Blake Construction Co. v. Upper Occoquan Sewage Authority

587 S.E.2d 711, 266 Va. 564, 2003 Va. LEXIS 108
CourtSupreme Court of Virginia
DecidedOctober 31, 2003
DocketRecord 022075
StatusPublished
Cited by18 cases

This text of 587 S.E.2d 711 (Blake Construction Co. v. Upper Occoquan Sewage Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blake Construction Co. v. Upper Occoquan Sewage Authority, 587 S.E.2d 711, 266 Va. 564, 2003 Va. LEXIS 108 (Va. 2003).

Opinion

JUSTICE AGEE

delivered the opinion of the Court.

Blake Construction Co., Inc./Poole & Kent (“the Joint Venture”) appeals orders by the Circuit Court of Fairfax County entered in proceedings brought by the Joint Venture against the Upper Occoquan Sewage Authority (“UOSA”).

On appeal, the Joint Venture assigns as error the trial court’s sustaining of UOSA’s demurrer to Count I of the Joint Venture’s amended motion for judgment and declaratory judgment which alleged that certain provisions of a contract between the parties were unenforceable and void as against public policy under Code § 2.2-4335(A). The Joint Venture also assigns as error the trial court’s dismissal of a claim for damages on the grounds that the Joint Venture failed to give a timely notice of claim, and alternatively on the basis of the jury’s special verdict finding. For the reasons that follow, we will affirm in part and reverse in part the judgment of the trial court.

I. BACKGROUND

This litigation involves multiple disputes arising out of a contract for construction of a waste water treatment facility located in Fairfax County (the “Project”). UOSA, the owner of the facility, is a public *569 authority created pursuant to the Virginia Waste and Water Authorities Act, Code §§ 15.2-5100 through -5158, to provide waste water reclamation for its member jurisdictions, the counties of Fairfax and Prince William and the cities of Manassas and Manassas Park. As a public authority, UOSA is subject to the Virginia Public Procurement Act, Code §§ 2.2-4300 through -4377 1 (the “VPPA”).

Blake Construction Co., Inc. and Poole & Kent Corporation formed the Joint Venture in order to submit a bid for the Project. The Joint Venture’s bid was successful, and the Joint Venture agreed to furnish all labor, materials, and equipment for the Project in a contract dated December 10, 1996 (the “Contract”). The Contract allows the Joint Venture to obtain an increase in the contract price and/or an extension of time to complete certain work upon written application to UOSA pursuant to procedures set forth in the Contract.

The Joint Venture began work on the Project in January 1997 which is ongoing at the time of this appeal. During the course of the work, numerous changes were made to the original contract, some of which are in dispute and resulted in the proceedings now at bar.

The VPPA allows a contractor on a public project to appeal an adverse final decision by a public owner on its claim. See Code § 2.2-4363. Under the statute, a contractor may obtain a de novo determination of its claim in the circuit court provided it institutes legal action “within six months of the date of the final decision on the claim by the public body.” Code § 2.2-4363(D). As the Project remains ongoing, this has engendered litigation by the parties during the construction process. On May 26, 2000, the Joint Venture filed the first of several related suits appealing adverse claim decisions by UOSA and subsequently filed additional suits. The trial court consolidated six of those suits (the “consolidated cases”) by order, including the matters now at bar.

In addition to contesting specific claims for particular items, the Joint Venture also sought a declaratory judgment that certain Contract provisions, General Conditions 91.K and 91.L, were prohibited by Code § 2.2-4335(A) and therefore void as against public policy. UOSA filed a demurrer which the trial court sustained by letter opinion dated July 11, 2001, but with leave to amend. The Joint Venture filed an Amended Motion for Judgment and Declaratory Judgment to *570 which UOSA filed another demurrer. The trial court again sustained UOSA’s demurrer in reliance on the July 11, 2001 letter opinion, but without further leave to amend.

UOSA filed a Plea in Bar to approximately 60 of the specific work claims pled by the Joint Venture, asserting failures to comply in a timely manner with various notice requirements. 2 Some of the bars raised by the Plea in Bar were tried to a jury in September 2001, including the dispute over Work Order 248 which is at issue in this appeal. UOSA issued Work Order 248, which removed specific work from the Project, on April 12, 2000. Subsequently, on September 12, 2000, UOSA issued Unilateral Change Order No. 100 (“UCO 100”) which reduced the Contract price to reflect the elimination of work under Work Order 248. UOSA alleged the Joint Venture failed to file a Notice of Claim until October 2, 2000, over four months after UOSA asserts it was due and therefore no claim arising from Work Order 248 could be made by the Joint Venture.

Both parties submitted proposed verdict forms at the close of trial. The trial court substantially adopted UOSA’s proposed form rather than the form proffered by the Joint Venture. After the jury issued its verdict, the Joint Venture moved to set aside the verdict regarding Work Order 248 on the grounds that General Condition 104 of the Contract did not require a Notice of Claim for a reduction in the Contract price. The trial court denied the motion by order dated November 30, 2001.

The Joint Venture moved for entry of an order of voluntary non-suit in the consolidated cases, which the trial court granted on June 7, 2002. The Joint Venture has appealed the matters dismissed with prejudice by the trial court prior to the order of nonsuit: the jury verdict on Work Order 248 and sustaining of the demurrer to its declaratory judgment action. We granted the Joint Venture an appeal.

fl. STANDARD OF REVIEW

Well-settled principles of appellate review guide our analysis when error is assigned to the sustaining of a demurrer.

A demurrer admits the truth of the facts contained in the pleading to which it is addressed, as well as any facts that may be reasonably and fairly implied and inferred from those alle *571 gations .... A demurrer does not, however, admit the correctness of the pleader’s conclusions of law.

Yuzefovsky v. St. John’s Wood Apts., 261 Va. 97, 102, 540 S.E.2d 134, 136-37 (2001) (internal citation omitted). Therefore, we consider the facts stated in the motion for declaratory judgment, and those reasonably implied and inferred, in a light favorable to the Joint Venture, the party against whom the demurrer was filed. We consider de novo, however, the sufficiency of the trial court’s legal conclusions made as to those facts.

We will uphold the judgment of the trial court unless it appears from the evidence that the judgment is plainly wrong or without evidence to support it. Code § 8.01-680; Nationwide Mut. Ins. Co. v. St. John, 259 Va. 71, 76, 524 S.E.2d 649, 651 (2000) (citing RF&P Corporation v. Little, 247 Va. 309, 319, 440 S.E.2d 908, 915 (1994)).

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Bluebook (online)
587 S.E.2d 711, 266 Va. 564, 2003 Va. LEXIS 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blake-construction-co-v-upper-occoquan-sewage-authority-va-2003.