This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
A general contractor entered into a written agreement with homeowners to construct a residence for $258,450.35. The contract stipulated that any modifications requiring extra costs must be in writing. During construction, the contractor claimed the homeowners requested changes that increased costs, but no written change orders were executed. After moving in, the homeowners identified construction defects and disputed the contractor's claims for additional costs. The contractor fixed some issues but not all, leading to a dispute over payment and damages (paras 4-6).
Procedural History
- District Court, July 1997: The trial court ruled that oral modifications to written contracts must be proven by clear and convincing evidence. It awarded the contractor $5,346.67 for stipulated extras but offset this against $9,395 in damages for substandard work, resulting in a net judgment of $4,047.33 in favor of the homeowners (paras 7, 27).
Parties' Submissions
- Contractor: Argued that oral modifications to the contract were valid and proven by a preponderance of the evidence. Claimed entitlement to additional compensation for changes under quantum meruit and challenged the sufficiency of evidence supporting the homeowners' damages. Also argued that the homeowners failed to mitigate damages and that their cross-appeal was untimely (paras 1-2, 8, 13-19, 20).
- Homeowners: Denied requesting or authorizing the additional costs claimed by the contractor. Asserted that the contractor's work was substandard and sought damages for repairs. Contended that their cross-appeal was timely under the rules of procedure (paras 6-7, 20-24).
Legal Issues
- Whether oral modifications to a written contract requiring written changes must be proven by clear and convincing evidence (para 1).
- Whether the contractor was entitled to recover additional costs under quantum meruit (para 19).
- Whether the homeowners failed to mitigate their damages (para 18).
- Whether the homeowners' cross-appeal was timely filed (para 20).
Disposition
- Oral modifications to the written contract must be proven by clear and convincing evidence (para 1).
- The contractor was not entitled to recover additional costs under quantum meruit (para 19).
- The homeowners did not fail to mitigate their damages (para 18).
- The homeowners' cross-appeal was timely filed (para 24).
- The trial court's judgment was affirmed (para 27).
Reasons
Per Wechsler J. (Pickard CJ. and Apodaca J. concurring):
Oral Modifications: The court held that oral modifications to a written contract requiring written changes must be proven by clear and convincing evidence. This standard ensures the sanctity of written agreements and avoids ambiguity in contractual disputes. The contractor failed to meet this burden (paras 8-12).
Quantum Meruit: The court found that the contractor unilaterally made changes without prior approval from the homeowners. Recovery under quantum meruit was denied because the homeowners did not request or authorize the changes, and restitution would unfairly deprive them of their right to choose (para 19).
Mitigation of Damages: The court rejected the contractor's argument that the homeowners failed to mitigate damages. Evidence showed the contractor was aware of the defects and refused to address them, and there was no proof that the cost of repairs increased due to delay (para 18).
Timeliness of Cross-Appeal: The court ruled that the homeowners' cross-appeal was timely under Rule 12-308, which allows three additional days for filing when service is made by mail. The notice was filed within this extended period (paras 20-24).
Sufficiency of Evidence: The court upheld the trial court's findings, noting that the evidence supported the homeowners' claims of substandard work and the rejection of the contractor's claims for additional costs. The trial court was entitled to resolve conflicting testimony in favor of the homeowners (paras 14-17, 26).