Opinion Number: 1999-NMCA-080
Filing Date: May 17, 1999
Docket No. 19,244
A.D. POWERS, d/b/a POWERS STRUCTURES,
Plaintiff-Appellant/Cross-Appellee,
v.
WENDELL G. MILLER and JANET B. MILLER,
husband and wife,
Defendants-Appellees/Cross-Appellants.
APPEAL FROM THE DISTRICT COURT OF LINCOLN COUNTY
Robert M. Doughty, II, District Judge
J. Robert Beauvais
J. Robert Beauvais, P.A.
Ruidoso, NM
for Appellant/Cross-Appellee
Don E. Dutton
The Dutton Firm, Ltd.
Ruidoso, NM
for Appellees/Cross-Appellants
WECHSLER, Judge.
{1}
A.D. Powers d/b/a Powers Structures (Contractor)
appeals and Wendell G. and Janet B. Miller (Homeowners)
cross-appeal from the trial court's judgment in this dispute
over the construction of a residence. On appeal, Contractor
raises two issues of first impression. First, he argues
that the trial court erred in requiring proof by clear and
convincing evidence that the parties modified their written
contract by a subsequent oral agreement. We hold that the
trial court was correct in ruling that oral modifications to
written contracts requiring modifications be in writing must
be proven by clear and convincing evidence. Second,
Contractor argues that this Court lacks jurisdiction over
Homeowners' cross-appeal because Homeowners did not timely
file notice of cross-appeal. We hold that the notice was
timely and in so doing clarify the application of the rule
concerning computation of time to the facts of this case.
{2}
In addition, Contractor contends that the trial court
erred in allowing parol evidence to clarify the contract
regarding the intended use of areas labeled "storage room"
and "unexcavated space" on the plans. He also contends that
the trial court erred by determining that he had not proven
the oral modifications to the contract, by rejecting his
defenses of equitable estoppel and mitigation of damages,
and by denying him recovery in quantum meruit for the
additional work performed on the residence.
{3}
In their cross-appeal, Homeowners argue that the trial
court erred in offsetting their damages for substandard work
by an amount representing the expense of modifications or
additional items that Homeowners agreed they had requested.
We affirm the judgment of the trial court.
Facts
{4}
Contractor is a licensed general contractor. In 1993,
Homeowners approached Contractor about building a home for
them. After discussing the design and negotiating the
price, on November 28, 1993, the parties entered into a
written contract for the construction of a residence for a
price of $258,450.35. The contract consisted of a written
agreement labeled "proposal and acceptance," two pages of
specifications drawn up by Contractor based on the
discussions concerning the design, and plans drawn up by
someone hired by Contractor. The contract provided that
"[a]ny alteration or deviation from above specifications
involving extra costs will be executed only upon written
orders, and will become an extra charge over and above the
estimate." The contract also warranted that all work would
be completed "in a workmanlike manner according to standard
practices."
{5}
As often happens, the house that was built differed in
a number of respects from the plans and specifications.
After Homeowners moved into the house, Contractor presented
Homeowners with a list of additional costs that were the
result of modifications to the plans and specifications.
Contractor contended that Homeowners had requested or
authorized these items as additional expenses over and above
the contract price. Homeowners paid for some of the alleged
changes or modifications but refused to pay for others.
After Homeowners moved into the house, they discovered a
number of problems. Homeowners asked Contractor to fix the
problems with the house. Contractor fixed some but not all
of the problems.
{6}
When the parties were unable to resolve their
differences, Contractor filed suit against Homeowners.
Contractor sought to recover the cost of what he refers to
as "extras," meaning items not required by the written plans
and specifications. In the alternative, Contractor contended that he should be compensated for the cost of the
extras under the theory of quantum meruit. Homeowners denied
that they had requested the extras and counterclaimed for
the cost of repairing certain allegedly substandard aspects
of the home.
