Parr v. Howell

82 S.E. 126, 74 W. Va. 413, 1914 W. Va. LEXIS 139
CourtWest Virginia Supreme Court
DecidedMay 19, 1914
StatusPublished
Cited by12 cases

This text of 82 S.E. 126 (Parr v. Howell) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parr v. Howell, 82 S.E. 126, 74 W. Va. 413, 1914 W. Va. LEXIS 139 (W. Va. 1914).

Opinion

POEEENBARGER, JUDGE:

This writ of error requires review of a judgment in favor of an owner against a contractor for the cost of completion of a house, incurred under the provisions of the standard builders contract, recommended, it is said, by the American Institute of Architects and the National Association of Builders. Howell bound himself to furnish the materials and labor for the building and complete it at a cost not exceeding the sum of $18,800.00, including his commission of 6 per cent., guaranteed it not to cost more than $18,800.00, and agreed to pay Parr any excess of cost, in case it should go beyond said sum.

A further provision of the contract authorized the owner, in ease of neglect or refusal of the contractor, at any time, to supply sufficient skilled labor or proper materials, or failure to prosecute the work promptly and diligently or to perform any duty imposed upon him by the contract, to terminate his employment and enter upon the premises and take possession, for the purpose of completing the work, of all materials, tools and appliances thereon, after three days notice to the contractor to provide such labor or materials and his neglect, failure or refusal-to do so. A condition precedent to such notice and termination was a certificate by the' architect, declaring such refusal or neglect. Failure to proceed after such certificate and notice authorized the owner to complete the building and charge the expense against the balance due the contractor, if any, and subjected the contractor to liability for any excess of such expense over the unpaid balance due him by the terms of the contract. In either case, the expense of completion and the damages to the owner were to be audited by the architect and his certificate thereof was to be conclusive upon the parties.

After having performed half of the work, or more, and received $15,000.00 from the owner on account thereof, the contractor ceased to furnish labor and materials, and the owner invoked the benefit of the clause of the contract just mentioned. -The architect certified the fact, the notice was served, and the owner took charge of the work. He claims to have expended, in the completion thereof, $2,328.54 for [416]*416labor and $4,566.73 for materials, total, $6,895.27, making the entire cost $21,895.27, which exceeds the contract limit by the sum of $3,095.27, and the architect certified the items of expense and total cost in accordance with his claim. The judgment complained of is for the alleged excess of cost and interest thereon from the date of the certificate.

The following grounds of defense were interposed: (3) a set-off of $1,137.10, the amount alleged to have been expended on work in excess of the $15,000.00 received; (2) breach of the contract by the owner, justifying non-performance by the contractor; (3) a verbal release of the limitation of cost and of liability for excess thereof; and (4) invalidity of the architect’s certificate on account of his failure to audit the expense of completion.

A rule of practice forbids reversal for any error the court may have committed in its rulings, in so far as they pertain to the first three grounds of defense. They excluded the evidence offered to establish said defenses and were not, in any way, made grounds of the motion for a new trial, nor-were they or any of them, made subjects of formal bills of exception. Exceptions were noted in the general bill of exception, embodying the evidence, but that alone is insufficient. State v. Heneghan, and Ireland v. Smith, decided at the present term and not yet reported; State v. Bingham, 42 W. Va., 234; Halstead v. Horton, 38 W. Va., 727; Gregory v. B. & O. R. Co.. 37 W. Va., 606. If a new trial is allowed upon some other ground, however, the propriety of these rulings will be tested and passed upon, as a precaution against error in such trial. Hence, consideration thereof will be postponed until the other assignments of error shall have been disposed of.

The certificate purporting to give the result of the audit contemplated by the contract, having been introduced, after verification by the testimony of the architect, cross-examination of the architect elicited the facts constituting the basis of the fourth defense. The certificate was founded upon the bills for labor and materials, paid by the owner, and the personal knowledge of the architect that some of the materials represented by the bills had been used in the building. "While he had had something to do with the selection of some of the [417]*417materials, be bad made no investigation of the subject matter of the certificate. On the completion of the building, he had examined it only far enough to enable him to certify its completion. He made no inquiry as to whether the cost included extras or better materials and workmanship than the specifications required.

A long instruction given at the instance of the plaintiff, submitting hypothetically the making of the contract, the breach thereof, the architect’s certificate of default, the notice to proceed, the certificate of failure to do so, the completion of the work and the certificate as to cost, directed the jury to find for the plaintiff the amount shown by the certificate as excess cost, if they should find the architect had certified said sum “after the auditing of the bills for such completion.” Two instructions requested by the defendant were refused. Both were predicated upon the evidence of lack of an audit of the expense, the first denying right of recovery, and tjbe second requiring the plaintiff to prove his claim otherwise than by the certificate, if no audit was in fact made.

Obviously the audit is the ground work, the very essence, of the certificate. It is the substitute for trial by a jury or court or a hearing by a commissioner or referee, while the certificate takes the place of the verdict, judgment or report. A certificate without the audit is analogous to a verdict, judgment or report, without a hearing or investigation, and, therefore, worthless as evidence. Under this contract, the architect was required to perform the function of an arbiter and presumably was selected for performance thereof on account of his peculiar fitness or qualification, by knowledge and skill, to work out a just and equitable result. An arbitration involves a. hearing and„consideration of the evidence. Arbitrators must hear and consider the evidence and their refusal to do so vitiates their award. Fluharty v. Beatty, 22 W. Va., 698; Ligon v. Ford, 5 Gratt. 10. In reason their mere neglect to. do so must have the same effect, and the admissions of the architect here constitute very considerable evidence of such neglect. They disclose matter which, if shown on the face of the certificate, would invalidate it. An architect cannot base his certificate, under such a clause [418]*418of a contract, only on the checks and vouchers produced by the owner. He must make a personal inspection of the work. Aetna Indemnity Co. v. Geo. A. Fuller Co., 73 Atl. 738. The amount paid out by the owner is not necessarily the amount properly chargable to the contractor. Hottel v. Reservoir Co., 92 Pac. 918. A certificate predieatetd only on the bills paid by the owner might include expenses of completion in a manner wholly different and more costly than that contemplated by the contractor.

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Cite This Page — Counsel Stack

Bluebook (online)
82 S.E. 126, 74 W. Va. 413, 1914 W. Va. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parr-v-howell-wva-1914.