Majority
Plaintiff (referred to hereinafter as “USI”) appeals from portions of a judgment made and entered after motions pursuant to section 631.8, Code of Civil Procedure, which (1) denied any recovery for breach of a written agreement to pay the full contract price for steel pipe and other items delivered by it to defendant Vadnais for specified public work and (2) determined that Vadnais and other defendants were not liable to plaintiff for the purchase price of 5,112 feet of pipe rejected by one codefendant (Woolley), who was also exonerated from any liability under a separate cause of action of the complaint as amended alleging tortious interference with the USI-Vadnais contract. Finally, the judgment awarded attorney’s fees in the sum of $6,500 to defendant Fidelity & Deposit of Maryland, surety on Vadnais’ bond (Gov. Code, § 4207).
Defendant Vadnais partnership and its partners have also appealed, from that portion of the judgment denying them recovery on their counterclaims by reason of their failure to produce any evidence in support thereof. It is apparent that this appeal is purely precautionary in nature and intended to protect their right to seek affirmative relief from plaintiff
The public work or improvement here involved consisted of a water distribution system servicing certain communities in Orange County by means of an underground pipeline approximately 6 miles long and of varying depth and direction, plans and specifications for which were drawn by defendant Woolley, a consulting engineer. Vadnais was the successful bidder on the project advertised by defendant West Orange County Water Board. Previously, plaintiff had submitted a written proposal to Vadnais to supply the pipe required for the project; on May 9, 1963, Vadnais accepted the proposal, being the contract herein. It called for the manufacture and delivery of approximately 31,473 feet of pipe having a value of $447,403; because of later developments, when suit was commenced there assertedly was an unpaid balance of $105,675. Under the agreement USI promised to commence delivery to the jobsite about 55 days later (July 3, 1963) at the rate of 5,000 feet per week, thus delivery should have been completed within seven weeks thereafter (August 21, 1963). Construction having been thus delayed, the trial court found that said delay was not the result of matters beyond plaintiff’s reasonable control; to the contrary, it concluded that the delay was directly and proximately caused by the wilful refusal of plaintiff, throughout the months of May, June and July, 1963 to manufacture said pipe and fittings in accordance with the plans and specifications for the project. It further determined that instead of so doing, plaintiff concentrated its efforts during that period on attempting to get defendant Woolley to alter the plans and specifications to enable plaintiff to manufacture the pipe and fittings more conveniently and cheaply. As a result, according to additional findings, Vadnais was prevented from commencing the project during the months of July and August 1963, to its substantial damage; plaintiff did not perform, substantially or otherwise, the terms and conditions of the contract by it to be performed and such failure of performance was not caused by any act of Vadnais. While still other findings were made covering the refusal to accept the additional 5,112 feet of pipe manufactured by plaintiff and further disposing • of other issues involving Vadnais and its codefendants, we first discuss'.the problems incident to the- question of substantial performance. • ■ •
The evdence reveals the following relevant facts: Before submitting its bid to Vadnais, USI had purchased a computer with which experimental use was made to determine the various sizes, shapes and pieces of pipe required to construct a given pipeline. Although it could have been programmed so to do, the USI computer was unable to compute certain “flanged fittings” required by the plans and specifications for the project. We briefly explain the use of such fittings—the pipeline comprised many sections; when it made a turn, either vertical or horizontal, the plans and specifications required an elbow flanged at both ends; the straight pieces of pipe adjoining the elbow also required flanging at both ends so that they could be bolted thereto. Because the USI computer was not programmed to compute these ‘ ‘ flanged fittings ’ ’ and because the pipeline was designed in such a way that the design could not be run through the computer, some of the flanges required by the plans and specifications had to be deleted. After the bids were opened and Vadnais ordered the pipe from USI, the latter endeavored to obtain the consent of defendant Woolley, the consulting engineer for defendant Water Board, to such deletions. Woolley refused. There then followed a series of exchanges, both oral and written, continuing from the latter part of May 1963 through August 30, some three months later. On July 26, 1963, Vadnais wrote USI regarding West Orange County Water Board Feeder No. 2 as follows: “We are seriously concerned about your complete failure to date to adhere to our agreed upon delivery schedule for pipe for the above referenced project. You will recall that, on May 24, 1963, you agreed to commence the delivery of pipe to the job' on July 22, 1963 and continue to deliver at the rate of 5,600 feet per week thereafter. As of this date ño pipe, has been, delivérecí to the job and wé .have no definite commitment from you as to when delivery will commence.