{7}
The case was tried to the bench in July 1997. Neither
side was satisfied by the outcome. The trial court
determined that oral modifications to written contracts must
be proven by clear and convincing evidence. The trial court
determined generally that the contract was ambiguous as to
some items, that it was silent as to others, and that still
other changes or additions had been made unilaterally by
Contractor without the prior approval of Homeowners. Thus,
the trial court concluded that Homeowners only owed
Contractor for certain extras that they had stipulated to
during trial. The total cost of these items was $5346.67.
In addition, the trial court concluded that some of the work
was substandard and awarded Homeowners $9395, the cost of
correcting the problems. The trial court rejected
Homeowners' contention that they had already paid the
additional $5346.67 owed to Contractor and offset that
amount against the cost of fixing the various problems.
Thus, the trial court entered judgment in favor of
Homeowners in the amount of $4047.33. These appeals
followed.
Standard of Proof
{8}
Contractor contends that the trial court erred in
determining that he was required to prove the oral
modifications to the contract by clear and convincing
evidence. We disagree. A written contract may be modified
by a subsequent oral agreement, even though the written
contract requires that modifications be in writing. See
Medina v. Sunstate Realty, Inc., 119 N.M. 136, 138-39, 889
P.2d 171, 173-74 (1995). The question before this Court is
simply the standard or quantum of proof required to prove
such modifications.
{9}
Contractor relies on Superior Concrete Pumping, Inc. v.
David Montoya Construction, Inc., 108 N.M. 401, 404, 773
P.2d 346, 349 (1989), for the proposition that oral
modifications to written contracts need only be proven by a
preponderance of the evidence. However, Superior Concrete
Pumping, Inc. involved oral modifications to an oral
contract, not to a written contract, as in this case. See
id. In Archuleta v. Velasquez, 60 N.M. 97, 99, 287 P.2d
989, 991 (1955), our Supreme Court held that "evidence of
rescission of a written contract by a subsequent parol
agreement must be clear, positive and above suspicion." See
also A & P Constr. Co. v. Dorn, 79 N.M. 292, 292, 442 P.2d
782, 782 (1968) ("[E]vidence of rescission of a written
contract by a subsequent parol agreement must be clear, positive and convincing."); Driver-Miller Plumbing, Inc. v.
Fromm, 72 N.M. 117, 118-19, 381 P.2d 53, 54 (1963) (assuming
without deciding that oral modifications of written
contracts must be proven by clear and convincing evidence
because evidence was clear and convincing in that case);
Twin Forks Ranch, Inc. v. Brooks, 1998-NMCA-129, ¶ 8, 125
N.M. 674, 964 P.2d 838 ("The party seeking to reform a
writing must prove by clear and convincing evidence that a
mutual mistake occurred.").
{10}
We consider rescission to be sufficiently analogous to
modification that it is appropriate to apply a heightened
standard of proof to oral modifications of written contracts
that specify that modifications must be in writing. We are
aware that the phrasing of the standard varies slightly from
case to case. However, we believe that it is appropriate to
characterize the standard of proof as clear and convincing
evidence because that phrase is a term of art with a well-established meaning. See In re Sedillo, 84 N.M. 10, 12, 498
P.2d 1353, 1355 (1972) ("For evidence to be clear and
convincing, it must instantly tilt the scales in the
affirmative when weighed against the evidence in opposition
and the fact finder's mind is left with an abiding
conviction that the evidence is true.").
{11}
We find support for our decision in cases from other
jurisdictions that require that a subsequent oral
modification of a written contract be proven by clear and
convincing evidence. See City Nat'l Bank v. First Nat'l
Bank & Trust Co., 732 S.W.2d 489, 492 (Ark. Ct. App. 1987)
(clear and convincing evidence); Kline v. Clinton, 645 P.2d
350, 355 (Idaho 1982) (clear and convincing); Duncan v.
