Bangert Bros. Construction Co. v. Kiewit Western Co.

310 F.3d 1278, 2002 U.S. App. LEXIS 23497, 2002 WL 31516188
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 13, 2002
Docket00-1024, 00-1029, 00-1036
StatusPublished
Cited by32 cases

This text of 310 F.3d 1278 (Bangert Bros. Construction Co. v. Kiewit Western Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bangert Bros. Construction Co. v. Kiewit Western Co., 310 F.3d 1278, 2002 U.S. App. LEXIS 23497, 2002 WL 31516188 (10th Cir. 2002).

Opinion

BRISCOE, Circuit Judge.

Three related appeals are at issue. In the first appeal, defendant Empire Laboratories, Inc., appeals the district court’s partial grant of judgment as a matter of law in favor of plaintiff CSI Trucking, Inc., on its fraudulent misrepresentation claim, as well as the district court’s entry of judgment, after trial, in favor of CSI on that same claim. In the second appeal, defendant Meridian Aggregates Company appeals the district court’s entry of judg.ment, after trial, in favor of plaintiff Ban- *1283 gert Brothers Construction Company, Inc., on its breach of warranty and negligence claims. In the third appeal, Bangert challenges the district court’s calculation of prejudgment interest on its damage award against Meridian, and appeals the district court’s entry of judgment in favor of Meridian on its counterclaim for quantum me-ruit. We exercise jurisdiction pursuant to 28 U.S.C. § 1291, affirm in part, reverse in part, and remand for further proceedings consistent with this order.

I.

These appeals, and the underlying case, arise out of the construction of Runway 17L-35R at the Denver International Airport. In the summer of 1991, the City and County of Denver solicited bids for construction of the runway (otherwise known as Project F-111B). Plaintiff Bangert, a Missouri corporation with its principal place of business in St. Louis, was the winning bidder and general contractor on the project. As outlined in its bid, Ban-gert expected assistance from plaintiff CSI, a minority-owned business incorporated in Minnesota, and defendant Kiewit Western Company, a Delaware corporation with offices in Denver. Bangert anticipated that CSI would purchase and haul many of the raw materials required for paving the runway, and that Kiewit would use those raw materials to provide Ban-gert with “batched” concrete necessary for paving the runway. 1

CSI entered into a contract with defendant Meridian Aggregates Company for the rock and sand for the project. Kiewit contacted various companies, including River Cement Company, about cement for the project. To manufacture or “batch” concrete, a “mix-design” or recipe is used which sets forth the specific types and amounts of component materials. In late 1991, Kiewit developed and tested several different mix-designs for possible use on the project. Some of the proposed mix-designs met the strength requirements imposed on the project by the City, but others did not. In particular, the proposed mix-designs utilizing Heartland cement supplied by River did not meet the strength requirements. However, because River was willing to lease space from Kiewit in a railyard located near the construction site, Kiewit continued to explore and test mix-designs utilizing Heartland cement.

At the urging of Kiewit, CSI entered into an agreement with River for the cement for the project. In April 1992, River began shipping Heartland cement. Shortly thereafter, Kiewit, on behalf of CSI, hired defendant Empire, a Colorado corporation with its principal place of business in Fort Collins, to perform additional mix-design testing. In particular, Kiewit asked Empire to determine whether Kiew-it’s proposed mix-designs utilizing the Heartland cement would satisfy the strength requirements imposed on the project by the City. 2

Empire employee Gary Martinson, with the assistance of two subordinates, per *1284 formed the mix-design testing requested by Kiewit. The testing did not produce the results typically expected from concrete mix-designs. In particular, the strength of the concrete did not increase as the percentage of cement in the mix was increased. Nor did the strength of the concrete increase as expected over time (concrete typically gains strength as it ages and hardens). Because the test results “just made no sense at all” to Martinson, Tr. at 5988, he instructed his subordinates to alter the test data to correspond with what he thought the results should have been. 3 Empire prepared a report and submitted it to CSI and Kiewit. App. at 6177. The report did not mention the actual test results or the alterations made by Martinson and his subordinates. Instead, the report outlined the altered test results and concluded that the mix-designs utilizing the Heartland cement satisfied the project strength requirements and were suitable for use in the project. Copies of the report were sent to Bangert and, in turn, to the City.

Paving operations began on the project in mid-June 1992 and problems arose almost immediately. As a general matter, the concrete “didn’t work very well” and was difficult for Bangert’s paving personnel to handle. Tr. at 508 (testimony of Henry Bangert). By the third day of paving, Bangert began experiencing problems with the field strength tests on the concrete. Id. These low-strength problems continued off and on throughout the summer of 1992. In mid-July 1992, Bangert discovered that some of the concrete panels were contaminated with “clayballs.” Id. at 515. In September 1992, large quantities of concrete failed to “set up properly,” which in turn led to random cracking of the concrete. Id. at 529. In addition, some of the concrete failed to set at all and remained in a “retarded” state similar to gelatin. Id. at 531.

Bangert investigated and attempted to correct these problems. With respect to the low-strength problem, Bangert experimented with the mix-designs, changing the amounts of cement, fly ash, and admixture in an attempt to increase the concrete’s strength. Bangert concluded there was a relationship between the low-strength problem (and the retardation and cracking problems) and the Heartland cement supplied by River. Bangert further discovered that, adding to the problem, River had shipped three different types of cement to the job site and those three types had been intermingled during the concrete batching process. In the fall of 1992, Bangert, with the approval of the City, switched cement suppliers and discontinued using any cement supplied by River.

Bangert attributed the clayball problem to several potential sources. First, Ban-gert concluded there was clay in the sand stockpile. Second, Bangert concluded that at least some of the rock in the rock stockpile was too dirty to use for batching concrete. Third, Bangert believed that muddy conditions at the batch plant site, as a result of wet weather and a rock- *1285 washing operation implemented to counter the dirty rock problem, resulted in loading equipment introducing- clay into the batched concrete.

The concrete problems encountered on the project in the summer of 1992 had significant ramifications. As a result of the low-strength problems, the City deducted $410,000 from its payments to Ban-gert. Id. at 538. In addition, Bangert spent the majority of 1993 replacing and repairing panels of concrete. Id. at 502.

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Bluebook (online)
310 F.3d 1278, 2002 U.S. App. LEXIS 23497, 2002 WL 31516188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bangert-bros-construction-co-v-kiewit-western-co-ca10-2002.