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CMC Enterprise, Inc. v. Ken Lowe Management Co.
525 S.E.2d 295
W. Va.
1999
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*1 525 S.E.2d 295 INC., ENTERPRISE, Plaintiff

Below, Appellee,

KEN LOWE MANAGEMENT

COMPANY, Defendant

Below, Appellant.

No. 26431. Appeals of

Supreme Court of Virginia. 3, 1999.

Submitted Nov.

Decided 1999. Dec. Opinion

Dissenting of Justice

Maynard Dec.

I. FACTS parcel Appellant The owned a of real es- County, Virginia. tate in Grant West On 29, 1996, February Appellant entered into a contract with the for the remodeling Security of the Social Adminis- lump tration for sum amount of $80,195.3 to Pursuant the terms of the con- tract, perform was to all work “according specifications to outlined in con- Security tract documentation for Social Ad- 13, Building[ ministration November ][d]ated 1995[,]4 meet or exceed all [a]nd requirements tions and in as U.S. Government lease No. 03B 60062.”5 GS Snowden, Esquire, Martinsburg, R. Susan performed the work was to be in Virginia, Attorney Appellant. for West layout accordance with the ... shown “[f]loor 27, 1996[,]” February on dated McDaniel, Petersburg, Esquire, Duke A. SK-2/96 which was attached to the contract. There Virginia, Attorney Appellee. for requirements were no in contract orders had to be PER CURIAM: writing. upon This ease is before the Court Appellee’s In the trial numbered exhibit Manage- appeal of the 18, supplemental agree- the lease and lease ment from the November order Appellant ment from GSA to the was not County, of the Circuit of Grant where- Court May until Appellant received 1996. trial,1 following a bench was Appellee maintained the lease re- Appellee, in favor of the En- entered signed apparently to was not or com- ferred terprises, in the amount of project pleted until after work on the was July Appellant interest from 1996. The Thus, completed. Appellee had no 1) by argues that the lower court erred: agree- knowledge or benefit of the lease failing apply and construe the contract ment.6 Appellee, the maker 2) 4,1996, tract; April Appellee began work- allowing the recover On project ing budding in accordance with the for additional work done on the on 3) orders; February absence of SK-2/96 layout.7 Francis making findings of fact that were inaccurate Also on McGafferty Adminis- adopt material facts intro- of the General Services 4) (“GSA”) trial;2 Lowe, the allowing inter- tration wrote to Ken duced president Appellant company. In that est on the credit due to the letter, judgment. McGafferty “[u]pon prior granting the reduction Mr. stated designated original 4. dated November 1. While the entire record was The contract documentation 13, 1995, was a or offer between the purposes appeal, solicitation of this Appellant and General Services Administration. transcript proceedings of the bench trial was part of the record. yet entered into a lease 5. The had not Security for the with the Social Administration assignments 2. are The second and third error space remodeled at the time the contract largely Consequently, the same. we address made. these issues as one. superseded agreement so- 6. actual lease licitation or offer dated November 1995. obligations had no contractual 3. The with the General Services Administration June 7. The work was finished on or about ("GSA”) Security or the Social Administration. February reading [dated nature to the contract were necessary, all work was to be done I noticed that order executed all 1996] space layout with the attached signed accordance parties who construction etc.). walls, restrooms, I would (existing contract was obtained. Mr. Dove further proceeding in this manner you caution *3 that is antici- testified when additional work you copy a of our final until I furnish with pated, work authorizations modifica- and/or letter, floorplan.” According to the the floor in writing. tions should be Mr. Dove also plan remodeling that was to be used the by performed Appel- that work the testified April was to “no later than be lee was not in conformance with the con- According 1996.” the facsimile information many tract.8 Mr. Dove stated top April letter found recovery Appellee sought of the items the for McGafferty Appellant, Mr. to the the from original should have been in the included Appellee letter was not forwarded to the specifications lump contract for the sum 28,1996. August until contrast, In Appellee amount. the offered plans The new floor with new evidence that the additional were re- items prepared by Bentley parol tions that had been Jim a the coverable because modification to Security contract, of the Social Administration and agreed upon by parties, the had April dated were received the end, Appellee occurred. To that the offered April after 1996. The new floor Bachtel, testimony regis- the of Jeanine S. a materially plans specification were dif- engineer tered for construction and renova- plans. The ferent the old evidence was Frostburg University, tion at who State testi- plans uncontradicted that when the new floor customary industry fied that it was in the received, were contacted the the to receive written if orders the con- Appellant. Subsequently, Appellee’s provide tract did not for the same. Junkins, agents, Wardney and Dick Cosner The circuit court found that “CMC built separate met with on two occa- Ken Lowe (accord- building according plans to GSA meetings, During sions. the two Ken Lowe contract^,] ing building to [t]hat verbally Appellee’s agents to instructed specifications_” now meets GSA Fur- proceed plans speci- under the new floor ther, permit the lower court found that “to court found that fications. trial “Ward- Defendant, Ken Lowe Com- GSA, ney Cosner was told that Ken Lowe $40,000 $160,000 pany, to receive to worth of Management, Security or Social would be $80,195, plus renovations for additional cost responsible difference in for the the new $3,800 options aof rear room of and a roof plan plan].” from the old There [floor $3,500, option unjust would be enrich- twenty-eight phone a total also were mes- ment.” sages from the to the facsimiles GSA and the Social Securi- and/or ty