Cannon, 561 N.E.2d 1147, 1149 (Ill. App. Ct. 1990) (clear
and convincing evidence); Glass v. Bryant, 194 S.W.2d 390,
393 (Ky. 1946) (clear and convincing); Duffy v. Park Terrace
Supper Club, Inc., 206 N.W.2d 24, 28 (Minn. 1973) (clear and
convincing); Jenson v. Olson, 395 P.2d 465, 469 (Mont. 1964)
(clear, convincing, and inconsistent with written contract);
Lambe-Young, Inc. v. Cook, 320 S.E.2d 699, 702 (N.C. Ct.
App. 1984) (clear and convincing); Mathis v. Thunderbird
Village, Inc., 389 P.2d 343, 349 (Or. 1964) (clear and
convincing); Nicolella v. Palmer, 248 A.2d 20, 23 (Pa. 1968)
(clear, precise, and convincing); Combs v. McLynn, 419
S.E.2d 903, 907 (W. Va. 1992) (clear and positive evidence).
But see Freeman v. Stanbern Constr. Co., 106 A.2d 50, 55
(Md. 1954) (preponderance of the evidence); Gagnon v.
Wright, 200 A.2d 196, 198 (D.C. 1964) (same); Swindell v.
Bulger, 526 So. 2d 422, 424 (La. Ct. App. 1988) (same). We
recognize that not all of these cases include written
contracts with a provision that any modification must be in
writing, or make such a distinction. Nonetheless, we limit
our decision today to the facts before us. Thus, oral
modifications to a written contract requiring that any
modifications must be made in writing must be proven by clear and convincing evidence.
{12}
We note that different courts have attributed the clear
and convincing standard of proof to different reasons. Some
courts appear to relate this heightened standard of proof to
similar requirements for claims of fraud, accident, or
mistake. Compare Nicolella, 248 A.2d at 23-24, with Barrett
v. Bank of America, N.T. & S.A., 229 Cal. Rptr. 16, 21-22
(Ct. App. 1986) (rejecting use of clear and convincing
standard because California does not apply a heightened
standard of proof to fraud claims). Still other courts have
attributed the heightened standard to the doctrine of waiver
of a known right and have held that because such waivers
must be proven by clear and convincing evidence, the same
burden of proof should apply to oral modifications to a
written contract. See DRG/Beverly Hills, Ltd v. Chopstix
Dim Sum Cafe & Takeout III, Ltd., 35 Cal. Rptr. 2d 515, 518-19 (Ct. App. 1994). As the Supreme Court of Oregon
observed: "If the [standard of proof of clear and convincing
evidence] has a reason, it is not some intrinsic
implausibility that an agreement once made may later be
changed but rather the relative probative force of a
document as against controverted testimony of an alleged
oral replacement." Lichty v. Merzenich, 563 P.2d 690, 692
(Or. 1977). While all of these considerations are
important, we believe that the higher standard of proof is
appropriate in order to avoid the type of ambiguous
situation that occurred in this case, in which one party
thought the contract had been modified and the other did not
think a modification had occurred. We further believe that
requiring proof by clear and convincing evidence is an
appropriate balancing of the principles of freedom of
contract against the sanctity of written contracts. That
standard reduces the risk that the parties' intent as set
forth in the contract will not prevail. Cf. In re Winship,
397 U.S. 358, 363 (1970) (stating that reasonable-doubt
standard reduces risk of criminal convictions due to factual
error).
Other Arguments on Appeal
{13}
Contractor's other arguments are easily answered.
Contractor contends that the trial court erred in admitting
parol evidence to clarify the contract regarding the
intended use of the areas labeled "storage room" and
"unexcavated space" on the plans. We note, however,
Contractor did not object to this testimony below and
therefore cannot raise this argument for the first time on
appeal. See Woolwine v. Furr's, Inc., 106 N.M. 492, 496-97,
745 P.2d 717, 721-22 (Ct. App. 1987) (noting that a party
cannot raise new arguments on appeal); State v. Lucero, 104
N.M. 587, 590, 725 P.2d 266, 269 (Ct. App. 1986)
(reiterating that in order to preserve an issue for appeal,
the appellant must have made a timely, specific objection to the evidence during the trial).
