Saum v. L. R. Foy Construction Co.

212 N.W.2d 648, 190 Neb. 783, 1973 Neb. LEXIS 800
CourtNebraska Supreme Court
DecidedNovember 30, 1973
DocketNo. 39006
StatusPublished
Cited by7 cases

This text of 212 N.W.2d 648 (Saum v. L. R. Foy Construction Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saum v. L. R. Foy Construction Co., 212 N.W.2d 648, 190 Neb. 783, 1973 Neb. LEXIS 800 (Neb. 1973).

Opinion

Smith, J.

In a suit for foreclosure of a mechanic’s lien claimed by a subcontractor, A. W. S'aum, in connection with con[784]*784struction of an addition to a warehouse building, the District Court awarded: (1) Foreclosure; (2) personal judgments for Saum and against the contractor, L. R. Foy Construction Co., Inc., and the landowner, General Wholesale Co-Operative Company; and (3) personal judgments for Foy and against Saum and General Wholesale. The court also dismissed a cross-petition by General Wholesale against the other parties, and General Wholesale appeals. Foy cross-appeals.

General Wholesale assigns for error: (1) Award of the personal judgment for Saum and against it; (2) award of a lien in favor of Saum and in excess of the amount found due Saum from Foy; and (3) dismissal of its cross-petition. Its only contention is that judicial admissions and conclusions of law sustain the assignments.

Foy on cross-appeal assigns for error the absence of a finding that General Wholesale owed it $2,898.85 for extra work, the sum being in addition to the judgment Foy recovered against General Wholesale.

We summarize the decretal parts relevant to the controversy. Provisions for foreclosure of the lien are in common form. The personal judgments are listed in the following table:

CREDITOR DEBTOR AMOUNT
S'aum General Wholesale $ 5,727.65
Saum Foy 5,727.65
Foy Saum 4,775.35
Foy General Wholesale 16,413.37

They were subject to- other decretal provisions. Saum and Foy possessing judgments against each other, the court adjudged that Saum recover the difference, $952.30, from Foy. Upon payment of the difference, or upon satisfaction of the Foy-General Wholesale judgment, from the proceeds of which Foy was to pay the $952.30, the lien was to be discharged. In the event of a foreclosure sale, Foy was to be paid $4,775.35 out of proceeds received by Saum. Then neither Foy nor Saum would [785]*785recover judgment against the other, and $10,685.17 would replace the $16,413.37 in the above table of the judgments. Provisions for prejudgment interest are not important, and they are excluded.

On December 3, 1968, Saum had filed his foreclosure petition in common form, alleging the following facts: Under the Saum-Foy contract, dated August 10, 1967, concrete floors on the warehouse addition were to be furnished and finished by Saum for $9,755.82. On October 17, 1967, performance was completed and accepted by Foy, Saum having received $4,000 in part payment from Foy, The balance, $5,755.82, was due and unpaid.

On January 6, 1969, Foy answered the petition and cross-petitioned against S'aum. It alleged the following facts. The construction work under the prime contract was pursuant to architectural drawings and specifications. The latter provision controlled the Saum-Foy contract, and S'aum was to perform in a workmanlike manner. The architect rejected the work for alleged failure of Saum to meet the plans and specifications, and for work not performed in a workmanlike manner. Foy therefore conformed the floors at a reasonable cost of $11,046.48, and it “may be reasonably required to expend” $15,000 in the future to complete the floors in conformance with the plans and specifications. Foy sustained damage of $30,046.48, and an accounting should be had.

On January 14, 1969, General Wholesale filed its answer to the petition of Saum and its “answer to the answer and cross-petition of Foy.” It admitted the contracts and all allegations of Foy’s pleading filed January 6, 1969, except “that . . . $15,000 ... is insufficient to place the floors in the condition required by the plans and specifications.” Meanwhile operation of the plant and warehouse would be curtailed. The additional performance by Foy because of the default by Saum secured only partial approval of the architect. The floor was so uneven that cases of groceries were shaken from fork [786]*786.trucks used in the storing and handling of merchandise. The conditions which were unknown became evident only after the floor and certain steel racks were in place under the contracts. Correction of the defects would necessitate replacement of large sections of flooring and installation of temporary staging. General Wholesale would sustain further damage of $100,000.

On February 20, 1970. Foy in answer to the cross-petition of General Wholesale, realleged its original answer and cross-petition, denied all affirmative allegations of Wholesale to the contrary, and specifically denied liability for any damage alleged by Wholesale.

On October ,12, 1971, Foy filed an amended pleading against Wholesale. All admissions in the forepart of the pleading were subject to the following allegations. Foy rendered the performance required of it under the prime contract and change orders pursuant to the contract. On January 11, 1968, the architect certified that there was due Foy $16,413.37 upon the prime contract “and authorized changes thereunder and requested . . . General Wholesale ... to pay . . . $10,413.37, withholding . . . $6,000 until the dispute involving the labor and work on the floors was determined, and . . . General Wholesale . . . has never paid any of such sum and there is due and owing . . . (Foy) from . . . General Wholesale . . . $16,413.37 together with any additional sum . . . for extras authorized pursuant to . . . (the) contract and change orders therefor.” Foy was under no responsibility or liability for any damage alleged by General Wholesale. An accounting among the three parties was necessary.

In open court at commencement of the trial on June 13, 1972, counsel for Foy clarified its position, stating: “Then for the record, we ... at this time inform the Court that we are abandoning any claim that may be contained in the cross-petition to conform to the — I mean, we will have no proof that we may be required to expend additional sums to complete and correct the [787]*787floor because as it now appears from our cross-petition against G. W. we now contend that the floor is completed and met specifications at the time it was so completed. I do not believe it is necessary to withdraw or strike all of the those pleadings that refer to this allegation and we are simply informing everybody that we do not make this claim any longer, and of course it would be contrary to our cross-petition against . . . G. W.” No one commented upon the statement, and the trial proceeded.

On the appeal by General Wholesale the first two assignments of error which relate to the Saum-General Wholesale personal judgment and the amount of the lien are considered together.

Possession of a statutory mechanic’s lien alone is not enough to entitle a subcontractor to recover a personal judgment against the owner of the premises. Parsons Constr. Co, v. Gifford, 129 Neb. 617, 262 N. W. 508 (1935); cf. Paxton & Vierling Steel Co. v. Barmore, 187 Neb. 54, 187 N. W. 2d 590 (1971). Section 52-102, R. R. S. 1943, makes no requirement concerning a contract between a subcontractor and the contractor. If the contract and delivery, or furnishing under it, are sufficient to create an indebtedness or liability, it is sufficient to create a lien. Id.

The first assignment of error is good; award of the personal judgment was erroneous.

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Saum v. LR FOY CONSTRUCTION CO., INC.
212 N.W.2d 648 (Nebraska Supreme Court, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
212 N.W.2d 648, 190 Neb. 783, 1973 Neb. LEXIS 800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saum-v-l-r-foy-construction-co-neb-1973.