Sunrise Acres, Inc. v. Ford-Wehmeyer, Inc.

598 S.W.2d 916
CourtCourt of Appeals of Texas
DecidedApril 17, 1980
DocketNo. 6060
StatusPublished
Cited by3 cases

This text of 598 S.W.2d 916 (Sunrise Acres, Inc. v. Ford-Wehmeyer, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunrise Acres, Inc. v. Ford-Wehmeyer, Inc., 598 S.W.2d 916 (Tex. Ct. App. 1980).

Opinions

HALL, Justice.

In August, 1974, appellant Sunrise Acres, Inc., solicited bids for the construction of a water distribution system in appellant’s subdivision in Travis County, Texas. The bid proposal forms, prepared and distributed by appellant’s engineer, indicated the nature of the job, the specifications for the job, and the types and quantities of the materials to be installed. Appellee Ford-Wehmeyer, Inc., submitted a bid of $31,-779.40. This sum was obtained by estimating the cost of thirteen items required for the project, which were separately set forth on the bid proposal forms and adding them for the total job estimate. Appellee’s bid was accepted by appellant in October, 1974, and a written contract was executed by the parties on the basis of the bid proposal. Although appellant’s subdivision was not within the City of Austin, it was within the City’s extraterritorial jurisdiction, and the contract expressly provided that it was subject to the City’s standard specifications and that the contractor was not entitled to final payment until the project had been accepted by the City.

The project was timely completed by ap-pellee, and it was approved and accepted by appellant and the City of Austin. Upon conclusion of the project, appellee presented a bill to appellant which was $845.00 in excess of the total contract price. Appellee claimed that $752.00 of this excess resulted from installation of cast iron fittings according to City’s specifications, and that the remaining $93.00 was for additional ductile pipe. Appellant paid appellee the original contract price of $31,779.40, but it refused to pay the additional $845.00. Appellee then perfected a mechanic’s and material-man’s lien against the subdivision property for its claim of $845.00.

This lawsuit originated as an action by appellant against appellee to have the mechanic’s and materialman’s lien declared void and set aside. After the suit was filed, appellant procured and filed an indemnity bond against the lien, under the provisions of Article 5472c, Vernon’s Tex.Civ.St. Merchants Mutual Bonding Company was surety on the bond. Thereafter, appellee filed a counterclaim against appellant and a third-party action against Merchants Mutual for recovery of the $845.00. Appellee also sought the recovery of reasonable attorney’s fees provided for in Article 5472c. Appellant and Merchants Mutual answered appellee’s suit with a general denial.

The case was heard by the court without a jury. Judgment was rendered on July 7, 1978, awarding appellee recovery against appellant and Merchants Mutual, jointly and severally, for $970.57, representing the $845.00 claim and $125.57 pre-judgment interest thereon, and attorney’s fees in the following amounts: $1,750.00 for the trial of the case, an additional $1,000.00 if the case was appealed to the Court of Civil Appeals, and an additional sum if an appeal was made to the Supreme Court of Texas.

Appellant Sunrise Acres, Inc., perfected this appeal from the judgment, but Merchants Mutual did not appeal. The appellate record contains express findings of fact and conclusions of law on the essential elements of appellee’s case. The findings and conclusions support the judgment. The record also contains a complete statement of facts.

In its brief, appellant sought reversal of the $845.00 awarded on appellee’s original claim on these grounds:

1. The record established as a matter of law that the project contract was a “lump sum” contract between the parties for $31,779.40.
2. Appellee, by its conduct, waived its right to collect additional compensation.
3. Appellee breached the contract terms by failing to secure appellant’s ap[918]*918proval in advance for any materials in excess of the contract specifications.
4. The contract expressly precluded claims for payment for extra materials in the amount claimed by appellee.

The parties devoted a large part of their briefs to the question of whether the contract was a “lump sum” contract or a “unit price” contract. However, on oral argument, appellant expressly abandoned its contention that the contract was for a “lump sum”, and thereby removed that issue from our consideration.

The defense of waiver is not available under a general denial, but must be specially pleaded under Rule 94, Vernon’s Tex.Rules Civ.Proc. Appellant did not plead waiver, and it may not raise the defense for the first time on appeal as a ground for reversing the judgment. Young v. De La Garza, 368 S.W.2d 667, 671 (Tex.Civ.App. — Dallas 1963, no writ). Accordingly, appellant’s contention 2 is overruled.

Appellant’s contention number 3 that appellee was required to secure appellant’s prior approval for any materials in excess of the contract specifications is based upon the following provision set forth in the contract under “General Specifications”:

3. Proposal quantities are for bidding purposes only. Final payment will be made only for work performed and accepted. The Contractor shall verify quantities before ordering materials.

It is our view that this complaint is without merit. There is an abundance of evidence that the contract was a “unit price” contract. Appellant’s engineer, who was appellant’s primary witness, admitted that fact. He also testified that a variance of not more than 3%, up or down, between the bid proposal and the actual cost of completion of a project of the nature and magnitude of the one in question was not uncommon and was accepted in the industry. Because of those circumstances (the “unit price” contract, and the possibility of the final need of more or less work or materials) contractual provision number 3, above, and others like it in the contract, emphasized that only the work actually performed and accepted would be paid for. Provision number 3 also cast upon appellee the responsibility for verifying that only the quantities of materials actually needed for the project were ordered. It says nothing about appellee securing prior verification of need from appellant. We agree with appel-lee that the purpose of the verification, when considered with the remainder of the provision and the other parts of the contract, was to cast upon appellee the expense of any materials ordered by it but not used in the project. Further, we agree with appellee that the evidence shows that it did not in fact use excess cast iron fittings in completing the project. The bid proposal called for six such fittings, and that was the number installed by appellee. The dispute in question arose in this manner: In the industry such fittings are ordered by the contractor from the supplier and billed by the contractor to the landowner by ton weight rather than as individual pieces. In the bid proposal forms submitted to appel-lee, appellant’s engineer listed the six cast iron fittings at 0.5545 ton weight. Appellee bid $1,600.00 per ton which produced the extended unit price of $887.20. After the project was completed it developed that the six fittings required under the contract and actually used by appellee should have been listed at 1.0245 tons, according to the Table of Standard Weights specified in the contract, which would have produced the correct extended unit price of $1,639.20.

On the trial of the case, appellant expressly conceded that it was not questioning the extra charge of $93.00 for additional pipe.

Appellant’s contention 3 is overruled.

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Bluebook (online)
598 S.W.2d 916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunrise-acres-inc-v-ford-wehmeyer-inc-texapp-1980.