{14}
Contractor makes a number of challenges to the
sufficiency of the evidence to support various
determinations by the trial court. On appeal, we view the
evidence in the light most favorable to the decision below,
resolving all conflicts in the evidence in favor of that
decision and disregarding evidence to the contrary. See
Lopez v. Adams, 116 N.M. 757, 758, 867 P.2d 427, 428 (Ct.
App. 1993). When a finding is made against the party having
the burden of proof on the issue, we will affirm that
finding if the trial court could rationally reject the
evidence offered in support of that finding. See id. When
a party is required to prove a matter by clear and
convincing evidence, our review on appeal takes this
heightened standard of proof into account. See Twin Forks
Ranch, Inc., 1998-NMCA-129, ¶¶ 8, 9. We emphasize, however,
that the question on appeal is whether substantial evidence
supports the trial court's findings, not whether the
evidence would have supported different findings. See
Wisznia v. State Human Servs. Dep't, 1998-NMSC-011, ¶ 10,
125 N.M. 140, 958 P.2d 98.
{15}
Initially, Contractor argues that he proved that the
parties modified the contract to allow changes that would
increase the cost to be made without written change orders.
Contractor testified that Homeowners did not always ask for
a price on the change, although occasionally they did. When
they did ask, Contractor would give them an approximate
price. Asked why he did not execute written change orders,
Contractor testified:
Early on, the relationship of the Millers and
myself became very informal. We seemed to work
together on this project very mutually minded.
Things were very smooth. There was never a
question when I presented an invoice for payment;
they cut me a check and handed it to me
graciously. They were very appreciative of the
work I was doing and having done for them. And
there was a mutual trust that evolved there. So,
it was, it was a situation where if they asked for
something to be done, and it was verbally
agreeable, then, I assumed that there would be no
complication in collecting the additional monies
for having something extra done.
Homeowners, on the other hand, denied that the construction
changes were made at their request. Indeed, Mr. Miller
testified that Contractor made the construction changes
without consultation and that Contractor never told him that
these changes would increase the amount due under the
contract. The trial court could properly reject
Contractor's testimony and accept Mr. Miller's testimony that he was not told that the various changes would result
in additional charges over and above the contract price.
See Lopez, 116 N.M. at 758, 867 P.2d at 428.
{16}
Contractor additionally argues that the trial court
erred in finding that Homeowners were not equitably estopped
or barred by the doctrine of laches from asserting damages
which were not disclosed until immediately before trial. In
support of this contention, Contractor points out that about
a year after Homeowners moved into the house, he received a
letter from their attorney pointing out the problems
Homeowners had noticed with the house. During the
litigation, Contractor argued that the letter was a final
"punch list" and that Homeowners should not be allowed to
claim other construction problems or defects that were not
mentioned in the letter. However, Mr. Miller testified that
he met with Contractor at about the same time and verbally
informed Contractor of additional problems. Under these
circumstances, the trial court could rationally reject
Contractor's version of events and find that Contractor was
aware of these additional problems with the house almost two
years before trial. See id.; see also State v. Sutphin, 107
N.M. 126, 131, 753 P.2d 1314, 1319 (1988) ("The fact finder
may reject defendant's version of the incident.").
{17}
Contractor further argues that his testimony generally
established that certain changes or additions were made. We
note, however, that the issue before the trial court was not
whether the changes had been made, but whether Homeowners
authorized those changes in advance as additional charges
not covered by the contract price. Moreover, Contractor's
argument fails to take into account the conflicting evidence
offered by Homeowners on these issues. For example,
Contractor relies on his own testimony that a change in the
manner of constructing the driveway was discussed with Mr.
Miller, and Mr. Miller authorized the additional expense.
