Appeal of Francis R. Orshek Company

119 N.W.2d 48, 174 Neb. 668, 1963 Neb. LEXIS 243
CourtNebraska Supreme Court
DecidedJanuary 11, 1963
Docket35308
StatusPublished
Cited by3 cases

This text of 119 N.W.2d 48 (Appeal of Francis R. Orshek Company) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appeal of Francis R. Orshek Company, 119 N.W.2d 48, 174 Neb. 668, 1963 Neb. LEXIS 243 (Neb. 1963).

Opinion

Messmore, J.

The Francis R. Orshek Company, a corporation, filed a claim with the Department of Roads of the State of Nebraska dated November 15, 1960. This claim was disallowed by the Auditor of Public Accounts and the Secretary of State of the State of Nebraska on Novem- ■ ber 28, 1960. Thereafter the Francis R. Orshek Company prosecuted an appeal to the district court for Lancaster County, as the plaintiff and appellant, and the State of Nebraska, Department of Roads, and public officials involved as defendants and appellees. By agreement of the parties a jury was waived and the cause submitted to the court.

The cause was submitted to the trial court on three specific items: A balance of $3,855.63 admittedly due from the State, but which was being wrongfully withheld because the plaintiff would not execute a release in full; a delay penalty of $2,850 which the State had assessed against the plaintiff; and the sum of $6,843.01 claimed due by the plaintiff, being increased costs arising out of an increase in common carrier rates.

The trial court rendered judgment in favor of the plaintiff and against the State of Nebraska in the sum of $3,855.63 and the sum of $6,843.01 for a total of $10,698.64, together with interest at 6 percent per annum from November 30, 1960, and the remainder of *670 plaintiff’s claim on appeal was denied. Costs were taxed against the State of Nebraska.

The State of Nebraska filed a motion for new trial. The plaintiff also filed a motion for new trial with reference to that part of the judgment which applies to the ruling of the court denying the claim of the plaintiff for $2,850, being the amount of delay penalty withheld by the State, for the reason that the judgment of the court insofar as it applied to the above amount withheld by the State as a penalty for delay was contrary to the law and to the evidence.

The trial court overruled the motion for new trial filed on behalf of the State of Nebraska and also the motion for new trial filed on behalf of the plaintiff. The defendants perfected appeal to this court.

For convenience we will refer to the Francis R. Orshek Company as the plaintiff and to the State of Nebraska, Department of Roads, as the defendant.

The defendant assigned as error that the decision of the trial court is contrary to the evidence and contrary to law.

George Iverson, field superintendent for the plaintiff, testified that he was involved with state project DS-47(10) and was in charge of the work, did the estimating on the job, and supervised the work throughout its construction; that he helped prepare the bids and was present when the bid was submitted; and that he was familiar with all the phases of the work. He further testified that this project consisted of culverts, grading, and paving; that group No. 3 of the contract consisted of paving and miscellaneous work that goes with the paving; that group No. 4 pertained only to culverts; and that the plaintiff bid on groups Nos. 1 and 3, the grading and paving. The contract was based upon certain specifications as to the date of starting and the date of completion. He further testified that the letting was on June 19, 1958, and the completion date was August 15, 1959.

*671 The plaintiff received word from the defendant with reference to a delay in awarding the contract. This was contained in a letter dated July 2, 1958, directed to the plaintiff, and notified the plaintiff that it was the low bidder for grading and paving on project DS-47(10), in the amount of $567,327.80; that delays had occurred in obtaining the right-of-way; and that the purpose of the letter was to request an extension. The letter cited article 3.02 of the 1955 Standard Specifications for Highway Construction, State of Nebraska, hereafter referred to as the specifications, to the effect that the award shall be made within 30 days after the opening of proposals, and requested that this provision be waived. The plaintiff concurred in the waiver. The plaintiff was notified on July 24, 1958, that its bid had been accepted, and the contract was signed on July 29, 1958.

This witness further testified that the first portion of this project would be the culverts, followed by the grading, and then followed by the paving; that the plaintiff started grading on September 18, 1958; that due to the delay in awarding the contract, the work ran into the fall, to a point that the plaintiff was hindered by cold weather which the plaintiff could not contemplate; that the amount of excavation estimated by the State was 359,200 cubic yards, and the actual excavation was 440,078.3 cubic yards; that the total bid on group No. 1 was $66,647; that the final figure for the work done on group’ No. 1 was $80,648, which the parties agreed was the proper amount after the work was completed; and that the grading overrun had an effect upon the time for completion of the grading operations.

This witness further testified that the Nebraska State Railway Commission increased the tariffs on batch hauls in March 1959; that a batch consists of sand, cement, and gravel which is put into a dump truck at a railroad siding or some other place where these various ingredients are available and the trucker hauls that batch from the railroad siding or loading siding to the place where *672 the mixer is run and dumps the batch into the mixer; that the rate for batch hauls in effect when the plaintiff bid on the contract and when the contract was let was 37 cents for the first mile and 7 cents for each additional half mile; that the new rate which went into effect in March 1959, was 42 cents for the first mile and 8% cents for each additional half mile; and that the plaintiff commenced batch hauling on June 23, 1959, after the new rate went into effect.

This witness further testified that he personally made arrangements with the truckers for the transportation of batches, and spent a great deal of time driving around trying to locate truckers; and that he contacted the Nebraska State Railway Commission and was assisted in locating truckers to haul the batches. He obtained a list from the Nebraska State Railway Commission of registered carriers who had certificates of public convenience and necessity over regular and irregular routes. We will hereafter refer to these carriers as RC carriers. He further testified that he personally interviewed and obtained the various truckers.

An exhibit in evidence discloses the amounts paid to the truckers, which was computed on the new Nebraska State Railway Commission rates. The total amount paid these truckers over the old rate was $6,843.01. These truckers were used only on the days the plaintiff was engaged in paving, which was approximately 30 days during the course of the contract. Some of these truckers were RC carriers, others did not have a certificate of public convenience and necessity.

The plaintiff drew up' a lease to make it possible for some of these truckers who did not have a certificate of public convenience and necessity issued by the Nebraska State Railway Commission to avoid arrest for not having such a certificate. There was no lease agreement with the RC carriers. The plaintiff furnished funds to make sure the gasoline bills were paid and that other bills relating to the business of such truckers

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Bluebook (online)
119 N.W.2d 48, 174 Neb. 668, 1963 Neb. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appeal-of-francis-r-orshek-company-neb-1963.