Parker Land & Improvement Co. v. Ayres

87 N.E. 1062, 43 Ind. App. 513, 1909 Ind. App. LEXIS 79
CourtIndiana Court of Appeals
DecidedApril 9, 1909
DocketNo. 6,820
StatusPublished
Cited by5 cases

This text of 87 N.E. 1062 (Parker Land & Improvement Co. v. Ayres) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parker Land & Improvement Co. v. Ayres, 87 N.E. 1062, 43 Ind. App. 513, 1909 Ind. App. LEXIS 79 (Ind. Ct. App. 1909).

Opinion

Watson, C. J.

The Parker Land & Improvement Company brought this action against Carey C. Ayres, Oscar J. Current, Daniel W. McLeod and Edward J. Shoobridge, upon a bond executed by said Ayres and Current to appellant to secure the performance of a contract by McLeod and Shoobridge to construct for appellant a certain building upon its real estate. Judgment below for defendants.

This case presents three questions for our consideration, viz.: (1) Appellee’s contention as to the insufficiency of the complaint; (2) overruling appellant’s demurrer to paragraphs eight and nine of the answer; (3) overruling appellant’s motion for a new trial.

The amended complaint sets out the building contract executed by appellees McLeod and Shoobridge, and the bond executed by all the appellees to secure its performance. By the contract, plaintiff agreed to pay $4,860 for the erection of the building, as follows: For work and materials used, eighty per cent to be paid every two Aveeks until the building AAras completed, the same to include the weekly payment for all hired labor each Aveek, and tAventy per cent remaining to be paid Avhen the building AAras completed to the entire satisfaction of the party of the first part, free from all liens, judgments or claims either for material used or labor performed. The building Avas to be built and constructed in every particular and minute detail in accordance AAdth the plans and specifications of the architects. The complaint then alleges that said defendants McLeod and Shoobridge, under and pursuant to said contract, entered upon the work of constructing the building, but that long before the same [515]*515was completed tliey wholly abandoned said contract, leaving the building partially constructed and in an unfinished condition ; that before McLeod and Shoobridge abandoned the construction of said building defendant Ayres, a surety, notified plaintiff in writing not to pay any more money to said contractors on said contract, but to pay the same upon bills for materials that went into and work that was done and performed upon the building; that before receiving such notice, plaintiff had paid $2,553 to the contractors under and pursuant to said contract, and after receiving the notice paid an unstated amount for labor and materials. Plaintiff avers that “it has been at all times, since the making of said contract, * * * ready, willing and anxious to have defendants McLeod and Shoobridge complete said building according to said contract, and has at all times during said time been ready and willing to pay the balance of said contract price when said building was or should be completed according to said contract, * * and its failure and refusal to pay the balance of said contract price is only because said building has not been completed according to the contract.” It is then alleged that defendants Ayres and Current, for the purpose of saving themselves harmless as. sureties on said bond, undertook and agreed that they would finish the construction of said building under and pursuant to the conditions of said contract, and thereupon entered upon the work; that plaintiff did pay, at their request, $1,600 for labor and materials used by them. A number of alleged breaches of the bond are then charged, to wit, defective and unfinished construction of the building, inferior quality of the materials used, failure to complete building within the time agreed upon, and failure to pay for labor and materials so as to keep the property free from mechanic’s liens. The foreclosure of a number of such liens is their averred, resulting in judgments against the plaintiff, which, to prevent the sale of its property, plaintiff paid in the sum of $1,930, together with attorneys’ fees of [516]*516$500. The building as completed by said Ayres and Current is alleged to be worth not more than $2,000, and $700 is asked as a reasonable attorneys' fee for suing upon the bond. Loss to plaintiff is alleged to be $3,000, wherefore judgment is demanded for $4,000.

1. Appellees insist that nowhere in the complaint does appellant allege performance upon its part of all the conditions of the contract to be performed by it; and the rule undoubtedly is that a pleading, either as a cause of action or as a matter of defense, based upon a contract, must aver performance of the stipulations to be performed by the party relying upon the contract, or a sufficient excuse for nonperformance. Armstrong v. Rockwood (1876), 53 Ind. 506; Melton v. Coffelt (1877), 59 Ind. 310; Floyd v. Maddux (1879), 68 Ind. 124, 126.

2. Appellant answers this by referring to the rule in Riley v. Walker (1893), 6 Ind. App. 622, 629, that “it is unnecessary to allege performance, or readiness to perform on the part of the plaintiff, where it is shown that the defendant has repudiated the contract, or affirmatively refused to perform, or denies liability under it.”

3. The complaint alleges that defendants McLeod and Shoo-bridge abandoned the contract, and this is equivalent to a positive allegation that the contract was repudiated. Technically, abandonment is the relinquishment of a right (Dikes v. Miller [1859], 24 Tex. 417; Middle Creek Ditch Co. v. Henry [1895], 15 Mont. 558, 39 Pac. 1054), and repudiation, the renunciation of a duty (Iowa State Sav. Bank v. Black [1894], 91 Iowa 490, 59 N. W. 283). But rights and duties are correlative; to.renounce one is to recant the other. Besides, the complaint shows very clearly that performance upon the part of the plaintiff was made impossible by the conduct of defendants McLeod and Shoobridge in abandoning the contract, and by the notice given to it by defendant Ayres not to make any further payments to the contractors.

[517]*5174. Appellant assigns error in the court’s overruling its separate demurrers to paragraphs eight and nine of the answer of defendants Ayres and Current, and contends that neither of these paragraphs answers the whole complaint, that they charge that alterations were made in the contract for which the contract itself provided, that there is no allegation in either paragraph showing that such alterations were not made in the manner provided by the contract, that they were material, and that, because of an insufficient allegation of consideration, it could not be said that said changes and alterations were made under and in pursuance of another contract such as would discharge the sureties from their obligation on the bond.

The answers to the interrogatories show that the verdict on which judgment was rendered was in favor of the defendants, not by reason of any affirmative answer of the defendants to the complaint, but because the plaintiff failed to establish, by a preponderance of proof, the material averments of its complaint under the general denial.

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Bluebook (online)
87 N.E. 1062, 43 Ind. App. 513, 1909 Ind. App. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-land-improvement-co-v-ayres-indctapp-1909.