However, Mr. Miller testified that the contract did not
specify how the driveway was to be constructed and that he
was not told that there would be an additional charge for
the construction method that Contractor used. Contractor
contends that after the contract was signed, Homeowners
asked for a change in certain construction details of the
kitchen cabinets and countertops. Contractor contends that
he told Homeowners that this change would cost extra.
However, Homeowners testified that they had specified these
details of construction before the contract was signed and
that they were never told there would be an additional
charge for these details. Contractor also contends that
Homeowners specifically asked him to build a wet bar in the
basement area and to put in a closet under the stairs.
Contractor so testified during trial. However, it was
undisputed that no written change order was executed
reflecting these changes. On all of these issues, the trial
court could properly reject Contractor's testimony and believe the testimony offered by Homeowners. See Lopez, 116
N.M. at 758, 867 P.2d at 428.
{18}
Contractor also challenges the trial court's rejection
of his contention that Homeowners failed to mitigate their
damages by failing to repair the problems with the home
prior to trial. "The legal rule of mitigation is designed
to discourage persons against whom wrongs have been
committed from passively suffering economic loss which could
be averted by reasonable efforts, or from actively
increasing such loss where prudence requires that such
activity cease." Hickey v. Griggs, 106 N.M. 27, 30, 738
P.2d 899, 902 (1987). We acknowledge that Homeowners'
expert, Steve Strain, testified that the earlier the various
problems were fixed, the better. However, we agree with
Homeowners that, apart from this general statement,
Contractor did not offer any evidence that the cost of
fixing the various problems had increased due to the lapse
of time. Moreover, Mr. Miller testified that after a few
months Contractor refused to correct problems with the
residence that had been pointed out to him. Under the
circumstances, the trial court could properly have
determined that Contractor was at least partially
responsible for the failure to timely correct the various
problems. Thus, we hold that the evidence supports the
trial court's rejection of Contractor's defense.
{19}
Finally, Contractor argues that the trial court erred
in denying him recovery in quantum meruit for the additional
costs incurred due to changes or modifications made during
construction. We disagree. We recognize that even if there
is no contract, recovery may be allowed under quasi-contract
or quantum meruit for the reasonable value of services and
materials furnished at the request of the one to be charged.
See State ex rel. Gary v. Fireman's Fund Indem. Co., 67 N.M.
360, 364-65, 355 P.2d 291, 294 (1960). However, in this
case the trial court found as fact that the construction
changes for which Contractor sought to recover were
undertaken by Contractor "unilaterally, and without prior
approval from" Homeowners. As this Court has pointed out:
"'Where the defendant has a right to choose for himself
whether to receive a benefit, and where restitution would
deprive him of this choice by requiring payment for a
"benefit" the defendant may not want, restitution is often
denied.'" Tom Growney Equip., Inc. v. Ansley, 119 N.M. 110,
112, 888 P.2d 992, 994 (Ct. App. 1994) (quoting 1 Dan B.
Dobbs, Dobbs Law of Remedies § 4.9(2), at 683 (2d ed. 1993).
We think that this is such a case. The trial court
determined that Homeowners did not authorize the
construction changes that increased the price. Under these
circumstances, it would be unfair to Homeowners to require
that they pay for the cost of those changes.
Timeliness of Cross-Appeal
{20}
Contractor argues that the notice of cross-appeal was
not timely filed. The timely filing of the notice of cross-appeal is a mandatory precondition to our exercise of
jurisdiction over it. See Trujillo v. Serrano, 117 N.M.
273, 276-78, 871 P.2d 369, 372-74 (1994). The trial court's
judgment was filed on January 12, 1998. Contractor served
his notice of appeal on Homeowners by mailing it on February
6, 1998. It was timely filed in district court on February
9, 1998. Homeowners filed the notice of cross-appeal on
February 23, 1998. Contractor points out that Rule 12-201(A) NMRA 1999 requires the notice of cross-appeal to be
filed within ten days of service of the notice of appeal.