Administration. II. ISSUES 1,1996, facsimile, July Appellee, On via A. ten-page sent to the a document totaling which included an invoice for The first issue is whether the lower work additional not covered by failing court erred the con construe contract. Appellee, tract its drafter. The Appellant argues testimony that because the contract introduced the Dove, parties registered professional engi- lump Edward a entered into between the was a Associates, “in neer Dove & who testi- sum error industry permission fied the standard of the to obtain from the owner changes project additional prior modifications or and real estate to com- McCafferty, contracting Appellant, proves 8. Francis officer with that the meet GSA, Appel- specifications corroborated the GSA and that GSAwas due a cred- performed lee's work was not in accordance with it of as were to be included there items According price the contract. letter which were not McCafferty dated from Mr. to the installed. mencing completely [sic] additional work was done its curred. The contract is silent as and, such, Manage- any requirement as own risk that a Company obligation pay ment had no for terms of the contract need in writing. to be specifically items which it did not authorize.” previously This Court has held that contrast, Appellee argues “ may ‘a written contract be modified or its contract between the did not contain subsequent terms altered valid oral provision written orders. Con- agreement, may prop and this be shown sequently, correctly the circuit court decided Syllabus er point part,] case....’ [in modification to Kessler, Jones v. 98 W.Va. 126 S.E. 344 tract occurred. (1925).” Syl. part, Pt. W.L. Thaxton following We use the standard of Constr. Co. O.K. Constr. 170 W.Va.. *4 resolving in assigned review the error: 657, (1982); Syl. 295 S.E.2d 822 2 see Pt. of when a trial court’s answers rest not on Pools, Knapp, State ex rel. Coral Inc. v. 147 plain meaning the but on dif- [of contract] 704, (1963) (“A W.Va. 131 S.E.2d 81 fact, findings by ferential a trier of derived may supplemented by be altered or parties’ from extrinsic evidence as to the parol made.”); a valid subsequently regard intent an uncertain contrac- Distrib., Lodge see also John W. Co. v. Texa provision, appellate proceeds tual review co, 603, 606, 157, 161 W.Va. 245 S.E.2d ‘clearly under the erroneous’ standard. (1978); Searls, 159 Wilkinson v. 155 W.Va. pertains The same standard whenever 735, (1971); 184 S.E.2d 741 Stein trial court decides factual matters that are Jones, brecher v. 151 W.Va. 153 ascertaining parties’ rights essential to (1967) S.E.2d 301 . particular (though depen- situation case, In the instant the court deter meaning dent on the of the contractual parol se). mined that a modification cases, had occurred per types terms In these of and that the was entitled to recover ordinarily issues are fact-dominated rather upon additional and, extent, monies based said modifica than law-dominated to that required tion which additional work not con trial court’s resolution of them is entitled templated by contract. As we to deference. indicated W.L. Thaxton Const. Police, Lodge Fraternal Order No. 69 v. of parol determination of whether there was a Fairmont, City 196 W.Va. 468 of modification to contract is left to the trier (1996). S.E.2d 715 fact, case, of this lower court. at Id. support argument, Ap of its (“It 660, 295 jury S.E.2d at 825 was for the pellant upon relies the well-established con signed decide if the written and contract had principles unambigu tractual that clear and so.”). orally they modified and did been We applied ous contractual should be finding will not disturb such a of fact unless Syl. and not construed. Pt. Fraternal See clearly it is erroneous. See Fraternal Order Police, Order 196 W.Va. at 468 S.E.2d of Police, at 196 W.Va. at 468 S.E.2d of (“ right province at ‘It is not the or of a 715. We conclude that the circuit court’s alter, pervert destroy court to the clear findings clearly were not erroneous. meaning parties and intent of the as ex pressed unambiguous language in their B. written contract or to make a new or differ them.’”). Appellant’s ent contract for The The next issue is whether the circuit upon principles findings reliance in making these for the resolu court erred of fact that case, however, completely ignores tion of adopt were inaccurate and mate the fact that the lower court Appellant was not asked to rial facts introduced at trial. The interpret unambiguous argues a clear and contractu find that several the circuit court’s provision. contrary, ings contrary al To the main issue of fact are to the evidence instance, simply Appel before the lower court was whether introduced trial. For suppórted finding finding the evidence lant maintain that the circuit court’s building modification to the contract oc- “now meets GSA record, findings factual re- we find that the contradictory to the evidence intro- is tions” thoughtful trial court’s review of the According to the flect the at trial. duced specifications. presented clearly erro- meet GSA and are did not Likewise, specifically found the lower court neous. was led to believe would be Appellant or the GSA either the G. in the new responsible the difference lower court The last issue is whether Appellant main- plan from the old. the amount erred its calculation of introduced at trial the evidence tains that enriched,” Appellant “unjustly which the authorized ad- Appellant never was that by failing into the calculation a to factor security system ditional work other than Appel prejudgment interest in the credit Appellant Finally, the asserts and overtime. Appellant lant’s favor. The maintains that found that the circuit court first requested prejudgment it had inter because had “a course and the counterclaim, it was error for the est its dealing for written between circuit court to fail to award the expenditures of and additional orders prejudgment credit the interest approved writing which Ken funds to be granted Appellant’s circuit court favor. Company approve[,]” asserts the is not *5 erroneously that the then concluded prejudgment entitled to interest because to recover for items which were

