Associated Maintenance & Roofing Co. v. Rockwell International Corp.

643 N.E.2d 555, 95 Ohio App. 3d 638, 1993 Ohio App. LEXIS 3032
CourtOhio Court of Appeals
DecidedJune 9, 1993
DocketNo. 6-92-13.
StatusPublished

This text of 643 N.E.2d 555 (Associated Maintenance & Roofing Co. v. Rockwell International Corp.) 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
Associated Maintenance & Roofing Co. v. Rockwell International Corp., 643 N.E.2d 555, 95 Ohio App. 3d 638, 1993 Ohio App. LEXIS 3032 (Ohio Ct. App. 1993).

Opinion

Hadley, Judge.

This is an appeal by defendant-appellant, Rockwell International Corporation (“Rockwell”), from the judgment of the Common Pleas Court of Hardin County in favor of plaintiff-appellee, Associated Maintenance and Roofing Company, Incorporated (“Associated”).

In late winter of 1984, Rockwell held a pre-bid conference for the removal of the existing roof and the construction of a new roof for its Kenton, Hardin County, Ohio axle manufacturing facility (“plant”). Associated, along with other contractors, attended the pre-bid conference. At the pre-bid conference, the contractors received Rockwell’s written specifications for the project and walked the roof of the plant.

After reviewing all the bids, Associated was determined to be the successful bidder and was awarded a $1,500,000 plus contract. However, Associated was unable to obtain a performance bond for the entire amount of the contract. Rockwell and Associated then agreed to cancel the original contract and split it up into eighteen mini-contracts not to exceed Associated’s bonding limit of $100,000 per contract, and to reduce the overall contract price by $90,000.

*640 All eighteen mini-contracts stated:

“1. Statement of the/ work.

“A. Builder shall perform the following, which shall collectively hereafter be referred to as the “work’: Provide the necessary labor, material, tools, equipment and supervision for the total removal and recovery of the existing roof system at Rockwell International facility at Kenton, Ohio per attachment No. 1 dated September 28,1984, attachment No. 2 dated May 1,1980, attachment No. 3 dated September 28, 1984, attachment No. 4 dated February 14, 1984, and drawing entitled ‘Existing Roof Plan’, dated 6/77, as attached hereto and made a part hereof.

ííjg * * *

“C. Rockwell shall pay to Builder for the performance of the work and all of the Builder’s obligations hereunder a fixed price of $_, which price shall constitute total compensation to be paid to Builder for all of its undertakings hereunder * * * plus $1.08 /sq. ft. Metal Decking as approved by Rockwell.

“2. Changes.

“A. Builder and Rockwell may at any time, without notice to or consent of any sureties, by written change agreement hereto, make changes in the Work or otherwise amend this contract.

“B. Notwithstanding the foregoing, Rockwell may at any time, by written change notice to Builder, * * * make changes on or additions to the specifications, require additional work or services or direct the omission of work or services covered by this contract. * * * Builder shall make no additions, changes, alterations or omissions except upon written order of Rockwell given, as provided herein, before the work in which such addition, change, alteration or omission is involved is done or any services are rendered.

“C. No change agreement or change notice to this contract shall be binding on either Builder or Rockwell unless in writing signed by Rockwell’s Vice President-Purchasing, Director-Procurement Management, Division Director-Material, or Manager-Material and for Builder- by Jim or Ed Caudill.”

Associated proceeded to remove the existing roof and build the new roof according to the contracts and the attachments. During the course of the project, Rockwell and Associated agreed in writing to certain contract changes regarding the amount of metal decking and drains. Rockwell, also by written change order, had Associated perform additional work beyond the contracts. Rockwell then paid Associated for all the additional work required by the change notices.

During the course of removing the existing roof and building the new roof, Associated had to purchase more material than it had considered when bidding the project. After completion of the entire project, Associated submitted additional invoices to Rockwell for the additional material and labor totalling $351,- *641 132.59. Rockwell refused to pay these additional invoices, as the contracts were for a fixed price and/or no written change notice had been issued and approved by the appropriate personnel of Rockwell or Associated.

Associated then filed a complaint in the Common Pleas Court of Hardin County against Rockwell. Associated, in its complaint, alleges in Count I that Rockwell unilaterally changed the contract and damaged Associated in the amount of $90,480; Count II that Rockwell required Associated to do substantial other work beyond that required by the contract in the amount of $351,132.59, and Rockwell has not paid Associated for the extra-contractual work; and Count III that Rockwell’s failure to make timely payments under the contract damaged Associated in the amount of $150,000.

Rockwell timely filed its answer and counterclaimed against Associated for breach of contract. Rockwell then filed a third-party complaint against Hamilton Insurance Company (“Hamilton”) as surety on eleven performance bonds. Rockwell amended its third-party complaint to add Old Republic Insurance Company (“Republic”) as surety on four performance bonds. Rockwell also amended its counterclaim to add breach of express and implied warranties and negligence.

A jury trial then commenced on April 28, 1992. After Associated’s case-in-chief, the trial court granted Rockwell’s motion for directed verdict on Counts I and III of Associated’s complaint. The trial court held that there was sufficient evidence for Count II to go to the jury. After the close of all the evidence, the jury returned a verdict in favor of Associated in the amount of $358,491.37. The jury also found in favor of Associated, Hamilton and Republic on Rockwell’s counterclaim. Rockwell timely filed its motion for judgment notwithstanding the verdict or for a new trial. The trial court overruled Rockwell’s motion. Rockwell now appeals only from the judgment in favor of Associated and asserts the following four assignments of error:

Assignment of Error No. 1

“It was error to overrule Rockwell’s motions for directed verdict and judgment notwithstanding the verdict where the work claimed by Associated as extra was clearly and unambiguously required by the existing contracts between the parties.”

Assignment of Error No. II

“It was error to overrule Rockwell’s motion for directed verdict and judgment notwithstanding the verdict, even if the alleged extra work was not required by the written contracts, where there was no evidence that such work had been approved in advance by a written change order signed by an authorized Rockwell officer and no evidence upon which reasonable minds could conclude that there *642 was no reasonable doubt [sic ] that Rockwell had waived its right to approve the work by written change order.”

Assignment of Error No. Ill

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Bluebook (online)
643 N.E.2d 555, 95 Ohio App. 3d 638, 1993 Ohio App. LEXIS 3032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-maintenance-roofing-co-v-rockwell-international-corp-ohioctapp-1993.