Thus, Contractor contends that since he served the notice of
appeal on February 6, 1998, the notice of cross-appeal was
required to be filed no later than February 16, 1998.
Homeowners argue that they timely filed the notice of cross-appeal pursuant to Rule 12-308 NMRA 1999 concerning
computation of time. We agree with Homeowners.
{21}
Rule 12-201(A) provides in pertinent part that "[i]f a
timely notice of appeal is filed by a party, any other party
may file a notice of appeal within ten (10) days after the
date on which the first notice of appeal was served or
within the time otherwise prescribed by this rule, whichever
period last expires." Although Rule 12-201(A) explicitly
excludes the three-day mailing provision from the
computation of time for filing a notice of appeal, the
sentence of the rule concerning notice of cross-appeal does
not include such an exclusion, and in fact runs the time for
filing notice of cross-appeal from the time of service,
thereby triggering Rule 12-308(B). As a consequence, we
look to Rule 12-308 concerning computation of time. Rule
12-308 (emphasis added) reads as follows:
A. Computation. In computing any period of
time prescribed or allowed by these rules, by
order of court or by any applicable statute, the
day of the act, event or default from which the
designated period of time begins to run shall not
be included. The last day of the period so
computed shall be included unless it is a
Saturday, Sunday or a legal holiday, or, when the
act to be done is the filing of a paper in court,
a day on which weather or other conditions have
made the office of the clerk inaccessible, in
which event the period runs until the end of the
next day which is not one of the aforementioned
days. When the period of time prescribed or
allowed is less than eleven (11) days,
intermediate Saturdays, Sundays and legal holidays
shall be excluded in the computation. As used in
this rule, "legal holiday" includes New Year's
day, Martin Luther King, Jr.'s birthday, Memorial
day, Independence day, Labor day, Columbus day, Veterans' day, Thanksgiving day, Christmas day and
any other day designated as a state or judicial
holiday.
B. Additional time after service by mail.
Except as otherwise provided by these rules,
whenever a party is required or permitted to do an
act within a prescribed period after service of a
paper upon the party and the paper is served by
mail, three (3) days shall be added to the
prescribed period.
{22}
The emphasized portion of Rule 12-308(A) was added to
the rule in 1997 apparently to bring our rules of appellate
procedure into line with the rules of procedure for the
district courts, which are in turn based on the Federal
Rules of Civil Procedure. See Rule 1-006(A) NMRA 1999; Rule
5-104(A) NMRA 1999; Fed. R. Civ. P. 6(a). Therefore, cases
interpreting the federal rules are persuasive authority on
this issue. See Century Bank v. Hymans, 120 N.M. 684, 690,
905 P.2d 722, 728 (Ct. App. 1995). The weight of federal
authority treats the "prescribed period" as the period
prescribed in the procedural rule in question, in this case
Rule 12-201(A), without regard to the manner in which
service was made. See Tushner v. United States Dist. Court,
829 F.2d 853, 854-55 (9th Cir. 1987); Mullins v. Hinkle, 953
F. Supp. 744, 746-48 (S.D. W. Va. 1997); Vaquillas Ranch Co.
v. Texaco Exploration & Prod., Inc., 844 F. Supp. 1156,
1158-59 (S.D. Tex. 1994); Coles Express v. New England
Teamsters & Trucking Indus. Pension Fund, 702 F. Supp. 355,
356-57 (D. Me. 1988); Nalty v. Nalty Tree Farm, 654 F. Supp.
1315, 1316-18 (S.D. Ala. 1987); see also Epperly v. Lehmann
Co., 161 F.R.D. 72, 74-76 (S.D. Ind. 1994) (agreeing but
counting the three days for mailing first); Harris v. City
of Kansas City, Kan., 703 F. Supp. 1455, 1463 (D. Kan. 1988)
(same). But see THK Am., Inc. v. NSK Ltd., 157 F.R.D. 651,
654 (N.D. Ill. 1994); Pagan v. Bowen, 113 F.R.D. 667, 668
(S.D. Fla. 1987).
