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NORTHWESTERN MARBLE & TILE COMPANY v. OLOF SWENSON

Minnesota Supreme Court1918-02-15No. No. 20,739
139 Minn. 365

Summary

Holding. The trial court properly dismissed the case because, once the existence of an express contract was admitted, the company could recover only by proving full performance under that contract's terms, which it failed to do. The order granting a new trial is reversed.

A marble and tile company sued to recover payment for labor and materials provided to a homeowner. The company's complaint alleged a quantum meruit claim for reasonable value of work performed. The defendant admitted receiving the work but claimed it was done under a written contract that the company failed to complete. The company acknowledged the written contract in its reply but then proceeded to trial by presenting only evidence of the work performed and its reasonable value, without introducing the contract itself or proving its own performance under the contract's terms.

The trial court repeatedly instructed the company's attorney that recovery required proof of contract performance, not merely proof of work done and its value. When the company failed to present such proof, the trial court dismissed the case. The company then received a new trial, which prompted the defendant to appeal.

The court held that although pleading rules allow a party alleging quantum meruit to prove either an informal arrangement or a fully performed express contract, once an express contract is admitted or alleged to exist, the party cannot ignore it. The company was bound by its own admission of the contract and could recover only by proving full performance of its own contractual obligations. Because the company offered no such proof at trial, the dismissal was proper and granting a new trial was an error.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a party may ignore an admitted express contract and recover on a quantum meruit theory based on reasonable value of work performed
  • What proof is required when a party both admits an express contract exists and claims it performed fully under that contract
  • The relationship between pleading flexibility in quantum meruit claims and substantive contract obligations

Procedural posture

The trial court dismissed the company's action, subsequently granted a new trial, and the defendant appealed from the order granting the new trial.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Hallam, J.

Plaintiff, in its complaint, alleged a cause of action to recover the reasonable value of labor and material furnished to defendant, at his instance and request. Defendant, in his answer, admitted that plaintiff furnished certain labor and material to defendant, but alleged that the same were furnished under a written contract which the plaintiff failed to fully perform. Plaintiff replied, admitting that the labor and material were furnished under a written contract and alleged the contract was fully performed.

When the case came on for trial plaintiff ignored the admitted contract and offered proof of furnishing the work and material and of the reasonable value thereof. The trial court repeatedly admonished plaintiff’s counsel that, since the work was done under an ■ agreed contract, it could recover only on proof of its performance, but counsel declined to offer the contract in evidence or to prove that it had been performed. At the conclusion of plaintiff’s testimony the court dismissed the case, but later granted a new trial. Defendant appeals from this order.

There was no difficulty with the pleadings. Under the allegations of quantum meruit in the complaint, plaintiff (1) might prove work and material furnished at the instance of defendant without express contract, and recover the reasonable value, or (2) it might prove that there was an express contract and that it had fully performed on its part, and recover the amount due. Larson v. Schmaus, 31 Minn. 410, 18 N. W. 273. While there is some confusion in the-early cases in this state as to the second proposition, any doubt that ever existed is well cleared up in Meyer v. Saterbak, 128 Minn. 304, 150 N. W. 901. This is the prevailing rule. 40 Cyc. 2835. Scott v. Congdon, 106 Ind. 268, 6 N. E. 625; Atkins v. County of Barnstable, 97 Mass. 428; Concord Apartment House Co. v. O’Brien, 228 Ill. 360, 367, 81 N. E. 1038. Even the common law system of procedure indulged this liberality. 1 Chitty, Pl. (16th Am. ed.) *357-359; Gordon v. Martin, Fitzg. 302; Alcorn v. Westbrook, Wilson, 115; Felton v. Dickinson, 10 Mass. 287; Frazer v. Gregg, 20 Ill. 300. Over 100 years ago, Justice Story recognized this doctrine as “incontrovertibly settled.” Bank of Columbia v. Patterson, 7 Cranch, 299, 3 L. ed. 351. The amount of recovery in such eases is the contract price. Kruta v. Lough, 131 Minn. 13, 154 N. W. 514; Theodore Wetmore & Co. v. Thurman, 121 Minn. 352, 356, 141 N. W. 481; Dermott v. Jones, 2 Wall. 1, 17 L. ed. 762; Hubbard v. Investment Co. 119 U. S. 696, 701, 7 Sup. Ct. 353, 30 L. ed. 548; Williams v. Sherman, 7 Wend. 109; Fuchs v. Standard Thermometer Co. 178 Mich. 37, 144 N. W. 484. It follows that there was no departure in the reply, for the reply was simply a particular allegatioh or admission of certain facts which plaintiff could have proven under the general allegation of the complaint.

But these rules, calculated to simplify pleading and eliminate technicality in procedures, were never intended to abrogate contract obligations. It is now, as always, the law that’ where parties enter into an express contract they are bound by its terms. Neither party can, as plaintiff claims, “lay it aside” and proceed as though no contract had ever been made. The contract determines the rights of the- parties, and if the plaintiff either alleges or admits the existence of an express contract it must show a right of recovery consistent with its terms. This is part of its cause of action. This is true whether it.relies on full performance by itself or on a breach of the other party, or on any other condition that may give it a right of recovery. Hammond v. Dunbar, 41 Mass. 172, 180. Had it not appeared in this case that there was an express contract, plaintiff’s proof that it furnished work and material of a given value to defendant at his instance and request, would have made out a prima facie case, but since -the existence of an express contract did appear by the allegation of the defendant and the admission of plaintiff, and since, in its pleadings, plaintiff relied on full performance, it could only recover upon showing that the contract was fully performed. Plaintiff did not offier to do so. The action was properly dismissed- and it was error to grant a new trial.

Order reversed.

Holt, J., took no part.