“We will of course hold you directly responsible for any and all losses which we sustain as a result of your failure to perform according to our subcontract agreement.
“We understand that now, after several weeks of discussions with the Consulting Engineer over the number and locations of pipe flanges, you are considering manufacturing said flanges yourself. We wish it distinctly understood that if this change in procedure involves any additional delay in meeting your delivery schedule, we will sustain additional losses for which we will hold you strictly accountable.
“We urgently request that you expedite the manufacture of the pipe required by our contract, and that you immediately advise us as to when we can expect delivery to commence. ’ ’
- On July 29, “in confirmation of our telephone conversation on July 26,” USI wrote to Yadnais, a copy of such communication being sent to Woolley, expressing plaintiff’s agreement to eliminate certain flanges specified by Woolley and stating, among other things, that production would start on July 29. The letter concluded as follows: “We trust that all parties are now in agreement and that those conditions set down by Mr. J. A. Woolley have been complied with. Please advise should you have any questions.” During the next 10 days USI’s calculations and shop drawings were submitted and resubmitted for correction to Woolley who finally approved them on August 7. The first pipe was shipped to the jobsite on August 30, 1963, although USI had originally contracted to start such shipments on July 3.
Recently the doctrine of substantial performance was once again set forth by our Supreme Court: “Where a person agrees to do a thing for another for a specified sum of money, to be paid on full performance, he is not entitled to any part of the sum until he has himself done the thing he agreed to do, unless full performance has been excused, prevented or
While plaintiff ITSI was in the strict sense a material-man, not a building contractor, it is not contended that the legal principles stated above are not likewise here controlling; nor is there any dispute that plaintiff had the burden of showing that it substantially performed. In an endeavor to meet that burden, and as part of its ease-in-ehief, plaintiff introduced the July 26 letter from Yadnais, quoted above, which was received as its Exhibit 8. Having been received without any limitation as to its purpose, it is contended by Yadnais that such communication constitutes sufficient evidence to support a finding as to the truth of the statements therein made. (Patrick J. Ruane, Inc. v. Parker, 185 Cal.App.2d 488 , 494 [ 8 Cal.Rptr. 379 ].) As indicated in said communication, Yadnais assertedly had already suffered a loss by maintaining equipment readily available for the commencement of operations as soon as the pipe was delivered; it was further therein indicated that additional damage would be sustained if the delay continued the job into the winter months. Admittedly delivery of all material was not completed until February of the following year (1964), and Yadnais property-points out that “standby costs and servicing are compensable in appropriate circumstances.” (Bowman v. Santa Clara County, 153 Cal.App.2d 707 , 714-715 [ 315 P.2d 67 ].) Although it counterclaimed for damages approximating $190,000,[1] Yadnais declined to put on any evidence thereof
1 Of such total sum, $100,000 represented additional expenses caused by plaintiff’s ‘1 sporadic ’ ’ deliveries, while the balance consisted of $89,894.23 due Vadnais but withheld by defendant Water Board following the filing of a stop notice claim. (Code Civ. Proc., § 1190.1.)
As a consequence of the tactics adopted below, we do not have the case usually presented by actions involving the doctrine of substantial performance. As Corbin points out, “Generally the plaintiff alleges full performance by himself . . . and his testimony tends to prove such full performance. The defendant denies the plaintiff’s allegations, asserts a substantial breach, and counterclaims for damages. Thus are raised the issues, full performance or not, substantial performance or not, and the amount of injury suffered. If it is found that each party has a right against the other and each has committed a wrong, the court must liquidate the claims in money, deduct the smaller and give judgment for the balance. If the damages payable for plaintiff’s breach exceed the unpaid balance of the price, the plaintiff gets judgment for nothing.” (3A Corbin, Contracts, § 709, pp. 337-338.) Here absent any evidence as to the amount of damages sustained by Yadnais, it became impossible to strike any balance, whether it favored plaintiff or Yadnais.
