Savoree v. Industrial Contracting & Erecting, Inc.

789 N.E.2d 1013, 2003 Ind. App. LEXIS 1040, 2003 WL 21362729
CourtIndiana Court of Appeals
DecidedJune 13, 2003
Docket84A01-0212-CV-487
StatusPublished
Cited by9 cases

This text of 789 N.E.2d 1013 (Savoree v. Industrial Contracting & Erecting, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Savoree v. Industrial Contracting & Erecting, Inc., 789 N.E.2d 1013, 2003 Ind. App. LEXIS 1040, 2003 WL 21362729 (Ind. Ct. App. 2003).

Opinion

OPINION

RILEY, Judge.

STATEMENT OF THE CASE

Appellants-Defendants, Mark and Karen Savoree (collectively "the Savorees"), appeal the trial court's award in favor of Appellee-Plaintiff, Industrial Contracting & Erecting, Inc., ("Industrial") on Industrial's quasi contract claim for unjust enrichment.

We reverse.

ISSUE

The Savorees raise one issue on appeal, which we restate as follows: whether the trial court erred in determining that Industrial, as a subcontractor, may recover directly from the Savorees, as the project owners, regarding a quasi contract claim for unjust enrichment.

FACTS AND PROCEDURAL HISTORY

On September 27, 2002, the instant case was presented to the Vigo County Superi- or Court in the form of a Joint Stipulation of Facts and Trial Briefs submitted by each party. The Joint Stipulation of Facts included the following:

[Industrial] and [the Savorees], by their respective counsel have agreed on and submit their Joint Stipulation of Facts (the "Stipulation") for the resolution of this cause. Defendant, Construction Concepts of Indiana, Inc. ("CCI"), fails to appear for trial. Industrial and the Savorees stipulate to the following facts:
1. [The Savorees], husband and wife, are owners of the following described real estate located in Vigo County, State of Indiana: [legal description of real estate omitted].
2. On or about June 15, 1998, the Savo-rees, as owners, and CCI entered into a Standard Form of Agreement between Owner and Contractor AIA Document A101-1997 (the "Contract") and a No Lien Contract for alterations and improvements on the above-described real estate for an automotive dealership (the "Project"). Industrial never reviewed the Contract prior to this litigation. A true and accurate copy of the Contract was submitted to the Court with the Savorees' Motion to Dismiss or Stay Action and to Compel Arbitration filed with the Court August 25, 1999.
3. Pursuant to the Contract, the contract sum to be paid by the Savorees to *1015 CCI for the alterations and improvements was One Million Two Hundred Seven Thousand Eight Hundred Eleven Dollars ($1,207,811.00) (Article 4.4.1). This sum was subsequently reduced by agreement and through change orders to $1,152,000.00.
4. On or about August 4, 1998, CCI, as general contractor, submitted a Purchase Order to Industrial for metal panels and steel building modifications for the sum of Eight Thousand Nine Hundred Twenty-Five Dollars ($8,925.00) (the "Work"). Attached hereto as Plaintiff's Exhibit "A," is a true and accurate copy of said Purchase Order.
5. In or about August and September, 1998, CCI ordered additional Work to be completed by Industrial on the Project, which Work included cutting of door frame openings, installation of guard pipe, punch plates, door trim and angle plates, cutting and delivering of materials.
6. Industrial performed the ordered Work, which Work was accepted by the Contractor. Its Work has not formally been accepted by the Savorees although the Savorees do not dispute that the Work was performed.
7. On September 10, 1998, CCI abandoned its work on the Project and indicated to the Savorees it refused to continue its work on the Project unless the Savorees agreed to certain conditions and modifications to the Contract. A copy of CCI's notice to the Savorees is attached hereto as Defendant's Exhibit “137
8. At the time CCI abandoned the Project, CCI had submitted two pay applications to the Savorees, both of which had been paid in full by the Savorees.
9. On September 15, 1998, five (5) days after it abandoned the Project, CCI submitted a third payment application to the Savorees. This payment application included the Work performed by Industrial in August and September, 1998. Pursuant to the terms of the Contract, the Savorees refused to make payment on this payment application because of CCI's abandonment.
10. Thereafter, after negotiations failed, on October 9, 1998, the Savorees exercised their contractual right to terminate the Contract with CCI due to CCI's refusal to commence and continue work. This issue was the subject of an arbitration proceeding between CCI and the Savorees which resulted in the decision that the termination by the Savo-rees was proper and was exercised within their contractual rights. A copy of the arbitration award is attached hereto as Defendant's Exhibit "2."
11. Industrial submitted invoices to CCI on September 11, 1998, in the sum of Thirteen Thousand Three Hundred Ninety Dollars ($13,890.00), September 16, 1998, in the sum of Three Thousand One Hundred Sixty-Five Dollars and Forty-Four Cents ($3,165.44) and September 24, 1998, in the sum of One Thousand Four Hundred Twenty-Nine Dollars and Five Cents ($1,429.05) which represented all work performed by Industrial on the real estate owned by the Savorees. Attached hereto and marked as Plaintiff's Exhibits "B," "C," and "D" are true and accurate copies of said invoices.
12, CCI never made payment to Industrial on the submitted invoices.
13. On October 29, 1998, Industrial recorded a mechanic's lien against the Sa-vorees property, which lien has since been released due to the existence of a statutory no-lien contract entered into between CCI and the Savorees.
*1016 14. The Savorees have not made payment to Industrial despite Industrial's demand for payment from the Savorees.
15. On December 2, 1998, Industrial served a notice to the Savorees pursuant to I.C. § 32-8-3-9 indicating to the Sa-vorees that Industrial intended to hold the Savorees personally liable for any amount then due or which thereafter became due and owing to CCI from the Savorees. Due to the arbitration award, no amount was due or thereafter became due and owing CCI from the Savorees; and this claim is, therefore, moot and is withdrawn from consideration. The only remaining claim by Industrial against the Savorees is based upon the equitable theories of quantum meruit and unjust enrichment.
16. The Savorees have no specific knowledge concerning the seope of Work completed by Industrial on this Project but have expressed no complaints about the quality of Industrial's Work.
17. Other than correspondence between their respective counsel, the Savo-rees have not been in contact with nor have they had any communication whatsoever with Industrial either while Industrial performed the Work on the Project or after CCI abandoned the Project. The Savorees have never made any representation to Industrial that the Savo-rees would make payment to Industrial for the work performed by Industrial on this Project.
18. Had CCI completed work on the Project, the Savorees had committed to pay CCI the sum of One Million One Hundred Fifty-Two Thousand Dollars ($1,152,000.00) after taking into account agreed upon and approved change orders.

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Bluebook (online)
789 N.E.2d 1013, 2003 Ind. App. LEXIS 1040, 2003 WL 21362729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/savoree-v-industrial-contracting-erecting-inc-indctapp-2003.