Zancanaro v. Cross

339 P.2d 746, 85 Ariz. 394, 1959 Ariz. LEXIS 225
CourtArizona Supreme Court
DecidedMay 27, 1959
Docket6444
StatusPublished
Cited by65 cases

This text of 339 P.2d 746 (Zancanaro v. Cross) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zancanaro v. Cross, 339 P.2d 746, 85 Ariz. 394, 1959 Ariz. LEXIS 225 (Ark. 1959).

Opinion

JOHNSON, Justice.

Emil Zancanaro, hereinafter referred to as defendant, appeals from a judgment awarded Norman Cross, dba Cross Plumbing & Heating Co., hereinafter referred to as plaintiff, as damages for breach of a written contract to install plumbing and fixtures in a tract of 50 homes to be built by defendant. Plaintiff cross-appeals on the amount of damages awarded it on the written contract, and also appeals the dis *397 nissal of its second cause of action on an oral contract to install outside water and sewer lines in the same tract. Defendant further appeals the dismissal of his counterclaim for damages allegedly caused by the negligence of plaintiff in performing his work.

Defendant planned to build a tract of 50 homes near Kingman, Arizona, with the Ware Construction Company as general contractor. Plaintiff submitted a bid to furnish fixtures and install plumbing in the 50 houses for $34,475. The bid form provided that it should become a binding contract upon acceptance, and contained a “Schedule of Conditions”, with provisions for attorney’s fees in case of suit. The contract price was made payable in certain percentages as the work progressed. The signatures of acceptance of defendant and ■of the general contractor were dated March 23, 1955.

Plaintiff and one Harlan Jost testified that at the time defendant accepted the contract he told them that he would like to build three houses a week at first, with & house a day thereafter. The homes were to be very much alike, so that most of the materials could be pre-cut in quantity.

Plaintiff was not aware that defendant’s agreement with the general contractor recited that he had contracted with the Mohave County Board of Supervisors to build the 50 houses within three years, and that his financing arrangements with the Valley National Bank were to be on a basis of “ten and ten”. The general contractor had agreed to any delay that might be caused by this requirement that each group of ten houses must be sold, thus substituting mortgagors, before the next group of ten could be financed.

Defendant’s contract with plaintiff made no reference to these arrangements, nor did it make any reference to his agreement with the general contractor.

Construction was commenced almost immediately, with plaintiff beginning his work in each house as it was ready. Defendant apparently felt there would be no delay in construction, for on March 26, 1955, he placed an order for windows for the entire 50 houses. Plaintiff had ordered the plumbing fixtures directly from the manufacturer in carload lots of 50; this had been the basis of his bid price and was much less costly than buying fixtures in smaller quantities from a wholesaler.

After the first houses had been started, however, defendant advised plaintiff that he might not build the entire 50 'houses and told him to cancel his orders for the fixtures in carload lots. Defendant then authorized plaintiff to order fixtures of lesser quality than had been specified, in order to lessen the increased cost of ordering in small quantities. The fixtures thus purchased still cost considerably more than those originally ordered.

*398 By the end of August, 1955, 25 houses were being completed, with no evidence .that the remaining 25 would be built. The forms had been stacked “as if for storage”, and defendant had made no arrangements for further financing. In fact, there was no new construction until February of 1956, when six more houses were started. Plaintiff apparently announced that he was through, as there were no more houses to work on. His men finished with the last one of the 25 houses on September 29, 1955.

On December 31, 1955, plaintiff filed suit for breach of the written contract, to recover anticipated profits for the entire 50 houses. He also sued on an oral contract with defendant to install the utilities between the main sewer and water lines and the houses. Defendant counterclaimed, claiming damages as the result of plaintiff’s allegedly faulty work in performance of both the written and oral contracts.

Defendant has made many assignments of error, all directed at the trial court’s findings of fact and conclusions of law. We will deal with those which are pertinent here.

The Written Contract

In the written contract plaintiff promised to install the plumbing and fixtures in each of the houses in defendant’s 50-home tract. Obviously he could not do so unless houses, "under construction were in existence. Thus the contract also contained a necessarily implied promise by defendant that those houses would be built. An implied promise arising out of the expressed provisions of the contract is as much a part of the contract as a written one, and is subject to the same penalties for breach. Gates v. Arizona Brewing Co., 54 Ariz. 266, 95 P.2d 49.

The contract contained no date by which the houses were to be under construction, nor did it contain a completion date. It merely provided that the construction by the owner or building' contractor “will proceed in the usual manner, without delay and as rapidly as similar buildings are constructed.” Where no time is specified within which a promise must be performed, a reasonable time is implied. United States v. Smith, 94 U.S. 214, 24 L. Ed. 115; see Shimmon v. Moore, 104 Cal.App.2d 554, 232 P.2d 22. Reasonable time is ordinarily a question of fact; here the defendant does not assign as error the trial court’s finding that a reasonable time for the construction of such a 50-house tract would be five to six months.

Defendant breached his implied promise to have the entire tract of 50 houses ready for the plumbing and fixtures within a reasonable time when he ceased construction at the end of six months, with only 25 homes completed. As there was no evidence showing that plaintiff was re *399 sponsible for this, the trial court’s finding of fact as to the reason for defendant’s breach is not important.

Defendant assigns as error the trial court’s finding that the contract provides that time is of the essence, contending that the provision did not apply to construction of the houses but only to the payment of money. But whether or not the provision that “Time is the essence of this contract” did apply to every promise in the contract is here immaterial. A “time is of the essence” provision operates only to give a minor breach as to timely performance the legal effect of a material breach; see Corbin on Contracts, § 713, Vol. 3, p. 797. Defendant’s breach in the instant case was a material one in and of itself. Plaintiff was not obligated to wait indefinitely until defendant decided to resume construction.

One of the remedies available at common law upon a material breach of contract is the right to cease performance and recover the profits which would have been made had • the entire contract been performed. This was the basis of plaintiff’s claim. However, defendant contends that plaintiff’s remedies for breach of contract were limited by a provision that

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Bluebook (online)
339 P.2d 746, 85 Ariz. 394, 1959 Ariz. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zancanaro-v-cross-ariz-1959.