furnish all labor and equipment except for the repair of the oil mat street repairs ...”

The proposal contained a promise that respondent would make repairs to any concrete and asphaltic concrete pavement made necessary by the crossing of certain streets by the pipeline. Below the signature to the proposal appears the following:

“If this proposal is acceptable we expect to enter into a contract with you.”

About a week later, the parties met at the office of an attorney. Appellant gave the proposal to the attorney. A contract was prepared and executed; it provided that respondent would replace and repair any broken up concrete and asphaltic pavement, but made no mention of repair or replacement of oil mat. The former would be made necessary by reason of crossing paved streets, and the latter if the trench was excavated along an oil mat surfaced street. The contract contained the following provision:

“The party of the second part [respondent] agrees to lay and construct the water main in accordance with the approved plan as set forth by Specification No. 247, Local Improvement District No. 5166, furnish all of the labor and all the machinery, and the following material and none others: Concrete and asphaltic concrete to replace and repair any broken up pavement; Three concrete anchors; Bankrun sand and gravel; Pig lead; ...”

*49 The specification referred to contained the following:

“The contractor [appellant] shall restore all paving, oil mat or other street surfacing, curbs and sidewalks under direction and to the satisfaction of the city engineer.”

Respondent laid the pipeline. In doing so, some of the oil mat was destroyed. The city declined to release the reserved fund unless the oil mat was replaced. Appellant took the position the contract had not been completed by respondent. In order to break the stalemate, respondent contracted with Tacoma and it replaced the oil mat. Respondent paid Tacoma six hundred dollars for the work it did, and this amount is included in the complaint in this case.

In its complaint, respondent alleged that it had been agreed and understood between it and appellant that the latter would either replace or pay the cost of replacing the oil mat, but “through mistake and inadvertence the replacing of the said oil mat by the defendant herein was omitted and left out of said contract, notwithstanding the fact that it was clearly agreed and understood that the replacing of the oil mat was to be done by defendant Anderson.” The complaint did not ask for reformation of the contract.

The respondent secured a judgment against appellant by default. The judgment provided that the contract be reformed to include therein a provision that the defendant Eivind Anderson pay for the replacing of the oil mat. Prior to this time, respondent had filed a claim against the bond given by appellant pursuant to RCW 39.08.040. After the entry of the judgment, respondent requested of and the court entered an order dismissing the action against the surety. The judgment was later vacated pursuant to an order of this court (Paine-Gallucci, Inc. v. Anderson, 35 Wn. (2d) 312, 212 P. (2d) 805). In both the first and second judgments, the court awarded respondent an attorney’s fee of four hundred dollars.

At the trial of -the action, there was received in evidence the written proposal, the contract, and specification No. 247. Testimony was submitted that either the attorney who prepared and dictated the terms of the contract failed to include *50 therein the negative provision relative to the oil mat, or that such omission was made when the contract was typewritten. The appellant does not claim error in the acceptance by the court of the theory of reformation advanced by respondent. The appellant met the proof by asserting that he had never received the proposal, that it was not presented to the attorney for use in preparing the contract, and that at all times it had been clearly understood and agreed that if any oil mat was disturbed respondent would replace it at its own expense. On appeal, appellant took the position that the evidence submitted in support of the theory of reformation was not of the clear and convincing character required.

The parties contemplated the execution of a written contract embodying such of their preliminary negotiations as had been agreed to, the terms of the written proposal and a provision requiring respondent to lay and construct a water main in accordance with specification No. 247. By his contract with the city of Tacoma, appellant had become obligated to replace any oil mat disturbed by the construction work. The proposal excepted repair of oil mat.

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Bluebook (online)
246 P.2d 1095, 41 Wash. 2d 46, 1952 Wash. LEXIS 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paine-gallucci-inc-v-anderson-wash-1952.