Posko v. Climatic Control Corp.

Henderson, J., delivered the opinion of the Court. This appeal is from a judgment for $5,985.60, ($5,568.-00 with interest) entered upon a verdict of the trial ⁵⁸⁰ court, sitting without á jury, based upon an alleged settlement agreement between the parties. The appellants contend that there was no legally sufficient evidence to support the court’s finding and that it was clearly erroneous. By written contract dated September 30, 1947, Climatic agreed to install certain air conditioning and ventilation equipment in premises owned and operated by the Poskos at 6700 German Hill Road, Baltimore, for the total sum of $7,318.

Climatic installed the air condition ing equipment but failed to complete the contract by installing the proper exhaust system. Climatic claimed that its failure to install was due to a failure of the architect to locate the vents upon the plans until after the walls were closed. At á conference on January 11, 1949, attended by the architect and the attorneys for the parties, a tentative adjustment was agreed upon, but the appellants refused to go through with it, discharged their attorney, Mr. Jackson, and employed another attorney, Mr. Kolodny. Suit was filed on March 18, 1949 upon two common counts and a special count upon the contract, to which pleas were filed, as well as a replication and rejoinder.

On March 24, 1950, an amended declaration was filed, including the two common counts, omitting the count on the contract, and setting up in count three the alleged settlement made with Mr. Jackson, and in count four an alleged settlement made with Mr. Kolodny on November 9, 1949. General issue pleas were filed, and in response to a demand for particulars the defendants, through Mr. Kolodny, filed an answer to the effect that the plaintiff had breached its original contract, that the units installed never worked properly, and that the plaintiff had refused to remove them on demand. These particulars, of course, related only to the first and second counts. When the case came on for trial the court found for the defendants on the first three counts, but for the plaintiff on the fourth count.

The appellants, on this appeal, are represented by new counsel. ⁵⁸¹ The only evidence of the settlement alleged in the fourth count consisted of stipulations or admissions made in open court by Mr. Kolodny. The colloquy was as follows: “(Mr. Kolodny) * * * I want to state to the court there were negotiations between Mr. Baldwin and myself, relative to the possible settlement, or, shall we say, for settlement of this claim; that we had several conversations, and, at long last, we did come to a point at which I said to Mr. Baldwin, ‘prepare the releases and Order of Satisfaction’ — I believe that is correct — and it was at a figure — will you quote the figure? (Mr. Baldwin) I will agree that is part of what was said and done, and stipulate, actually, as far as you have gone. (Mr. Kolodny) As a result I said, ‘This is it, gentlemen, send me the releases and Order of Satisfaction’; after which I communicated with my clients and, in order to be accurate, my clients, at the time, were notified to raise the funds necessary to settle this case.

I then called Mr. Baldwin and gave him that information, I believe, verbally, and also by letter, and I think that is the way the matter stood until this case was reopened, after being on the trial docket for so long, and that is the position we found ourselves in as to that. I thought I would tell it rather than have Mr. Baldwin putting me on the stand and going through a lot of unnecessary detail. (Mr. Baldwin) He has stipulated about three-fourths of what I would ask him to stipulate. If he would stipulate to the other things that would be our entire proof under the fourth count.

(Mr. Kolodny) I may object even if I do agree. Ask me. If it is our understanding, I will be glad to agree to it. (Mr. Baldwin) Will you stipulate this: that in November, 1949, you were attorney of record in this case?

(Mr. Kolodny) That I was. (Mr. Baldwin) And that, after correspondence with me and several telephone calls, you advised me on October 28, 1949, on which date I oifered, on behalf of Climatic Control Corporation, to take off $1,500 for immediate payment; that you would advise me by Wednesday, after conferring with your clients. (Mr. ⁵⁸² Kolodny) That is correct. (Mr. Baldwin) I am reading from my notes.

(Mr. Kolodny) Up to that point, that is correct. (Mr. Baldwin) Then, would you agree and stipulate further, following that date of October 28th,' and with some funds reportedly in hand, you came to my office and said, ‘No, they would not pay on taking merely $1,500 off, but they would take $2,000 off and pay me the difference if Climatic Control Corporation would accept $2,000.’ (Mr. Kolodny) They may not be the exact words, but that was approximately right. (Mr. Baldwin) I am only going through the settlement negotiations because they arrive at a final answer. Did I not then call you back that same day, I told you that day $1,500 was the limit of my authority, and I had