White River Development Co. v. Meco Systems, Inc.

806 S.W.2d 735, 1991 Mo. App. LEXIS 302, 1991 WL 23730
CourtMissouri Court of Appeals
DecidedFebruary 28, 1991
Docket16835
StatusPublished
Cited by21 cases

This text of 806 S.W.2d 735 (White River Development Co. v. Meco Systems, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White River Development Co. v. Meco Systems, Inc., 806 S.W.2d 735, 1991 Mo. App. LEXIS 302, 1991 WL 23730 (Mo. Ct. App. 1991).

Opinion

PREWITT, Judge.

Plaintiff sought damages against defendant Meco Systems, Inc. (Meco) and defendant Fidelity and Deposit Company of Maryland (Fidelity). Plaintiff’s claim was based on breach of a construction contract which it had with Meco to construct condominium residential buildings consisting of two four-plexes and two eight-plexes on the same tract. Fidelity was the surety on a performance bond and a “Labor and Material Payment Bond” provided by Meco on the project.

Meco filed a counterclaim, seeking additional sums which it claims were due it under the contract and change orders amending it, and sought to impose a mechanics lien on a portion of the tract. Meco brought in as parties Great Southern Savings and Loan Association and Great Southern Financial Corporation. Great Southern Financial Corporation was the trustee and Great Southern Savings and Loan Association the beneficiary of a deed of trust on the property. Great Southern Savings and Loan Association loaned plaintiff funds for construction of the project.

Following nonjury trial, the trial court made extensive findings of fact and entered judgment in favor of plaintiff and against Meco and Fidelity on the petition for $189,464.74. Meco was denied recovery on its counterclaim. Meco contends that the trial court erred in its findings of fact and determination of law in several respects, including that the award of damages “was against the weight of the substantial evidence”.

I. REVIEW STANDARDS

Review is under Rule 73.01(c). As that rule is interpreted, this court is to affirm the judgment unless there is no substantial evidence to support it, the judgment is against the weight of the evidence, errone *737 ously declares the law, or erroneously applies the law. Plunkett v. Parkin, 788 S.W.2d 356, 357 (Mo.App.1990). A judgment is to be set aside because it is against the weight of the evidence only with caution and with a firm belief that the decree or judgment is wrong. Id.

“Weight of the evidence” means its weight in probative value, not its quantity. Looney v. Estate of Eshleman, 783 S.W.2d 164, 165 (Mo.App.1990). “The weight of evidence is not determined by mathematics, but on its effect in inducing belief.” Id.

Due regard is given to the trial court’s determination on the credibility of witnesses. Rule 73.01(c)(2); Centennial Insurance Co. v. International Motor Car, 581 S.W.2d 883, 885 (Mo.App.1979). The trial judge as the trier of fact can disbelieve testimony even where uncontradicted. Robinson v. Estate of Robinson, 768 S.W.2d 676, 677 (Mo.App.1989).

II. DENIAL OF MECO’S COUNTERCLAIM

A. Monetary Amount

Meco’s first point states that the trial court erred in finding that the contract between it and plaintiff “was a guaranteed maximum cost contract” and in denying it recovery on its counterclaim because the $102,333.50 it sought was based upon pay applications approved for payment by plaintiff’s president. Not all were paid because the construction loan at Great Southern Savings and Loan Association was exhausted by prior payments, including $1,317,-405.76 to Meco. Some payments were made to Meco thereafter from sales of condominiums on the project. In the findings of fact, the trial court determined that Meco’s claim was not “proved by substantial evidence introduced by Meco.”

The parties agree that numerous changes were made in the plans and specifications which would entitle Meco to more than the contract initially provided. They disagree as to the extent of the modifications and whether Meco was entitled to anything more than it received.

Homer A. White III, was the president and “major stockholder” of plaintiff. As such, he executed the contract between plaintiff and Meco. White was on the premises during construction and was plaintiff’s primary representative on the project. White testified that he signed, giving approval to, all the pay applications made by Meco and usually picked up the checks from Great Southern Savings and Loan Association and took them to Meco. The contract provided for a “maximum cost” of $1,247,667.00. White testified that through the 13th pay application of Meco the cost of the project reached $1,225,-201.17 and he calculated that the additional cost to complete it would be $185,761.00. This would bring the cost to $1,410,962.17.

Plaintiff presented evidence through White's daughter, an employee of plaintiff, questioning certain items included in the pay applications, totaling $5,657.43. During trial, Meco reduced its claim on its counterclaim from $104,760.53 to $102,-333.50, apparently conceding that there had been overbilling of $2,427.03.

The trial court found that Meco was overpaid $5,103.52, for items never delivered or overbilled. As the trial court included them in the damages awarded plaintiff, it necessarily found that the items were included in the applications of Meco which had been paid. In the judgment plaintiff was awarded slightly over 90% in amount of the items questioned.

By White approving the applications and questioning only a few of the items contained in them, Meco established with substantial evidence it was entitled to the amount finally sought. We have a firm belief that any contrary finding was against the weight of the evidence. Whether the contract was a “guaranteed maximum cost” contract or a “cost plus a fee” contract need not be decided as the parties agree that changes were made raising the contract limits. White approved the pay applications and, in effect, agreed that Meco was entitled to payment except for the items and amounts questioned.

This court is obligated to order the judgment that should have been entered effec *738 tive on the date of the judgment in the trial court. In re Marriage of Runez, 666 S.W.2d 430, 433 (Mo.App.1983); Rule 84.14. Meco is entitled to recover $102,333.50 on its counterclaim, with interest from October 30, 1986, (thirty days after its last payment) as provided by § 408.020, RSMo 1986, effective as of the date of the judgment, January 9, 1990.

B. Denial of Mechanic’s Lien

Meco sought a mechanic’s lien, but that was denied by the trial court because it was not entitled to recover any amount from plaintiff, and because it failed to give the notice required by § 429.012 RSMo 1986. That section is set forth marginally: 1

Meco admits that it did not give the notice. Relying primarily upon Overberg Decorating Center, Inc. v. Selbah Properties, 741 S.W.2d 879

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Bluebook (online)
806 S.W.2d 735, 1991 Mo. App. LEXIS 302, 1991 WL 23730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-river-development-co-v-meco-systems-inc-moctapp-1991.