Port-A-Weld, Inc. v. Padula & Wadsworth Construction, Inc.

984 So. 2d 564, 2008 Fla. App. LEXIS 7224, 33 Fla. L. Weekly Fed. D 1358
CourtDistrict Court of Appeal of Florida
DecidedMay 21, 2008
Docket4D07-2104, 4D07-391
StatusPublished
Cited by9 cases

This text of 984 So. 2d 564 (Port-A-Weld, Inc. v. Padula & Wadsworth Construction, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Port-A-Weld, Inc. v. Padula & Wadsworth Construction, Inc., 984 So. 2d 564, 2008 Fla. App. LEXIS 7224, 33 Fla. L. Weekly Fed. D 1358 (Fla. Ct. App. 2008).

Opinion

984 So.2d 564 (2008)

PORT-A-WELD, INC., Appellant,
v.
PADULA & WADSWORTH CONSTRUCTION, INC., Appellee.

Nos. 4D07-2104, 4D07-391.

District Court of Appeal of Florida, Fourth District.

May 21, 2008.
Rehearing Denied July 11, 2008.

*566 Herbert B. Dell of Herbert B. Dell, P.A., Fort Lauderdale, for appellant.

James B. Boone, Sunrise, for appellee.

TAYLOR, J.

In these appeals, consolidated for opinion purposes, Port-A-Weld, Inc. (Port-A-Weld) appeals a final judgment which awarded it money damages but declared appellee Padula & Wadsworth Construction, Inc. (Padula) the prevailing party for purposes of attorney's fees and costs. Both parties appeal a subsequent order which determined that they were both prevailing parties and effectively denied each party's claim for attorney's fees and costs. We reverse.

Padula was the general contractor on a project known as the West Central Bus Complex, which was owned by the School Board of Broward County. Port-A-Weld was a subcontractor hired by Padula to build metal pan stairs and other steel work in the complex for $150,000. Port-A-Weld fabricated the stairs at its shop and installed them on the job site on February 5, 2003. After Padula notified Port-A-Weld in writing that the stairs had failed inspection on May 15, 2003, Port-A-Weld demolished and rebuilt the stairs by June 12, 2003. The stairs then passed inspection.

Port-A-Weld agreed to pay Padula $900 for re-pouring the concrete as "back charges" from the contract. It also agreed to a $411.10 back charge for damage to a countertop caused by one of Port-A-Weld's employees. The contract price, including the change orders, totaled $176,314.40. The parties stipulated that Padula paid only $142,377.76. That left $33,936.64 unpaid, despite demand for payment. On January 12, 2004, about seven months after the stairs passed inspection, Padula notified Port-A-Weld of a new back charge of $6,000. Padula labeled this back charge as liquidated damages for twelve days of delay at $500 a day. Before assessing this charge, Padula had not notified Port-A-Weld that it was going to be charged delay damages. One week later, Padula notified Port-A-Weld about another back-charge of $17,000 in liquidated damages for thirty-four days of delay. The contract contained no liquidated damages provision and the School Board did not charge Padula any delay penalties for this project. At trial, Padula's counsel informed the court that they were now seeking $800 a day for 58 days of delay caused by Port-A-Weld, totaling $46,400.

Padula incurred $560 in concrete costs to redo the job, $900 for concrete finishers, and $260 for renting a dumpster for removal of the demolished stairs. It also incurred labor costs of $5,000.40, mostly for cleanup and some for helping to pump concrete into the second set of stairs.

Port-A-Weld filed a single-count complaint against Padula seeking $33,936.74, plus prejudgment interest due from July 25, 2003, attorney's fees and costs. Port-A-Weld later amended its complaint to allege two counts for breach of contract and unjust enrichment. The same remedies *567 were sought in the amended complaint. During closing argument, Port-A-Weld's counsel stated that it sought $33,502.04 on Count I and an additional $434.60 on Count II in connection with an unsigned change order.