The question then is: Who has the burden of proving such damages?[2] The quotation from Corbin, supra (§ 709), is preceded by the following statement: “It would seem that each one must state his own claim, and must allege and prove the
Yadnais contends, however, that the issue of burden of proof becomes immaterial in the light of the finding that plaintiff performed neither substantially nor at all—‘ ‘ Plaintiff did not perform or substantially perform the terms and conditions of said written contract on its part to be performed.” (Finding No. 10.) Such finding overlooks evidentiary items to the contrary, as does the further finding (No. 9) which states, in pertinent part, that ‘1 there is no evidence that defendant Yadnais obtained any benefit from the delivery of said pipe in excess of the amount so paid.” Introduced as part of plaintiff’s ease (plaintiff’s Exhs. 10, 11) were customer ledger cards (with supporting invoices) and accounts receivable ledger cards (with supporting invoices) for the account of Yadnais; these two exhibits show deliveries to Yadnais of pipe and related materials having a total contract price of $447,403.69. Although Yadnais concedes that it was billed for the above amount, it admittedly paid only 76.4 percent thereof, retaining the balance ($105,675.18) as a set-off to reimburse itself for the damages it assertedly incurred as a result of plaintiff’s breaches of contract. In support of its declination to offer any evidence on the counterclaim, Yadnais now argues that plaintiff made no effort to prove that the value of the pipe and fittings thus delivered and received exceeded the damages set up in Yadnais ’ crossdemand. It appears, however, that the contract price was quoted as a unit price per foot for the various types of pipe described in the agreement. Too, through subsequent correspondence it was expressly agreed that the job would be billed by plaintiff on a unit price per foot basis, rather than as a lump sum; this is
The value of the pipe and other subject materials having thus been satisfactorily established, and delivery having been admitted by Vadnais, Corbin’s formula (§ 709, supra) would seem to have been complied with on plaintiff’s part. So too, it likewise appears, do the facts fit the rule of the Restatement (Rest., Contracts, § 357, pp. 623-624) which declares in pertinent part as follows: “Where the defendant fails or refuses to perform his contract and is justified therein by the plaintiff’s own breach of duty or non-performance of a condition, but the plaintiff has rendered a part performance under the contract that is a net benefit to the defendant, the plaintiff can get judgment . . . for the amount of such benefit in excess of the harm that he has caused to the defendant by his own breach . . .if (a) the plaintiff’s breach or nonperformance is not wilful and deliberate; or (b) the defendant, with knowledge that the plaintiff’s breach of duty or nonperformance of condition has occurred or will thereafter occur, assents to the rendition of the part performance, or accepts the benefit of it, or retains property received although its return in specie is still not unreasonably difficult or injurious. ” Additionally, the term “net benefit” is defined in the above section as follows: “The measure of the defendant’s benefit from the plaintiff’s past performance is the amount by which he has been enriched as the result of such performance unless the facts are those stated in Subsection (lb), in which ease it is the price fixed by the contract for such part performance, or, if no price is so fixed, a ratable proportion of the total contract price. ’ ’
Plaintiff having thus replied to the Vadnais inquiry that manufacture of the pipe be expedited and that “you immediately advise us when we can expect delivery to commence,” such deliveries were thereafter made, albeit belatedly, and accepted for a period of approximately five months; further
This brings us to matters further complicating the determination below. The trial court denied Yadnais recovery on its counterclaim, from which appeal is taken, because of failure of supporting proof, yet it found that Yadnais suffered “substantial” detriment from plaintiff’s omissions and deviations. Plaintiff objected to this latter finding (No. 8) and requested special findings pursuant to section 634, Code of Civil Procedure; thereunder “the [appellate] court shall not infer that the trial court found in favor of the prevailing party on such issue. ...” It is elementary that findings are required on all material issues raised by the pleadings and evidence unless they are waived, and if the court renders judgment without making findings on all material issues, the case must be reversed. Too, a corollary to this rule is that findings should be definite and certain (Sharove v. Middleman, 146 Cal.App.2d 199 , 201 [ 303 P.2d 900 ]), and “Where the findings are contradictory and irreconcilable with respect to matters which are material to the merits of the case, and the determination of them, one way or the other, is essential to the correctness of the judgment, the judgment cannot stand.” (Estate of Harvey, 164 Cal.App.2d 330 , 334 [ 330 P.2d 478 ].)