was entitled circuit court did not award the by express without the done judgment, merely gave the but Appellant.9 authority permission of the or gross verdict. credit Thus, finding Appellant argues that the unjust by the lower court of enrichment is generally involving review decisions We contrary Appel- of case. The to the facts prejudgment under an abuse of dis- interest lee, however, argues findings that the of fact Kirk, cretion v. 195 standard. See Gribben by should not be re- (1995). made the lower court 466 S.E.2d 159 W.Va. plainly wrong. appeal on (1997) versed unless Virginia pro- § Code 56-6-31 West vides, pertinent part, “[ejxcept where stated, findings previously factual made As law, judg- provided by every it is otherwise by given great trial are deference this payment money ment or decree for the of they unless Court and will not be overturned by any entered court of this State shall bear clearly Fraternal Order are erroneous. See ” from the date thereof .... Id. interest Police, 196 W.Va. at 468 S.E.2d (1997), Virginia § Code 56-6-27 howev- case, 715. In the fact that the the instant er, general authority awarding is trial court found that certain modifications prejudgment interest in a contract action. pursuant had been made to written Clark, See First Nat’l Bank of Bluefield orders, negate does not the fact 447 560 W.Va. S.E.2d agreed parties. modification was (1994). provision provides That finding regarding the trial court’s jury, specifications, that the met it action founded on con- GSA tract, may principal certainly purview within the trial court’s allow interest on the due, thereof, part what credible and and all cases decide evidence was they aggregate principal what evidence was not credible. That factual shall find the trial, finding apparently the trial and interest due at the time of the reflects that credits, allowing payments Appellant’s proper court did not find evidence after all set-offs; judgment en- credible on this issue. From a review of the and shall be security system finding actual made the circuit court to include overtime and 'which dealing par- was: indicated a course of between the throughout project, ties for written orders and additional That two the course on occasions, May approved expenditures of funds to be in writ- Enterprise Inc. to Ken ing, Management Company which Management Company written confir- approve. requested by CMC mation of additional work likely their affairs in business most conduct interest aggregate with for such tered manner, i.e., relatively verbal informal the verdict. the date of modifications, etc. agreements, verbal § 56-6-27. W. Va.Code Therefore, oral the consideration of case, from the it is evident In the instant parties is involving noncommercial cases Appellant was court’s order circuit way to find the truth. often the best any judgment on its counter- not awarded hand, entities, on the other Commercial Rather, evi- recognizing that claim.10 higher so- expected to have a level of are Appellant’s contention supported the dence conducting their business. phistication $9,027 credit, entitled to that it was presume able to Courts should be correctly that credit deducted circuit court projects in- parties contract on commercial on the balance interest was calculated before money, par- volving sums of these substantial Appellee. due everything writing. is ties ensure all, just good This After this is business. III. CONCLUSION the con- presumption allows courts avoid foregoing, Based on credibility assessments flicting County, West of Grant the Circuit Court necessary in context. the above-mentioned hereby Virginia, is affirmed. Instead, looking can decided the issue be Affirmed. applicable at the contract. sitting by Judge GARY JOHNSON ease, unilateral modifications were

