Treasure Valley Plumbing & Heating, Inc. v. Earth Resources Co.

766 P.2d 1254, 115 Idaho 373, 1988 Ida. App. LEXIS 175
CourtIdaho Court of Appeals
DecidedDecember 9, 1988
Docket16696
StatusPublished
Cited by10 cases

This text of 766 P.2d 1254 (Treasure Valley Plumbing & Heating, Inc. v. Earth Resources Co.) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Treasure Valley Plumbing & Heating, Inc. v. Earth Resources Co., 766 P.2d 1254, 115 Idaho 373, 1988 Ida. App. LEXIS 175 (Idaho Ct. App. 1988).

Opinion

SUBSTITUTE OPINION

The Court’s prior opinion, dated September 8, 1988, is hereby withdrawn.

BURNETT, Judge.

This is an action brought by a construction subcontractor to foreclose a mechanic’s lien for work performed at the Delamar Silver Mine in Owyhee County. Following a non-jury trial, the district court entered judgment in favor of the subcontractor on the lien and on a claim for additional work outside the lien. The court also awarded costs and attorney fees. The mine owner has appealed, raising four issues: (1) whether the district court’s findings are supported by substantial evidence; (2) whether the district court abused its discretion in refusing to grant a new trial; (3) whether the subcontractor was entitled to a judgment against the mine owner for the additional work outside the lien; and (4) whether the trial court abused its discretion in making the awards of costs and attorney fees. For reasons explained below, we affirm the district court’s judg *375 ment with respect to all work performed, and we uphold the award of costs. However, we vacate the award of attorney fees and remand the case for further consideration of that issue.

The essential facts may be stated briefly. Pursuant to an oral agreement the subcontractor, Treasure Valley Plumbing and Heating, Inc., was hired by a general contractor, Mountain States Mineral Enterprises, Inc., to install necessary plumbing and a water supply system at the Delamar Silver Mine. The mine was owned predominantly by Earth Resources Company. Initially, the labor and materials to be provided by Treasure Valley were itemized in a purchase order prepared by Mountain States. Construction on the mine proceeded at a rapid pace. Unanticipated needs and unforeseen problems arose from time to time. As a result, Treasure Valley supplied labor and materials beyond the estimates set forth in the original purchase order. Often, but not always, these revisions were memorialized in change orders or new purchase orders prepared by Mountain States. Eventually the project — including Treasure Valley’s work — was successfully completed. However, cost overruns were substantial. Treasure Valley’s billings exceeded the original estimates. When Treasure Valley reviewed the records, it determined that it had been underpaid. Both Mountain States and Earth Resources denied any underpayment.

Negotiations with Mountain States and Earth Resources were stymied due to impending litigation between those parties. Accordingly, Treasure Valley filed a notice of claim of lien for $80,097.98 — a sum the company could document as being owed at that time. Treasure Valley then sued to foreclose the lien. In the meantime, Earth Resources filed a third-party complaint against Mountain States for indemnification against any recovery obtained by Treasure Valley. When Mountain States did not defend the action, Earth Resources obtained an order of default. Subsequently, the district court entered summary judgment for Earth Resources on Treasure Valley’s lien foreclosure suit, holding that the claim of lien, had been defective. On appeal to this Court, the summary judgment was reversed and the case was remanded for trial. See Treasure Valley Plumbing and Heating, Inc. v. Earth Resources Company, 106 Idaho 920, 684 P.2d 322 (Ct.App.1984). 1

At trial the parties explored the factual and accounting issues in great detail. As noted above, the district court ultimately entered judgment for Treasure Valley in an amount secured by the lien plus an amount due for work outside the scope of the lien. In addition, the court awarded costs and attorney fees. The mine property was ordered sold at a public auction to satisfy the aggregate judgment. This appeal followed.

I

Earth Resources first contends that the district court’s findings of fact are not supported by substantial evidence. Earth Resources further urges that because much of the evidence contained in the record is documentary, this Court may exercise de novo review over the factual issues. With neither of these contentions do we agree.

A

We first discuss the appropriate standard of review. It is axiomatic that an appellate court will apply differing standards of review to lower court decisions, depending upon the nature of the issues presented. Questions of law or “mixed” questions of law and fact ordinarily call for free review on appeal. See generally IDAHO APPELLATE HANDBOOK, Standards of Appellate Review in State and Federal Courts 3.2.1 (Idaho Law Foundation, Inc. 1985) (hereinafter cited as HANDBOOK). One such question of law, enti *376 tling an appellate court to exercise free review, is the interpretation of unambiguous contracts. See, e.g., Shipley v. Cook, 109 Idaho 537, 708 P.2d 942 (Ct.App.1985).

Over questions of fact, the scope of appellate review is more limited. A trial court’s findings will be overturned only upon a showing of clear error. I.R.C.P. 52(a). Clear error, in turn, will not be deemed to exist if the findings are supported by substantial, albeit conflicting, evidence. Rasmussen v. Martin, 104 Idaho 401, 659 P.2d 155 (Ct.App.1983). Questions of credibility and the weight of the evidence are matters uniquely within the province of the trial court. Id. The “clear error” standard of review applies regardless of whether the evidence adduced below is documentary or testimonial. HANDBOOK § 3.3.4.2.

Here, we have not been asked to interpret the legal import of any contracts. Rather, our task is to determine whether the trial court found facts consistent with a body of evidence that happened to consist largely of documents. On such an issue, the appropriate standard of review is the deferential “clear error” standard. Accordingly, we now apply that standard.

B

The salient issue at trial was whether or not Treasure Valley had been paid fully for the services and materials it provided. The trial judge noted that when the job was completed, a conference was held among the parties in an effort to reach a final accounting. The points of discussion included change orders and other “extras” throughout the project. The judge found that the parties reached an agreement embracing work performed in addition to that anticipated in the original purchase order. The agreement reflected work for which written change orders had not been sent to Treasure Valley. A large portion of the unpaid obligation was represented by a document known as change order number 8. The agreement also encompassed repair work on a pipeline laid pursuant to the original purchase order but damaged by another subcontractor on the site.

The judge determined that the negotiated agreement had not been performed by Earth Resources and that change order number 8 had not been paid. He found that Treasure Valley was owed $105,482.27 for unpaid work, materials and expenses incurred on the Delamar mine project.

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Bluebook (online)
766 P.2d 1254, 115 Idaho 373, 1988 Ida. App. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/treasure-valley-plumbing-heating-inc-v-earth-resources-co-idahoctapp-1988.