Peter & Burghard Stone Co. v. Marion National Bank

153 N.E. 472, 198 Ind. 581, 1926 Ind. LEXIS 176
CourtIndiana Supreme Court
DecidedOctober 5, 1926
DocketNo. 25,301.
StatusPublished
Cited by5 cases

This text of 153 N.E. 472 (Peter & Burghard Stone Co. v. Marion National Bank) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peter & Burghard Stone Co. v. Marion National Bank, 153 N.E. 472, 198 Ind. 581, 1926 Ind. LEXIS 176 (Ind. 1926).

Opinion

Per Curiam.

The appellant stone company sued Henry W. Klausmann and the appellee bank, seeking to recover a personal judgment against Klausmann and to foreclose a mechanic’s lien on appellee’s building for certain marble work done in its construction and erection under a subcontract with Klausmann, to whom appellee had let the principal contract for erecting it. After the issues were made up, the action was consolidated with another action brought by Klausmann, seek *583 ing to recover a judgment against appellee for a balance alleged to be due him on his general contract for the construction and erection of the same building, and to foreclose a mechanic’s lien thereon, in which the stone company and other subcontractors were made parties to answer to their interests. The order of consolidation provided that the actions be consolidated for all purposes, and that the stone company thereafter be known as a cross-complainant, and that all its pleadings be designated accordingly. Thereafter, Henry W. Klausmann died, and after having been appointed and qualified as administratrix of his estate, his widow was substituted in his place, and is one of the appellants herein.

The consolidated cause was tried by the court, who found the facts specially and stated conclusions of law thereon in favor of appellee, to the effect that neither Elausmann’s estate nor the stone company was entitled to recover anything as against appellee, and that the mechanic’s liens filed by each of them against appellee’s building were void, but that the appellant stone company was entitled to recover a personal judgment against the administratrix of Klausmann’s estate for $6,807.96, with interest. Judgment was rendered in-conformity with the conclusions of law. Each appellant has assigned as error that the trial court erred in each of its conclusions of law upon the facts found, and the administratrix of the estate of Klausmann has also assigned as error the overruling of her motions to make the special finding of facts more specific, for a venire de novo and for a new trial, respectively.

The special finding states that on May 1, 1916, and for a long time before, appellee was and still is the owner of the real estate here involved, on which its bank building was erected. That appellee caused plans and specifications to be prepared by an architect for the *584 erection and construction of a seven story, steel frame bank building thereon, and received bids, but found them all too high. That it then conferred with Henry W. Klausmann and others, and it and they orally agreed that certain changes, forty-four in number, should be made in the plans and specifications, reducing the number of stories in the building to six, substituting reinforced concrete for steel in certain portions, and making other changes by which the cost was reduced. That after these changes in the original plans and specifications had been orally agreed upon, Klausmann and appellee entered into a written agreement which recited that Klausmann was to erect “a new bank building” for appellee for a price named, and that “before entering into a formal contract the parties desire that the architect shall prepare suitable plans and specifications that were orally agreed upon,” but that “Klausmann shall proceed with the preliminary work looking to the construction of the building,” and “as soon as the amended plans and specifications have been prepared a formal contract covering the execution of the work shall be promptly entered into by the parties.” That thereafter the architect prepared new plans and specifications, which embraced the changes orally agreed upon, and pursuant to the terms of the oral agreement and the preliminary written agreement, Klausmann and appellee, on May 26, 1916, executed a contract in writing, by which Klausmann agreed to furnish all materials and labor, and to complete the building “according to the plans and specifications now on file in the office of D. A. Bohlen & Son, Architects,” in consideration of which, appellee agreed to pay him the sum of $208,130 (being slightly more than the price fixed by the preliminary agreement). And the contract further provided that: “It is distinctly understood that the said H. W. Klausmann will do the work on a guaranteed *585 price of $208,130, but he will do the work complete on a basis of cost plus five per cent. The five per cent, and the cost of the building is not to exceed the sum of $208,130. In case that the cost of the building, plus the five per cent., is less than the sum of $208,130 the said H. W. Klausmann is to allow (appellee) the difference between the actual cost of the building, plus five per cent., and the sum of $208,130, mentioned as a guaranteed price. * * * In the event of the taking of mechanic’s liens upon the premises for any part of the work hereby contracted for, second party shall cause same to be discharged and fully released within twenty days after record of the same, unless they shall within such time furnish the owner with affidavit showing that there is, in the contractor’s opinion, a good defense thereto, and shall tender bond with sufficient surety conditioned for the defense of said lien,” etc. That, by reference, this contract made the new plans and specifications a part of it, and they contained provisions as follows: “Should any modifications in the plans and specifications or additions thereto be deemed advisable during the construction of the building, the architects will require of the contractor an estimate of the amount to be deducted from the contract sum or added thereto for said change or addition, and the contractor must obtain from the architects a written order authorizing said change before proceeding further. In the absence of such written orders, it will be assumed that the contractor has been fully compensated by other work omitted and he will be entitled to no extra moneys therefor. * * * If at any time, when a payment under the contract shall fall due, there shall be on record a mechanic’s lien attaching the premises, the architects will withhold their certificate and no payment will be made until such mechanic’s lien has been satisfied and canceled in so far as it affects these premises.” *586 That after the execution of this, written contract, on August 9, 1916, the appellant stone company, as subcontractor, entered into a written contract with said H. W. Klausmann, binding it to furnish the material and labor and do “all marble work” in the bank building for a price named, which contract contained a provision as follows: “XI. The said subcontractor hereby agrees to turn said work over to the contractor in good condition and free from all claims, encumbrances and liens for labor or materials, and to protect and save harmless the contractor and owners from all claims, encumbrances and liens growing out of the performance of this contract. * * * It is understood that the form of proposal adopted by the National Association of Marble Dealers shall become part of this contract, copy of which is herewith attached, covering items Nos. 1 to 6 inclusive.” And that the copy so attached contained a stipulation as follows: “18th.

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Cite This Page — Counsel Stack

Bluebook (online)
153 N.E. 472, 198 Ind. 581, 1926 Ind. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peter-burghard-stone-co-v-marion-national-bank-ind-1926.