Padula filed a counterclaim seeking delay damages and other offsets. In his opening statement, Padula's counsel claimed that Padula incurred over $60,000 in damages, including approximately $10,000 in out-of-pocket expenses and a $50,000 balance attributable to the alleged delay. Padula's president testified that he was seeking $54,961 in damages from Port-A-Weld in back charges, the vast majority of which involved the delay damages.

On June 14, 2006, the trial court orally announced its decision, making specific findings primarily in favor of Port-A-Weld. The court first stated that it was denying the counterclaim for delay damages, as there was no proof that a date certain for performance was ever established and because the damages alleged were too speculative. It found that Port-A-Weld was entitled to the $150,000 contract amount (of which $142,377.76 had been paid), plus the amounts called for in all but one of the change orders. However, the court held that this sum had to be reduced by a 2% retainage, concluding that the school board had not paid the last 2% on the project. The court stated that Padula would be responsible for this 2% amount when it received that sum from the School Board. The court also found setoffs for certain consequential damages to Padula. One of the items was the $5,000 claim for labor. However, rather than award the full amount, the trial court awarded only a $3,000 setoff for this item. It also found that Port-A-Weld was entitled to $434.60 on the unjust enrichment count as to Change Order Number 12.

The court directed the parties to prepare a written final judgment based on its oral rulings. On June 20, 2006, before entry of the final judgment, Padula tendered Port-A-Weld a check for $24,649.53, the payment amount orally specified by the court. Port-A-Weld rejected the tender. On July 3, 2006, Port-A-Weld made a motion for the court to determine the form of the final judgment and to compute prejudgment interest. Port-A-Weld also moved to tax costs in the amount of $3,168.75, pursuant to § 57.041, Fla. Stat. On September 12, 2006, the trial court held a hearing on the motions. It held that because of Padula's tender, prejudgment interest would be cut off as of June 20, 2006. The trial court orally ruled that the principal plus prejudgment interest owed on the judgment was $24,250.10. It entered a written order allowing Padula to pay the sum of $24,250.10 into the court registry.

On January 10, 2007, the trial court resumed the hearing, noting that it had not yet entered a final judgment. The court declined to award any more interest after the date of its prior ruling, because the delay was caused by Port-A-Weld's unsuccessful arguments about the amount of interest. Port-A-Weld argued that Article V of the subcontract agreement entitled it to prejudgment interest at 18%, as well as attorney's fees.

Article VI, (D) of the subcontract states:

Subcontractor and Contractor agree that in the event arbitration proceedings or litigation is initiated by either party, the non prevailing party shall be liable for all arbitrator's fees and costs, attorney's fees and court costs incurred by the prevailing party at all levels of proceedings or negotiations. For the purposes of this Agreement, a party shall not be considered as a "prevailing party" *568 if its recovery shall be less than 75% of its claim amount.

Port-A-Weld argued that the 75% prevailing party threshold in the contract was against public policy under § 57.105, Fla. Stat. The trial court disagreed and determined that Padula was the prevailing party based upon the language of the contract. On January 11, 2007, the trial court entered an "Order on Amounts Owed, Prejudgment Interest and Determination of Prevailing Party." The order states that Port-A-Weld shall recover $20,434.04, plus pre-judgment interest in the amount of $3366.06, for a total of $24,250.10. The court reserved jurisdiction to determine the "amount of attorney's fees and costs to be awarded to the Defendant who is the prevailing party under Count I of the Amended Complaint as provided in the contract at Article VI, paragraph D, which shall be a setoff against both the sum awarded to the Plaintiff and previously deposited in the Court Registry . .

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Cite This Page — Counsel Stack

Bluebook (online)
984 So. 2d 564, 2008 Fla. App. LEXIS 7224, 33 Fla. L. Weekly Fed. D 1358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/port-a-weld-inc-v-padula-wadsworth-construction-inc-fladistctapp-2008.