Paving Plus, Inc. v. Professional Investment, Inc.

382 N.W.2d 912, 1986 Minn. App. LEXIS 4056
CourtCourt of Appeals of Minnesota
DecidedMarch 4, 1986
DocketC3-85-1078
StatusPublished
Cited by2 cases

This text of 382 N.W.2d 912 (Paving Plus, Inc. v. Professional Investment, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paving Plus, Inc. v. Professional Investment, Inc., 382 N.W.2d 912, 1986 Minn. App. LEXIS 4056 (Mich. Ct. App. 1986).

Opinion

OPINION

LESLIE, Judge.

Paving Plus, Inc. appeals from a judgment discharging a mechanics' lien and releasing the property from the lien and from the trial court’s denial of a motion for post-trial relief. Paving Plus sought to recover the full contract price for paving work performed. The trial court failed to award Paving Plus any damages. We affirm.

FACTS

Appellant Paving Plus, Inc. was a Minnesota corporation engaged in the asphalt paving business. Gary Anderson was the president and sole owner of Paving Plus. Respondent Professional Investments, Inc. is a Minnesota corporation that owns and develops commercial property and is owned by respondent David F. Nixon.

In the spring of 1977, Nixon contacted Paving Plus to obtain an estimate to install black top in the parking lot area of a small, commercial shopping center. Anderson testified that because the parking lot was situated in a low, swampy area that had been filled with clay from the hill, Paving Plus employees recommended installing a six-inch asphalt mat over a four-inch limer-ock base. Nixon testified otherwise, stating that Paving Plus employees agreed that a six-inch mat was not necessary and that a two-inch mat would last for approximately three or four years. Pursuant to Nixon’s request, appellant re-estimated the cost of the job using only a two-inch asphalt mat. Both parties agreed to the terms of the contract, which required that the four-inch limerock base be installed and compacted. Appellant completed the paving work in the summer of 1977, and respondent paid the $9,000 contract price in full.

In 1978, Nixon contacted Paving Plus to do additional paving work at this job site. The parties entered into a $4,525 contract on June 9, 1978. This contract included repair work to certain areas of the 1977 job, installation of blacktopping surrounding a temporary bank building using a two and one-half inch asphalt mat, and paving a portion of the parking lot and alley. A portion of the contract required that Paving Plus use two and one-half inches of hot asphalt concrete “rolled and compacted to an even textured surface and for maximum density.” A portion of the contract also required that Paving Plus use material that meets Minnesota state specifications and complete all work “in a workmanlike manner according to standard practices.”

Appellant began work on approximately June 26, 1978 and completed work on July 28, 1978. Appellant returned in August to repair a small broken area and to patch some other small areas. At that time, Nixon refused to pay appellant for any of the work. Nixon offered to deposit the money in an escrow account pending completion of additional repairs, but appellant refused the offer. Appellant filed a mechanics’ lien against the premises and commenced a foreclosure action.

The testimony of witnesses at trial varied greatly. Anderson testified that Nixon claimed he did not have the money to pay appellant. Nixon testified that he refused to pay because the 1978 work began to break up almost immediately. The owner of the liquor store in the shopping center testified that the alley area behind the liquor store broke up immediately and that the area in front of the liquor store broke up within a few weeks. She also testified that the parking lot sank to a depth of three to four inches in front of the liquor store.

There was much testimony regarding the proper thickness of the asphalt. Nixon testified that the two-inch asphalt mat installed in 1977 held up well but that the two and one-half inch mat installed in 1978 failed almost immediately. Nixon admit *914 ted, however, that numerous defects existed in the 1977 work. Both Anderson and Anthony Louris, an expert witness called by Nixon, testified that a two and one-half inch asphalt mat, under normal shopping center traffic, would hold up for two to three years. Within three months after completion of the 1978 work, however, Nixon constructed a permanent bank building on the site using heavy construction equipment. Anderson testified that such equipment tended to cause the asphalt mat to break up faster. Anderson admitted, however, that heavy, tandem-wheeled gas transport and delivery trucks had operated over the two-inch asphalt installed in 1977.

Finally, there was testimony that appellant had improperly packed the subbase material. Louris testified that the Department of Transportation (DOT) standards applied to this contract and that they required a contractor to compact the subsoil using a pneumatic roller until there is no further evidence of consolidation. Anderson testified that the subbase material was compacted by Hubert Widmar, a contractor hired by Nixon to do the escalation and compaction of the subsoil for the entire shopping center. There was also testimony that appellant compacted the limestone base material using a heavy duty truck loaded with fourteen tons of material, which results in a greater compaction per inch than can be achieved with a pneumatic roller. Louris testified that in his opinion the subsoil would not be adequately compacted if a loaded dump truck were the only compacting equipment used on the job.

The trial court entered judgment awarding appellant nothing for its paving work and awarding costs and disbursements to respondents. Appellant moved the trial court for amended findings or in the alternative for a new trial, and the trial court denied the motion.

ISSUE

Was there sufficient evidence to support the trial court’s failure to award appellant damages for the work performed under the contract?

ANALYSIS

Minn.Stat. § 514.03 (1984) provides in part as follows:

With respect to any contract or improvement ***,**’' [i]f the contribution is made under a contract with the owner and for an agreed price, the lien as against him shall be for the sum agreed upon. * * * In all other cases, it shall be for the reasonable value of the work done, and of the skill, material, and machinery furnished.

Appellant argues that it fully performed the paving and repair contract, or at least substantially performed, and that therefore it is entitled to the full contract price. See E.C.I. Corporation v. G.G.C. Co., 306 Minn. 433, 436-37, 237 N.W.2d 627, 630 (1976).

In Ylijarvi v. Brockphaler, 213 Minn. 385, 7 N.W.2d 314 (1942), a case involving the drilling of a well, the supreme court discussed the contractor’s duty of substantial performance in building and construction contracts:

For present purposes, it is sufficient to say that substantial performance means performance of all the essentials necessary to the full accomplishment of the purposes for which the thing contracted for has been constructed, except for some slight and unintentional defects which can be readily remedied or for which an allowance covering the cost of remedying the same can be made from the contract price. Deviations or lack of performance which are either intentional or so material that the owner does not get substantially that for which he bargained are not permissible.

Id. at 390, 7 N.W.2d at 318; see Snider v. Peters Home Building Co., 139 Minn. 413, 415, 167 N.W.

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Bluebook (online)
382 N.W.2d 912, 1986 Minn. App. LEXIS 4056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paving-plus-inc-v-professional-investment-inc-minnctapp-1986.