temporary assignment. a contract that resulted the addi- made to appellee’s the cost of the tion of participate. did not SCOTT Justice dispute no that no written work. There is Justice, MAYNARD, dissenting: concerning executed orders were *6 Therefore, the trial 1999) these modifications. (Filed Dec. con- looked at the written court should have I I because do believe dissent Instead, judged accordingly. tract and Enterprises, should be appellee, CMC enti- involving sophisticated commercial ease for additional work done allowed to recover grandma-itinerant treated like a ties was remodeling project absent written appellee blacktop company case wherein the appellant, approved change orders testify verbal permitted to about Company. This is not changes made the contract. sophisticated busi- concerns two This case business, It allows only it is law. bad bad , govern which con- The rules ness entities. make unilateral modifications party one apply here. For transactions do not sumer a contract. the written terms of violation of with an example, grandma contracts conclusion, majority’s decision is have her blacktop company to itinerant Management Company. unfair to Ken dispute driveway paved, and there is Also, message to contrac- a terrible it sends agreement, of the cerning the terms Inc. I would Enterprises, tors like CMC will be con- subsequent agreement oral of a and enforce the below reverse determining proper resolution sidered According- as written. of the contract terms usually con- the matter. Such evidence ly, I dissent. parties, sists party is forced to choose which trier of fact is Although the admission

the most believable. perfect way to not a parol evidence is provisions of a the truth when the

discern issue, recognition of the it is a

contract are at regularly engage who do not

fact that credit, terclaim, plus inter- seeking as well as in dam- Appellant was 10. misrepresentation est and costs. ages in its coun- fraud and

Case Details

Case Name: CMC Enterprise, Inc. v. Ken Lowe Management Co.
Court Name: West Virginia Supreme Court
Date Published: Dec 16, 1999
Citation: 525 S.E.2d 295
Docket Number: 26431
Court Abbreviation: W. Va.
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