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Cunningham v. Southland Constr. Co.

Citations: 252 Cal. App. 2d 722; 60 Cal. Rptr. 849; 1967 Cal. App. LEXIS 1560Docket: Civ. No. 31204

Court: California Court of Appeal; July 24, 1967; California; State Appellate Court

Narrative Opinion Summary

The case involves an appeal from a judgment favoring the plaintiff, who sought payment for materials supplied to a construction company for a warehouse project. The plaintiff alleged an oral agreement with the construction company for the delivery of materials, which were used in the project. The construction company denied the allegations, arguing that the plaintiff was unlicensed and thus the contract was void. Additionally, a counterclaim was made for unpaid work on a separate job. The court found evidence supporting the plaintiff's claim of an oral contract and ruled that the plaintiff was not acting as a contractor, thereby not requiring a license. The written purchase order was deemed invalid, and parol evidence was admitted to establish the oral agreement. The bondsman, Citizens Insurance Company, was held liable to compensate the plaintiff under the bond. The court awarded the plaintiff a sum from the county and affirmed the judgment, rejecting the appellants' claims of error and insufficient evidence. The appellate court upheld the decision, and further petitions for rehearing and Supreme Court review were denied.

Legal Issues Addressed

Liability Under Surety Bonds

Application: Citizens Insurance Company, as the bondsman, was held liable under the bond to pay for the materials supplied by Cunningham.

Reasoning: Citizens was found liable under the bond, requiring payment to Cunningham for the supplied materials and reasonable attorney's fees for collection efforts.

Oral Contracts in Construction Law

Application: The court recognized the validity of an oral contract for the delivery of materials used in construction, despite the existence of a purported written purchase order.

Reasoning: The court found substantial evidence supporting that Southland, under an oral agreement, directed Cunningham to deliver materials that were ultimately used in the construction project, totaling $7,732.89, which Southland had not paid.

Parol Evidence Rule

Application: The court allowed parol evidence to clarify the terms of the oral agreement due to the ambiguity of the written purchase order.

Reasoning: The court concluded that the introduction of parol evidence did not violate the parol evidence rule due to the ambiguity of the purchase order and the disputed validity of the written agreement.

Requirement of Contractor's License

Application: Cunningham was not required to possess a contractor's license as he was deemed a material supplier under the oral contract, not a contractor or joint venture member.

Reasoning: The court also concluded that Cunningham had not engaged in construction at the site nor possessed a contractor’s license.