Stocking v. Fouts
Stocking v. Fouts
Opinion of the Court
The plaintiffs seek recovery upon a bond executed by the defendant Fouts, as principal, and the defendant Guardian Casualty & Guaranty Company, as surety, to secure the faithful performance of a building contract entered into between the plaintiffs and the defendant Fouts. Trial in the superior court for Thurston county sitting without a jury, resulted in findings and judgment in favor of the plaintiffs and against the defendants for the sum of $5,917.40, rendered upon the theory that the plaintiffs had been compelled to pay large sums in excess of the contract price in
In September, 1914, respondents and appellant Fouts entered into a contract by which Fouts agreed to furnish the material and construct for respondents a two-story reinforced concrete building in Olympia, in accordance with plans and specifications prepared by W. B. White, an architect, the work to be done under his direction and to his satisfaction as supervising architect. Fouts was to complete the building for an agreed lump sum of $16,000, except that he was to receive additional compensation for any changes in the plans and specifications which would increase the cost of the building to him. He agreed to execute a bond in the sum of $8,000 with a responsible surety company as surety to guarantee the faithful performance of the contract. The contract and specifications, made part thereof, contained, among other stipulations, the following:
“The party of the second part (Fouts) further agrees to assume and pay all bills incurred by him for labor and material in the execution of this work.
“Should the owners desire to make changes or alterations in the 'building during the construction, they shall have the right to do so, but such changes must be ordered in writing by the architect and the price agreed upon at the time they are ordered, which agreed price is also to be placed in writing, and no extras will be allowed nor paid for unless in pursuance of written orders. Should it be found, when the extra work is ordered, that the owners and contractor cannot agree upon a just price for the same, then the matter shall be submitted to the architect, who shall give a written statement as to a just consideration, either party having the right to appeal from this decision. ...
“Should the owner-or contractor desire, either may appeal from any and all decisions of the architect herein named to a board of arbitration, consisting of one person chosen by each*263 principal and an umpire selected by the two so chosen, and the decision of such a board shall be final and binding on all parties concerned.”
The contract having been signed by the parties, immediately thereafter, in compliance with its terms, a bond in the sum of $8,000 was executed by Fouts, as principal, and appellant guaranty company, as surety, guaranteeing the faithful performance of the contract. This bond is the one here sued upon and contains, among other stipulations, the following:
“. . . no change shall be made in the plans and specifications, terms, covenants and conditions of such contract which shall increase the amount to be paid the principal more than twenty per centum of the penalty of this instrument. 99
The plans and specifications originally contemplated the construction of a storeroom and a banking room on the lower floor, and included a vault in the banking room. They also contemplated putting in fireproof partitions, known as Jester partitions, between the rooms on both floors. While the construction of the foundation and the outer walls of the building was progressing, but before any work was done on the interior portions thereof, respondents decided to have the banking room partitioned into two storerooms, omit the vault, and have the partitions between the rooms on both floors constructed of wood studding and lath with ordinary plastering thereon, instead of the Jester partitions as called for in' the original plans and specifications. Some other minor changes were also decided upon by respondents, but we think they are not of sufficient importance to require notice here. Revised plans and specifications were prepared accordingly by the architect and delivered to Fouts, who was directed' to proceed with the construction of the interior of the building in accordance therewith. Fouts and respondents were unable to agree upon the additional compensation he should receive for the'making of these changes, so White, as
“That thereafter the defendant Robert M. Fouts, doing business as the Fouts Construction Company, placed said extras in said building; that the said defendant Fouts never appealed from said architect’s statement. That a long time after said building was completed and accepted, the defendant Robert M. Fouts, doing business as the Fouts Construction Company, proposed some sort of arbitration of the matters relating to said extras, but such proposal was not seasonably made nor within a reasonable time after the furnishing of the written statement as to the just consideration by the architect and not in accordance with the provisions of the contract.”
We think this finding is fully justified by the evidence. There is no dispute as to the sums which respondents were compelled to pay in order to protect their property from liens of materialmen and laborers which were incurred by Fouts in the performance of the contract in excess of the contract price, including extra compensation allowed by the architect because of the changes; nor could it be seriously contended that respondents were not damaged in the amount for which judgment was rendered in their favor against appellants because of the failure of Fouts to faithfully perform his contract to assume and pay all bills incurred by him for labor and material.
Assuming for the present that Fouts was entitled to no more than the $667.25 allowed him by the architect as his compensation because of the changes, it becomes plain that the increased cost of the building, by reason of the changes, falls far short of twenty per cent of the $8,000 named as the penal sum of the bond. It seems quite clear to us that not only were the changes well within the twenty per cent limit agreed upon, but that they were not such changes as resulted
It is contended in behalf of both appellants that respondents have no right to maintain this action because they have not sought to have submitted to arbitration the question of the matter of extra compensation Fouts is entitled to for the work and materials furnished by him as a result of the changes in the interior plans and specifications. The argument seems to be that, because of the failure of Fouts and
The judgment is affirmed.
Ellis, C. J., Holcomb, Fullerton, and Mount, JJ., concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.