Superior Concrete Pumping, Inc. v. David Montoya Construction, Inc.

773 P.2d 346, 108 N.M. 401
CourtNew Mexico Supreme Court
DecidedMay 1, 1989
Docket17995
StatusPublished
Cited by16 cases

This text of 773 P.2d 346 (Superior Concrete Pumping, Inc. v. David Montoya Construction, Inc.) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Superior Concrete Pumping, Inc. v. David Montoya Construction, Inc., 773 P.2d 346, 108 N.M. 401 (N.M. 1989).

Opinion

OPINION

RANSOM, Justice.

This is an appeal from a judgment entered on an open account in favor of the plaintiff, Superior Concrete Pumping, Inc. (Superior). The defendant, David Montoya Construction, Inc. (Montoya), contends that the trial court erred in finding an open account, in awarding attorney fees, in calculating the rate of interest on the open account, and in finding a valid modification of the contract that was the subject of this dispute. We affirm.

Superior is a concrete pumper service that pumped concrete for Montoya, a concrete contractor. The parties had maintained a business relationship for approximately four years. In October 1985, Superior and Montoya entered into an oral agreement for Superior to pump concrete for Montoya on the “Blount” job, for which Superior would be paid $5.00 per cubic yard of concrete pumped.

In late January 1986, the owner of Superior, Ronald Vaughn, met with Montoya to discuss problems that Superior was encountering with the Blount job. Superior’s cubic yard price had been based on Montoya’s guarantee of minimum pours of approximately 200 yards per pour on certain basement slabs. This guaranteed volume was necessary to cover Superior’s set-up and labor costs of each pour. The first two pours, however, averaged only slightly more than 100 yards, and Vaughn informed Montoya that the situation was not working. According to Vaughn, he and Montoya modified the agreement to provide for an hourly rate. Superior would continue to bill at $5.00 per cubic yard for the balance of the job, but, at its completion when Montoya could recover back charges from the general contractor, Montoya would reimburse Superior the difference between the cubic yard price and the hourly rate. Although a specific hourly rate was not established at the time of the modification, Vaughn claimed that it was understood to be $75.00 per hour plus $1.50 per cubic yard. To support this claim, Vaughn testified that Superior billed at this rate on the same job when the general contractor used its service separately. In addition, Superi- or submitted a document that represented Vaughn’s recordation of the individual pours, which detailed the pour’s cost at $5.00 per cubic yard, at $65.00 per hour, and at $75.00 per hour. Vaughn testified that he kept this record throughout the Blount job and that he kept Montoya’s estimator abreast of these cost amounts.

The trial court found that Montoya purchased the services of Superior on open account over a lengthy period of time. It found further that Superior and Montoya verbally agreed to modify the original Blount contract to reflect an hourly charge, that Superior would not have completed the Blount job without the modification in the contract, that Superior continued to work on the job based on said modification, and Montoya was estopped to assert that the agreement was not so modified. The trial court also found that Superior clearly disclosed to Montoya that unpaid invoices would incur late charges of two percent per month on the open account.

Open Account. Montoya’s first two points rest upon whether the trial court erred in finding the existence of an open account. Relying upon Heron v. Gaylor, 46 N.M. 230, 126 P.2d 295 (1942), this Court in Gentry v. Gentry, 59 N.M. 395, 285 P.2d 503 (1955), defined an open account as follows:

[A]n account usually and properly kept in writing, wherein are set down by express or implied agreement of the parties concerned a connected series of debit and credit entries of reciprocal charges and allowances, and where the parties intend that the individual items of the account shall not be considered independently, but as a continuation of a related series, and that the account shall be kept open and subject to a shifting balance as additional related entries of debits or credits are made thereto, until it shall suit the convenience of either party to settle and close the account, and where, pursuant to the original, express, or implied intention, there is to be but one single and indivisible liability arising from such series of related and reciprocal debits and credits, which liability is to be fixed on the one party or the other, as the balance shall indicate at the time of settlement or following the last pertinent entry of the account.

Id. at 398, 285 P.2d at 505-06.

Superior introduced into evidence ledger sheets that evinced the existence of an open account with Montoya as defined by the Gentry court. The ledger established that Montoya’s account consisted of “a connected series of debit and credit entries of reciprocal charges and allowances.” See id. Furthermore, Montoya’s bookkeeper acknowledged that Montoya had engaged the services of Superior for several jobs occuring simultaneously with the Blount job and that it did not earmark specific payments for specific jobs charged to its account.

Without addressing the substantial evidence to support a finding of an open account, Montoya argues that each transaction between the parties that transpired over the course of their business relationship should be viewed as separate and distinct and should be treated independently as opposed to a continued series of related transactions. See id. Relying on Southern Union Exploration Co. v. Wynn Exploration Co., 95 N.M. 594, 624 P.2d 536 (Ct.App.), cert. denied, 95 N.M. 593, 624 P.2d 535 (1981), cert. denied, 455 U.S. 920, 102 S.Ct. 1276, 71 L.Ed.2d 461 (1982), Montoya maintains that this was not an open account because the Blount job was a single transaction whose terms were defined by contract and it could not be settled or closed at the convenience of the parties. The fact that the contractual agreement regarding the Blount job could not be closed at the convenience of either party had no bearing on either the right of Montoya or Superior to settle and close the existing open account. Furthermore, rather than tracking very closely the facts of Southern Union as alleged by Montoya, these facts are similar to Wolf & Klar Cos. v. Garner, 101 N.M. 116, 679 P.2d 258 (1984), in which this Court affirmed the finding of an open account when a ledger sheet disclosed a series of debit and credit entries made over the course of dealing between the parties.

We affirm the trial court’s finding of an open account. Additionally, as Montoya only claims that the attorney fees awarded were unauthorized because the account in question was not an open account, see NMSA 1978, § 36-2-39 (Repl.Pamp.1984), we also affirm the trial court’s award of attorney fees authorized by the statute. See Wolf & Klar Cos., 101 N.M. at 117-18, 679 P.2d at 259-60.

Interest rate per agreement. Montoya also attacks the trial court’s finding that Superior clearly disclosed to Montoya that unpaid invoices would incur late charges of two percent per month on the open account. Montoya maintains there was no evidence that it agreed to the imposition of a rate higher than that authorized by statute. See NMSA 1978, § 56-8-5 (Repl.Pamp.1986). “In current or open accounts there shall not be collected more than fifteen percent interest annually ...

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Bluebook (online)
773 P.2d 346, 108 N.M. 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/superior-concrete-pumping-inc-v-david-montoya-construction-inc-nm-1989.