R & M Oxford Construction, Inc. v. Smith

836 P.2d 454, 172 Ariz. 241, 117 Ariz. Adv. Rep. 35, 1992 Ariz. App. LEXIS 201
CourtCourt of Appeals of Arizona
DecidedJuly 21, 1992
DocketNo. 1 CA-CV 91-0049
StatusPublished
Cited by9 cases

This text of 836 P.2d 454 (R & M Oxford Construction, Inc. v. Smith) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R & M Oxford Construction, Inc. v. Smith, 836 P.2d 454, 172 Ariz. 241, 117 Ariz. Adv. Rep. 35, 1992 Ariz. App. LEXIS 201 (Ark. Ct. App. 1992).

Opinion

OPINION

TOCI, Judge.

This matter involves an action to foreclose a mechanic’s lien. The plaintiff con[243]*243tractor, R & M Oxford Construction, Inc. (“Oxford”) filed a notice and claim of lien, based upon a contract for the construction of masonry footings and concrete slabs for Irwin and Olive Smith’s home. When filing of the lien failed to generate payment, Oxford filed a complaint for breach of contract and lien foreclosure. This is an appeal from a judgment entered upon a jury verdict in favor of Oxford. The judgment foreclosed the mechanic’s lien, awarded damages for breach of contract, and denied damages to the Smiths on their counterclaim for breach of contract and wrongful lien.

I. ISSUE

The court instructed the jury that a handwritten signature is not the only method of signing a contract. The primary issue is whether such instructions allowed the jury to erroneously conclude that, as a result of Mr. Smith handing his business card to Oxford and agreeing to Oxford’s proposal, Oxford had lien rights pursuant to A.R.S. section 33-1002(B) because it executed “in writing a contract directly with the owner-occupant.” We hold that there is no evidence in the record which supports the legal conclusion that Mr. Smith executed a written contract by handing his business card to Oxford. The instructions were misleading because they allowed the jury to speculate that the parties executed a written contract. The Smiths are entitled to a new trial on their counterclaim for wrongful lien. The judgment is affirmed in part and reversed in part.

II. FACTS AND PROCEDURAL HISTORY

We view the evidence in a light most favorable to upholding the jury’s verdict. McFarlin v. Hall, 127 Ariz. 220, 619 P.2d 729 (1980). The Smiths contacted Oxford requesting a proposal to do masonry and concrete work. They eventually agreed on the construction of concrete footings and slabs for the foundation of the Smith residence at a total price of $17,654.41.

Oxford testified that, at their first meeting, he and Mr. Smith inspected the site and reviewed the blueprints. Oxford then worked up a bid for $17,701.00, which he gave to Mrs. Smith by telephone. Oxford later wrote the bid on a triplicate form and gave a copy of the bid to Smith at their second meeting. Smith verbally agreed to the proposal and gave Oxford his business card.

Although Smith disputed some of Oxford’s testimony concerning their meetings, he acknowledged that he reached an agreement with Oxford. He conceded that Oxford spoke with Mrs. Smith by telephone, giving her the price quotations and that Smith returned the call and verbally agreed to Oxford’s proposal. Although Smith testified that he never received a written contract or bid, he agrees the parties entered into an oral contract. In fact, he testified that he would have signed a written contract if he had been asked to do so.

By March or April of 1988, Oxford had completed all of its work. Smith made two payments in March, one for $1,000.00 and one for $2,000.00. On April 18, he made a payment of $6,725.00 for the slabs. The payments left an unpaid balance of $7,929.41.

After it rained in April, Smith noticed puddling of rainwater on the slabs. In May, Smith complained to Oxford. Oxford submitted a proposal to reduce the total price by $850.00 to $7,079.41. After a heated discussion in which Oxford demanded payment, Smith removed Oxford from the job.

On July 11, 1988, Oxford filed a notice and claim of mechanic’s lien against the property. The lien asserted that Oxford had an oral contract with the Smiths. Oxford later filed this suit for breach of an oral contract and foreclosure of the mechanic’s lien.

In response, the Smiths demanded that Oxford release the lien, claiming it was invalid. They filed a counterclaim alleging claims for breach of contract, statutory slander of title, and quiet title. They later amended the counterclaim to seek damages for wrongful lien under A.R.S. section 33-[244]*244420(A).1 In its reply to the amended counterclaim, Oxford alleged that the oral agreement had been “confirmed in writing by the parties.”

The case went to trial on Oxford’s claim for breach of contract for $7,079.41 and on the Smiths’ counterclaims for breach of contract for the cost to fix the concrete slabs and damages for wrongful lien. The jury awarded Oxford the full amount of $7,079.41 for breach of contract and denied the Smiths any recovery on their counterclaim. The court entered judgment in accordance with the verdict. After the court denied their motion for new trial, the Smiths filed a timely notice of appeal. We have jurisdiction pursuant to A.R.S. sections 12-2101(B) and (F)(1).

III. DISCUSSION

A. THE JURY INSTRUCTIONS

1. Standard of Review

It is reversible error for the trial court to give an instruction on a legal theory which is not supported by the facts in the record. Herman v. Sedor, 168 Ariz. 156, 158, 812 P.2d 629, 631 (1991). This is so because an unsupported instruction invites the jury to speculate as to possible nonexistent circumstances. Id. On appeal, we will view the instructions “as a whole and not piecemeal ... the test being, upon the whole charge, whether the jury will gather the proper rules to be applied in arriving at the correct decision____” Id. at 157, 812 P.2d at 630 (citation omitted).

2. The Instructions That “Any Mark Affixed to a Writing”is a Sufficient Signature

At the close of the evidence, the court gave the following instructions:

Affixing one’s handwritten signature is not the only method by which a paper writing may be considered as being signed.
Any mark affixed to a writing with the intent to authenticate it constitutes a sufficient subscription by the party sought to be charged.

The Smiths objected to these instructions, claiming that they misled the jury as to whether a valid mechanic’s lien existed pursuant to A.R.S. section 33-1002(B). We agree. We find that the facts in the record do not support the legal conclusion that a written contract was executed. Thus, the instructions impermissibly invited the jury to “speculate as to possible nonexistent circumstances.” Herman, 168 Ariz. at 158, 812 P.2d at 631 (citation omitted).

Arizona Revised Statutes section 33-1002 provides:

B. No lien provided for in this article shall be allowed or recorded by the person claiming a lien against the dwelling of a person who became an owner-occupant prior to the construction, alteration, repair or improvement, except by a person having executed in writing a contract directly with the owner-occupant.

The lien provided by this section arises only if an “owner-occupant” has “executed” a written contract. In this case, it is undisputed that Smith never affixed his signature on a contract. The question is whether Smith’s act of giving Oxford his business card satisfied the “execution in writing” requirement of section 33-1002(B).

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Bluebook (online)
836 P.2d 454, 172 Ariz. 241, 117 Ariz. Adv. Rep. 35, 1992 Ariz. App. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-m-oxford-construction-inc-v-smith-arizctapp-1992.