{23}
The purpose of the federal amendments was to extend the
response time under various rules prescribing ten-day time
limits. See Nalty, 654 F. Supp. at 1316. Thus, aggregating
the ten-day period with the three additional days allowed
when service is made by mail would subvert the purpose of
the amendments. See id. at 1317. Moreover, the three extra
days given when service is made by mail is generally
considered to reflect the time that it will take for the
document to be delivered. See id. Adding the three-day
period of time to the ten days would result in parties
served by mail having significantly less time to respond
than parties served personally. Such a result is contrary
to the general purpose of the rules. See Tushner, 829 F.2d
at 855; see also 1 James Wm. Moore, Moore's Federal
Practice § 6.05[2], at 6-32 (3d ed. 1999); 4A Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure §
1171, at 517-19 (2d ed. 1987).
{24}
In this case, Contractor served his notice of appeal by
mail on Friday, February 6, 1998. Thus, Homeowners' ten days
in which to file their notice of cross-appeal did not end
until Friday, February 20, 1998. Because they had been
served by mail, on February 20, 1998, Homeowners still had
an additional three days in which to file their notice of
cross-appeal. Homeowners filed their notice of cross-appeal
timely on Monday, February 23, 1998. We need not, and
therefore do not, determine whether the three additional
days allowed when service has been by mail does or does not
include weekends and legal holidays.
Merits of the Cross-Appeal
{25}
As noted above, the trial court found that Homeowners
had requested certain non-construction extras. These items
and the additional expense associated with each were as
follows:
Powder room carpet $186.00
Furniture C.O.D. 297.69
Accessories for Central Vac System 45.00
Custom built electric boxes 250.00
Overage - appliance allowance 1495.00
Refrigerator 500.00
Door Hardware 660.00
Overage - carpet 1913.98
Total $5347.67
Homeowners contend that the undisputed testimony below indicates that they paid for these
items by a check for $6240.93 sent to Contractor in June 1995.
{26}
We agree that it was undisputed below that a check for
that amount was sent to Contractor at that time, was
received by Contractor, and was negotiated by Contractor.
However, the testimony concerning the charges covered by the
check was confusing. Contractor testified that he
considered it a partial payment on the $12,497.88 that he
had told Homeowners they owed but he did not identify any
particular items that he considered to have been paid by the
check. Mr. Miller testified that the check covered the
C.O.D. charges on the furniture, the amount billed for both
wet bars, the amount owed for the refrigerator, the amount
owed for the carpet overage, the amount owed for the vacuum
accessories, the amount owed for three additional light
fixtures, and an undisputed $650 still owed on the original contractor price. In short, if the trial court believed the
testimony of Mr. Miller, only $2756.67 of the $6240.93 check
sent to Contractor in June 1995 covered items that were
included in the $5347.67 that Homeowners admitted during
trial was the cost of changes that they had authorized. But
the trial court was not required to believe Mr. Miller's
testimony. See Sutphin, 107 N.M. at 131, 753 P.2d at 1319.
Under the circumstances of this case, the trial court could
rationally reject Mr. Miller's testimony that the check in
question was for any of the items that the trial court
ultimately found that Homeowners had either admitted were
owing or had stipulated to during trial. See Lopez, 116
N.M. at 758, 867 P.2d at 428.
Conclusion
{27}
The trial court correctly required Contractor to prove
oral modifications to the written contract by clear and
convincing evidence. The notice of cross-appeal was timely
filed. In addition, the trial court's findings are
supported by substantial evidence. We affirm the judgment
of the trial court.
{28}
IT IS SO ORDERED.
__________________________
JAMES J. WECHSLER, Judge
WE CONCUR:
______________________________
LYNN PICKARD, Chief Judge
______________________________
RUDY S. APODACA, Judge