AECOM Technical Services v. Flatiron | AECOM

Court of Appeals for the Tenth Circuit·Decided August 14, 2026·No. 25-1140·Published

Opinion

FILED

United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS August 14, 2026 Christopher M. Wolpert

FOR THE TENTH CIRCUIT Clerk of Court

AECOM TECHNICAL SERVICES, INC.,

Plaintiff / Counter defendant -

Appellee,

v. No. 25-1140 FLATIRON | AECOM, LLC,

Defendant / Counterclaimant -

Appellant.

Appeal from the United States District Court for the District of Colorado (D.C. No. 1:19-CV-02811-WJM-KAS)

Michael C. Davis of Venable LLP, Washington, District of Columbia (David L. Feinberg of Venable LLP, Washington, District of Columbia, and Mitchell Y. Mirviss of Venable LLP, Baltimore, Maryland, with him on the briefs), for Defendant/Counterclaimant-Appellant.

Bennett L. Cohen of Polsinelli PC, Denver, Colorado (Stephen D. Gurr and M. Adam Lewis with him on the brief), for Plaintiff/Counter defendant-Appellee.

Before HARTZ, PHILLIPS, and MORITZ, Circuit Judges.

PHILLIPS, Circuit Judge.

A joint venture between two infrastructure firms bid for a contract to construct express lanes on Denver’s C-470 freeway. Using designs created by an engineering subcontractor, the joint venture won the bid, and the joint venture agreed to continue working with the subcontractor on the project. But relations between the joint venture and the subcontractor soured, with each alleging sloppiness or bad faith in the other’s performance. Eventually they sued each other in federal district court. After a seventeen-day trial, a jury returned a verdict for the subcontractor on all claims and counterclaims, and the court entered judgment accordingly.

The joint venture now asks us to review a litany of rulings made during nearly five years of litigation. It argues that errors in those rulings warrant a new trial. Some of its arguments are procedural, others are substantive, but all lack merit. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm the district court’s judgment for the subcontractor.

BACKGROUND

I. Factual Background In 2015, the Colorado Department of Transportation solicited bids for constructing express lanes on a 12.5-mile stretch of State Highway 470 (also known as C-470) south of Denver. Flatiron Constructors, Inc. and AECOM Energy & Construction, Inc. formed a joint venture to bid for the project. The joint venture hired AECOM’s engineering arm, AECOM Technical Services, Inc. (ATS), to design the roadways and other structures for the eventual bid.

Proper design work was critical for accurately estimating the project’s cost. So at the pre-award stage, the joint venture and ATS entered into a formal teaming agreement. The teaming agreement required ATS’s designs to be “consistent with all professional engineering principles generally accepted as standards of the industry in [Colorado].” App. vol. VIII at 2267. It also required the designs to meet “the standard of care, skill and diligence commensurate with that provided by other design professionals at the [pre- award] stage for projects of similar size, type and complexity,” and to meet “any additional standards set forth” by the CDOT. Id. If the joint venture and ATS were shortlisted for the project, the teaming agreement required them “to negotiate in good faith” a subcontract for post-award designs. Id. at 2266.

Using ATS’s designs, the joint venture won the CDOT contract, and the parties entered into a post-award subcontract. The subcontract incorporated all the teaming agreement’s terms “not inconsistent with” the subcontract’s own. App. vol. IX at 2354. The subcontract also “supersede[d] all prior . . . agreements” and “represent[ed] the [parties’] entire agreement” going forward. Id.

Under the subcontract’s terms, the joint venture would pay ATS a lump sum of about $9 million for post-award designs. 1 The subcontract also capped ATS’s potential liability to the joint venture at roughly $10 million—“100% of

1 ATS was paid around $730,000 for its pre-award designs.

the Lump Sum in the aggregate, less direct costs, plus additional design fees incurred” for the post-award work. App. vol. VIII at 2283, 2287. The teaming agreement hadn’t capped ATS’s liability.

Over the next few years, redesigns and delays plagued the project. The parties blame each other. The joint venture says it discovered that ATS’s pre- award work was shoddy and noncompliant with the CDOT’s standards. In contrast, ATS says the joint venture cut corners and crafted its low bid by asking ATS for just a fraction of the designs the project needed.

During the construction period, ATS submitted at least twenty-seven “potential change orders” to the joint venture. Each potential change order proposed a design change and stated the value of the work that went into it.

The subcontract required all proposed changes to be “outside the work scope described herein.” Id. at 2342. And before a change order could be submitted to the CDOT, the subcontract required the order to be approved by the parties’ Design Change Control Board. Each party bore responsibility for staffing the board, which had three members—one from the joint venture, one from ATS, and one third-party neutral selected by the parties.

Before the Control Board was formed, the joint venture submitted one of ATS’s potential change orders to the CDOT without board approval. Though the CDOT paid the joint venture for some of the work that went into the proposed change, the joint venture didn’t share that money with ATS.

Later, after the board was formed, the joint venture “effectively shelved”

several of ATS’s potential change orders without submitting them to the board. App. vol. VII at 1999–2000. It did so because litigation had begun and the joint venture “assum[ed] that [the change orders] would get resolved” in court. Id. at 2000. II. Procedural History A. Claims & Counterclaims In 2019, ATS sued the joint venture in the District of Colorado, alleging breach of the subcontract and, alternatively, unjust enrichment. 2 ATS sought over $5 million in damages, mostly for uncompensated potential change orders.

The joint venture countersued for breach of the subcontract and breach of the teaming agreement. It later added a tort counterclaim for negligent misrepresentation during the subcontract negotiations. In total, the joint venture sought over $260 million in damages from delays, increased materials, and other project changes.

B. ATS’s Motion to Dismiss ATS moved to dismiss the joint venture’s counterclaims. It argued that because the negligent-misrepresentation counterclaim relied on contractual duties imposed by the teaming agreement, the counterclaim was barred by

Under Colorado law, “breach of contract and unjust enrichment claims 2

involving the same subject matter are mutually exclusive.” Bd. of Gov’rs v. Alderman, 563 P.3d 1205, 1213 (Colo. 2025).

Colorado’s economic-loss rule. 3 It also argued that because the subcontract superseded the teaming agreement, any counterclaim based on ATS’s pre-award work must be brought as a counterclaim for breach of the subcontract.

The district court agreed that ATS’s duties in negotiating the subcontract were defined by the teaming agreement, not by tort law. AECOM Tech. Servs. v. Flatiron | AECOM, LLC (MTD Order), No. 19-cv-2811, 2021 WL 698665, at *4 (D. Colo. Feb. 23, 2021). So the court dismissed the joint venture’s negligent-misrepresentation counterclaim as barred by the economic-loss rule. Id. at *4, *6. But the court declined to dismiss the joint venture’s counterclaim for breach of the teaming agreement, ruling that ATS’s argument depended on facts outside the pleadings. See id. at *5.

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