Ingram v. Square Foot Const. Inc., 517

• Decision Date: 15 June 1993
• Docket Number: No. 517,1992,517
• Citation: 633 A.2d 370
• Court: United States State Supreme Court of Delaware
• Parties: Richard Marvin INGRAM and Patricia E. Ingram and Shore Building Supply Inc., a Delaware Corporation, Defendants Below, Appellants, v. SQUARE FOOT CONSTRUCTION, INC., Plaintiff Below, Appellee. . Submitted:

Page 370

633 A.2d 370

Richard Marvin INGRAM and Patricia E. Ingram and Shore Building Supply Inc., a Delaware Corporation Defendants Below, Appellants, v. SQUARE FOOT CONSTRUCTION, INC., Plaintiff Below, Appellee.

No. 517, 1992.

Supreme Court of Delaware.

Submitted: June 15, 1993.

Decided: Sept. 28, 1993.

Court Below: Superior Court for the State of Delaware in and for Sussex County, C.A. No. 90L-08-015.

Superior Court, Sussex County.

AFFIRMED.

Before VEASEY, C.J., and MOORE and WALSH, JJ.

ORDER

VEASEY, Chief Justice.

This 28th day of September 1993, the Court having considered this matter on the briefs, it appears that:

(1) Defendants-appellants, Richard M. Ingram, Patricia E. Ingram, and Shore Building Supply, Inc. (hereinafter collectively referred to as "Ingram"), appeal from a judgment of the Superior Court enforcing a mechanics' lien in favor of plaintiff-appellee, Square Foot Construction, Inc. ("Square Foot"), in the amount of $57,377 with interest at 12% per annum.

(2) In 1965 Ingram purchased commercial property in Lewes, Delaware. The property was subsequently developed into retail space and a lumber yard consisting of several buildings, some of which are interconnected. Various businesses have leased space in the complex over the years. In the fall of 1989 Tom Brady ("Brady") contacted Ingram to inquire about leasing space for a flea market. Negotiations commenced and a written lease agreement was signed on February 26, 1990. Pursuant to the lease, Ingram agreed, inter alia, to (1) install lighting, bathroom facilities, and required entrances and exits; (2) comply with any requirements of the State Fire Marshal; (3) maintain the heating, air conditioning, and septic systems; and (4) maintain the exterior of the buildings. The lease further provides that all other improvements are the tenant's responsibility. Although interior renovations other than those provided by Ingram were necessary before Brady could open for business, Brady was unable to finance the additional construction.

(3) Despite the terms of the prospective lease, Ingram agreed to pay for the interior renovations to Building 4, the first building Brady was to occupy. Prior to signing the lease with Brady, Ingram entered into an oral agreement with Donald Lillquist ("Lillquist"), the principal owner of Square Foot, whereby Ingram agreed to pay for renovations to Building 4. Specifically, Ingram agreed to purchase building materials directly from a supplier and to pay Square Foot for labor. Labor was quoted at $86.50 per hour for a team of four workers. Invoices that were introduced at trial, however, show that labor was actually billed at $15.81 per man-hour. On February 12, 1990, Square Foot commenced work on Building 4. Although the Brady lease was signed two weeks later, Lillquist was not advised of its existence until the spring of 1990.

(4) By March 1990 the scope of the renovations expanded when Brady instructed Square Foot to begin working on Building 3 and its attic. At trial Richard Ingram testified that he did not authorize the additional renovations. He further testified that he informed Lillquist, Brady, and the material supplier that he could not afford more construction and would no longer pay for materials. Thereafter, Lillquist purchased materials on Square Foot's account and continued to work under Brady's instruction. Construction eventually expanded into Building 2 and its attic. When Richard Ingram learned of the work in Building 2 he ordered it stopped. Nevertheless, he continued to make payments on invoices through April and into May.

(5) In May of 1990 the Brady project, which became known as "Renaissance 90," opened for business. Shortly thereafter, the business was ordered closed by the Fire Marshal until a smoke detection system was installed and other modifications were made. Ingram employed Square Foot to make the required modifications. The project was permitted to reopen in July. In August a fire caused substantial damage to the complex. Brady subsequently left the project and has not been seen since.

(6) Square Foot claims that 5,140.5 hours of labor were provided over the course of 73 days between February 12, 1990 and July 17, 1990. During that time Square Foot installed drywall, windows, and doors; constructed stairways; and completed other renovations. The company billed $80,936.50 for the labor. The total amount due on the project, including materials, was $100,447.54, of which Ingram paid only $21,500. Square Foot was ultimately forced to bring a legal action against Ingram for the balance due. On October 9, 1992, the Superior Court ruled that Ingram was liable on a mechanics' lien in excess of $57,000. Ingram appeals to this Court for relief.

(7) Ingram...