Wright v. . Reusens

31 N.E. 215, 133 N.Y. 298, 45 N.Y. St. Rep. 183, 88 Sickels 298, 1892 N.Y. LEXIS 1315
New York Court of Appeals·Decided May 24, 1892·Published·Cited by 30 cases

Opinion

O’Brien, J.

The plaintiff in this case has recovered a judgment against the defendant for the value of his work and materials in altering and repairing a building, and the amount has been declared to be a lien, under the statute, against the premises on which the building stands. The form of the -action was such as is usual in the foreclosure of a mechanic’s lien. The complaint sets out a contract between the parties, ■and avers in substance that the plaintiff was prevented or ■excused from performance by reason of certain acts of the ■defendant. The referee has found that in August, 1888, the .plaintiff and defendant entered into a contract, in writing, whereby the plaintiff agreed to perform the labor and furnish materials in making certain repairs, additions and alterations in and upon a dwelling-house on the plaintiff’s premises, •according to plans and specifications, for the sum of $5,544.50. The plaintiff entered upon the performance of this contract, and actually continued to work under it until discharged by the defendant, but the work contemplated was never completed by the plaintiff. The most important question in the ■case is the proper construction to be given to this contract. By its terms it was to be performed on or before December 1, 1888. It was also provided that in case the architect, who was, by the provisions of the contract, to see to its perform *303 anee in all details and particulars, should certify to the defendant that the plaintiff had neglected, failed or refused to perform, that then the defendant might terminate the employment of the contractor and employ others to finish the work and furnish the materials, and in that case the contractor should not be entitled to any compensation for what he had done under the contract, except to the extent of any balance of the contract price that might remain after paying for the work and materials expended by the defendant after such termination ; and if the cost of completing the work after the owner had elected to terminate the contract should exceed the balance of the contract price remaining in his hands, then the contractor was bound to make good to the owner such excess.

On the 1th of January, 1889, the architect named in the contract delivered to the defendant a certificate in which was stated that the plaintiff had refused, neglected and failed to - comply with the terms of the contract, and that sufficient ground existed for terminating the employment of the plaintiff, and for employing other persons to finish the work contemplated by the contract and furnish the materials therefor. On the following day the defendant notified the plaintiff in writing that he had been furnished with such certificate, reciting its contents, and that he , elected to terminate plaintiff’s employment under the contract, and that he proposed to complete the work himself, or cause it to be completed. That the work contemplated by the contract was not completed when this notice was served is admitted. But the referee has found that the failure of the plaintiff to perform the contract within the time stipulated is attributable to the refusal of the defendant to pay the installments of the contract price when they became due. This proposition is deduced from another finding to the effect that prior to December 1, 1888, the date when the contract was to be performed, the plaintiff had so far made performance as to entitle him to be paid the first two installments of the contract price, amounting to $2,500, .and that he had been paid but $1,500.

That the architect unreasonably refused to make and deliver *304 to the plaintiff a certificate that the amount was due and payable under the contract, and that the defendant unreasonably refused to pay the same to the plaintiff, and that such wrongful action on the part of the architect and the defendant greatly impeded and delayed the plaintiff in the prosecution of the work. These findings, so far as they embrace and relate to matters of fact, were made by the referee upon evidence which was very conflicting and, therefore, conclusive upon this court, as it cannot fairly be urged that they are wholly unsupported by proof. But when and in what manner the contract price was payable depends upon the construction of the contract itself and presents a question of law. The contention of the defendant’s counsel is that as there was nó time specified in the contract for the payment of the price, it was not payable until the work was completed, or not at least until the certificate of the architect was furnished that it was due and payable. The contract was evidently written upon a printed blank form in use for that purpose, and neither the time when, nor the contingency upon which the several installments became due was distinctly expressed. But between the date of the contract in August and the time for its completion on December first the whole price was to be paid in four separate installments, two of one thousand dollars each, one of fifteen hundred dollars, one of seventeen hundred and forty-four dollars and fifty cents, and the balance of three hundred dollars to be paid on December first if the contract was fully completed on that day, “ provided that in each case the architect shall certify in writing that all the work upon the performance of which the payment is to become due has been done to his satisfaction.” It was further provided that in case any mechanic’s lien, chargeable to the contractor, was filed which bound the land of the owner then the defendant should have the right to retain from “ any payment then due or thereafter to become due ” an amount sufficient to discharge the same. It is quite evident that the parties intended that the installments should become due at different dates intermediate the date and the completion of the contract. To assent to the construction contended for by *305 the defendant would make the contract unreasonable and place the plaintiff entirely at the mercy of the defendant and the architect, and such a construction should be avoided when the general scope of the instrument and the terms used by the parties fairly permit a more just and reasonable interpretation. (Russell v. Allerton, 108 N. Y. 288.)

The referee held that by the payment clause the parties intended that each payment should become due when such proportion of the work was performed as the particular installment bore to the whole contract price. The $1,500 paid on the contract by the defendant seems to have been certified by the architect and paid upon this principle. Both parties understood that the plaintiff would, as the work progressed, require money to pay laborers and mechanics and to purchase materials and it was for this reason that the contract price was made payable in sums, as the progress of the work might demand on the one hand and justify on the other. The construction which the referee put upon this provision of the contract is just and reasonable and in accordance with what the parties themselves must have intended. ( White v. Hoyt, 73 N. Y. 505; Halpin v. Ins. Co. of N. A., 120 id. 73; Tallcott v. Arnold, 61 id. 616; Barlow v. Scott, 24 id. 40.)

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Wright v. . Reusens, 31 N.E. 215, 133 N.Y. 298, 45 N.Y. St. Rep. 183, 88 Sickels 298, 1892 N.Y. LEXIS 1315 (N.Y. 1892).

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