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Owner Personally Liable to Unpaid Supplier


May 8, 2000


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(A revised version of this article appears in The Construction Lawyer, Volume 20, No. 2, April 2000, published by the American Bar Association's Forum on the Construction Industry.)


By John W. Ralls

A supplier (Blake) delivered paving materials to a construction site in response to an order placed by a prime contractor. The owner was aware of the deliveries and personally paid for one installment. When the supplier was not paid, it sued the owner and sought a personal judgment against the owner for the debt. During the trial, the prime contractor testified that the owner had personally authorized the contractor to order materials necessary to complete the work. Blake Sand & Gravel, Inc. v. Saxon, 98 Wash.App. 218, 989 P.2d 1178 (Wash. App. 1999).

The trial court entered a personal judgment against the owner. The owner appealed, claiming there was insufficient evidence of agency. The Washington Court of Appeals affirmed.

The court held, "[A]n agent's authority can be established based on the direct testimony of the alleged agent." The prime contractor had testified that he was authorized to order materials and supplies needed for the project and that the owner agreed to pay for them. In view of this testimony and in view of the fact that the owner was aware of Blake's deliveries and because the owner had paid Blake directly on one occasion, the court found that the evidence supported the judgment.


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