Allied Erecting & Dismantling Co. v. Uneco Realty Co.

765 N.E.2d 420, 146 Ohio App. 3d 136
CourtOhio Court of Appeals
DecidedSeptember 26, 2001
DocketCase Nos. 98 C.A. 77 and 99 C.A. 150.
StatusPublished
Cited by17 cases

This text of 765 N.E.2d 420 (Allied Erecting & Dismantling Co. v. Uneco Realty Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Erecting & Dismantling Co. v. Uneco Realty Co., 765 N.E.2d 420, 146 Ohio App. 3d 136 (Ohio Ct. App. 2001).

Opinion

Gene Donofrio, Judge.

Plaintiff-appellant, Allied Erecting and Dismantling Company, Inc. (“Allied”), appeals from two decisions of the Mahoning County Court of Common Pleas, one granting a directed verdict in favor of defendant-appellee, Ruhlin Company *139 (“Ruhlin”), and another adopting the magistrate’s decision that overruled Allied’s motions to mold the verdict and to correct the judgment.

The parties in this case were previously before this court in the case of Allied Erecting & Dismantling Co. v. Uneco Realty Co. (1996), 116 Ohio App.3d 410, 688 N.E.2d 526, on an appeal by defendants-appellees, United Excavating Company and Uneco Realty Company (“United/Uneco”), regarding the dismissal of their counterclaim against Allied and Ruhlin. A restatement of the facts as set out in that case is applicable in this case.

The Ohio Department of Transportation (“ODOT”) awarded Ruhlin the primary contract for the South Avenue bridge project. Per ODOT contract requirements, Ruhlin obtained a $6,500,000 surety bond from defendant-appellee, St. Paul Mercury Insurance Company (“St. Paul”). Ruhlin subsequently entered into independent subcontracts with Uneco and United. Though Uneco and United are separate companies, Ted Soroka is president of both, and both are represented by the same counsel in this matter. Uneco contracted to supply dirt for the bridge project, while United contracted for certain demolition and dirt compaction. On March 5, 1991, United/Uneco entered into an exclusive supply contract with Allied for the purchase of approximately 76,000 cubic yards of dirt at $1.25 per cubic yard. The Allied-United/Uneco contract provided that Allied would load the dirt from its site on Poland Avenue in Youngstown, Ohio, onto trucks furnished by United/Uneco for transport to the South Avenue bridge project site.

After the delivery of approximately 11,000 cubic yards of dirt, an authorized random sampling of Allied’s supply site revealed that the dirt contained trace amounts of asbestos and did not meet the specifications required by the ODOT contract. A stream of letters was exchanged between Allied and United/Uneco addressing additional expenses Allied alleged that it incurred due to United/Uneco’s delay in removing the dirt, the necessity for Allied to be compensated for these expenses, and other related terms of their contract. On October 29, 1991, Allied notified United/Uneco that due to the additional site work performed by it at the request of United/Uneco and the resulting delay of the removal sequence, the unit price of the dirt would be increased to $3.25 per cubic yard, effective December 31,1991.

In a letter dated December 1, 1991, United/Uneco acknowledged Allied’s October 29, 1991 letter, stating that it was aware of the delay-related expenses and that it “anticipate^] that ODOT and the general contractor [Ruhlin would] undoubtedly grant a percentage raise relative to our contract.” This letter also noted that due to the delays, United/Uneco would now have to use approximately 22,500 cubic yards of sand and gravel, instead of dirt, for the project. Since Allied did not have a source of supply for sand and gravel, this amount was to be *140 obtained from another source and would correspondingly decrease the amount of dirt United/Uneco would need to purchase from Allied.

In subsequent correspondence, United/Uneco advised Allied that it was not in a position to request additional compensation from ODOT, since it did not have a contract with ODOT, but that it would pursue the matter through Ruhlin.

On June 12, 1992, at the request of United/Uneco, Allied provided Ruhlin with a letter of assurance, stating that as a gesture of good faith, it would continue to provide the dirt as contracted, while reserving the right to seek additional compensation for the additional work performed to meet the ODOT asbestos-content requirements at an appropriate time. Allied also notified United/Uneco that since it was not privy to the contracts between Ruhlin and United/Uneco and did not fully understand the necessity of this letter or the status of those contracts, it had invited Ruhlin to respond if Ruhlin had any further questions or wished to discuss the matter in further detail.

On June 18, 1992, United/Uneco wrote a letter to Allied demanding that it clarify to Ruhlin its reservation for further compensation, insisting that Allied assure Ruhlin that any reservation Allied maintained was against United/Uneco, and not against Ruhlin, since no contract existed between Allied and Ruhlin.

Ruhlin terminated its contracts with United/Uneco in May 1992, asserting as the primary reasons United/Uneco’s failure to satisfactorily assure Ruhlin of their ability to supply dirt as contractually required, and their refusal to obtain an additional surety bond. Ruhlin informed United/Uneco that its decision was based on information of United/Uneco’s unstable financial position and alleged labor difficulties.

In September 1992, Allied filed its complaint against United/Uneco, Ruhlin, and St. Paul. United/Uneco filed claims against Allied, Ruhlin, and St. Paul. The case went to trial and the trial court granted Ruhlin’s motion for a directed verdict as to all of Allied’s claims against Ruhlin. It also granted United/Uneco’s motion for a directed verdict against Allied as to the issues of unpaid damages in the amount of $8,204 and extra work in the amount of $153,116. After the trial court granted Ruhlin a directed verdict as to Allied’s claims, United/Uneco settled its claim with Ruhlin. The trial proceeded on Allied’s remaining claims against United/Uneco on the issues of lost profits of $28,583 and disposal costs of $320,263 and on United/Uneco’s claims against Allied for breach of contract and lost profits. The jury found in Allied’s favor and awarded it $69,575. The trial court entered judgment on March 5, 1998.

Allied filed a motion to mold the verdict for prejudgment interest on its award. It also filed a motion to correct the judgment regarding an alleged stipulation that Ruhlin/St. Paul would pay either Allied or United/Uneco a $3,204 contract *141 balance depending on who the jury determined was owed the money. Before the trial court ruled on Allied’s motions, Allied filed its first notice of appeal (case No. 98-CA-77). Given the pending appeal, the trial court ruled that Allied’s motion to mold the verdict was moot. Upon Allied’s request, this court granted a limited remand to the trial court to rule on the motion to mold the verdict and the motion to correct the judgment.

The magistrate heard arguments on the motions, which he overruled. Allied filed objections to the magistrate’s decision. The trial court subsequently overruled the objections and adopted the magistrate’s decision as its own. Following this decision, Allied filed its second notice of appeal (case No. 99-CA-150). Subsequently, this court combined Allied’s two appeals.

United/Uneco also filed a notice of cross-appeal from the trial court’s March 5, 1998 judgment entry. However, all collection proceedings against United/Uneco have been automatically stayed due to the fact that they have filed for Chapter 7 bankruptcy.

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Cite This Page — Counsel Stack

Bluebook (online)
765 N.E.2d 420, 146 Ohio App. 3d 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-erecting-dismantling-co-v-uneco-realty-co-ohioctapp-2001.