The finding that Yadnais was substantially damaged is entirely inconsistent with the judgment; certainly if this defendant had been “substantially” damaged in any way, it would have been entitled to judgment on its counterclaim. Also, in light of the mass of evidence produced, plaintiff was entitled to a more precise finding than “substantial” respecting the various issues at bar. For the reasons above set forth, we conclude that the portion of the judgment denying plaintiff recovery for pipe delivered to Yadnais was erroneously rendered.
There remains for determination the disposition of plaintiff’s appeal as it relates to the fourth, ninth and tenth causes of action directed against defendants other than Vadnais. The fourth sought recovery from both Woolley and the Water Board for work, labor and materials; the ninth was based on the stop notice filed with the Water Board, while the tenth asked damages for tortious interference by Woolley with the Vadmais-USI contract. The issues raised by the denial of the above demands seem so interwoven with those in the other causes of action involving Vadnais that a remand for retrial of the entire litigation might appear warranted except for the rule, to which we can find no exception, that such remand only applies where the judgment is adverse to a non-appealing party (Blache v. Blache, supra) ; here, of course, it is adverse to neither Woolley nor the Water Board and neither has appealed. Too, plaintiff’s treatment of this phase of the controversy is sketchy—at best.
We consider first the claim of tortious interference by Woolley (tenth cause of action). Plaintiff made the claim that Woolley was an independent contractor and hence not clothed with the governmental immunity given him by statutory law; Woolley, on the other hand, contended that he was an employee of the Water Board and exercising discretion in such capacity. By virtue of section 820.2, Government Code, “a public employee is not liable for an injury resulting from his act or omission where the act or omission was the result of the exercise of the discretion vested in him, whether or not such discretion be abused.” (See McCorkle v. City of Los Angeles, 70 Cal.2d 252 , 260-261 [ 74 Cal.Rptr. 389 , 449 P.2d 453 ].) In Burgdorf v. Funder, 246 Cal.App.2d 443 , 448 [ 54 Cal.Rptr. 805 ], the public policy reflected by the above statute was again given judicial approval: ‘1 Governmental immunity for liability for discretionary acts performed by public officers and employees in the exercise of their discretion has long been recognized in this state by judicial interpretation and is based on salutary public policy. ’ ’ While a ‘1 public employee” as defined in section 810.2 1 ‘does not include an independent contractor,” the trial court was reasonably war
Insofar as it involves defendants Wooley and West Coast Water Board, the judgment as it relates to the fourth, ninth, and tenth causes of action is affirmed; in all other respects the judgment is reversed for retrial in accordance with the views herein expressed. Without cost to any party.
Fourt, Acting P. J., and Thompson, J., concurred.
A petition for a rehearing was denied March 25, 1969, and the petition of defendants and appellants for a hearing by the Supreme Court was denied May 8, 1969.
Cases cited
- Greening v. General Air-Conditioning Corp. 233 Cal.App.2d 545 at 550 p. 524
- Lowy v. United Pacific Insurance 67 Cal.2d 87 at 92, at 92-93 p. 526, p. 531
- Patrick J. Ruane, Inc. v. Parker 185 Cal.App.2d 488 at 494 p. 526, p. 530
- Bowman v. Santa Clara County 153 Cal.App.2d 707 at 714-715 p. 526
- Union Liquors, Inc. v. Finkel & Lasarow, Inc. 44 Cal.App.2d 706 at 710 p. 529
- Johnson v. Besoyan 85 Cal.App.2d 389 at 393 p. 529
- Security-First National Bank v. Spring Street Properties, Inc. 20 Cal.App.2d 618 at 626 p. 530
- Oliver v. Campbell 43 Cal.2d 298 at 302 p. 531
- Sharove v. Middleman 146 Cal.App.2d 199 at 201 p. 532
- Harvey v. Harvey 164 Cal.App.2d 330 at 334 p. 532
- Sun Oil Co. of California v. Union Drilling & Petroleum Co. 208 Cal. 114 at 119 p. 533
- Blache v. Blache 37 Cal.2d 531 at 538 p. 533
- McCorkle v. City of Los Angeles 70 Cal.2d 252 at 260-261 p. 534
- Burgdorf v. Funder 246 Cal.App.2d 443 at 448 p. 534
- Eistrat v. Irving Lumber & Moulding, Inc. 210 Cal.App.2d 382 at 390-391 p. 535