Burly Construction Corp. v. Commonwealth

284 A.2d 841, 4 Pa. Commw. 46, 1971 Pa. Commw. LEXIS 293
CourtCommonwealth Court of Pennsylvania
DecidedDecember 20, 1971
DocketAppeal, No. 218 C.D. 1970
StatusPublished
Cited by5 cases

This text of 284 A.2d 841 (Burly Construction Corp. v. Commonwealth) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burly Construction Corp. v. Commonwealth, 284 A.2d 841, 4 Pa. Commw. 46, 1971 Pa. Commw. LEXIS 293 (Pa. Ct. App. 1971).

Opinion

Opinion by

Judge Mandeeino,

This appeal arises from a contract dispute between the Burly Construction Company and the Department of Property and Supplies, Commonwealth of Pennsylvania. In May of 1967, the Commonwealth of Pennsylvania entered into a construction contract with the Burly Construction Corporation pursuant to which Burly was to construct a concrete gravity dam in Sholoha Palls, Pike County, Pennsylvania.

Subsequent to the signing of the contract, a dispute arose as to whether the contractor was required under the contract to use wood forms rather than steel forms in the construction of the bulk of the concrete dam. Burly did the work using wood forms and filed a claim against the Commonwealth requesting damages because [48]*48additional costs were incurred in the use of wood forms rather than steel forms. The Commonwealth rejected the validity of Burly’s claim. Burly also made a claim for other items under the contract and the Commonwealth also made claims against Burly for certain delays, but none of these other claims are before us. Previous decisions involving these other claims have not been appealed by either Burly or the Commonwealth.

Burly’s claim involving the use of wood forms was heard and a decision entered by the Department of Justice dismissing Burly’s claim. It is this order which Burly now appeals to this Court.

The Commonwealth asks that Burly’s appeal be quashed because it is barred by both his contractural agreement with the Commonwealth and by law. We do not agree and the motion to quash must be denied.

The contract between the parties specifically provided that Burly had the right to appeal from the decision and award of the Department of Justice “. . . as provided by law.” The contract thus refers us to the law of the Commonwealth in order to determine whether Burly had the right to appeal. Under the contract, Burly had such a right if provided by law.

In contending that Burly did not have any right to appeal, the Commonwealth refers to Section 2408 of the Administrative Code of 1929 (Act of April 9, 1929, P. L. 177, 71 P.S. 638(j)). That Section, according to the Commonwealth, prohibits Burly’s appeal because it states that a “. . . decision by the Department of Justice . . . shall be final.” Section 2408 of the Administrative Code of 1929 is, however, no longer the controlling law.

Article V, Section 9, of the New Constitution adopted in April of 1968, provides in part as follows: “. . . there shall ... be a right of appeal . . . from an administrative agency ... to an appellate court, the [49]*49selection of such court to be as provided by law. . ...”

Following the adoption of the Constitutional provision, Section 47 of the Administrative Agency Law was enacted (Act of December 2, 1968, P. L. 354, 71 P.S. §1710.47). That Section provides that “. . . where an act of assembly expressly provides that there shall be no appeal from an adjudication of an agency . . . .any person . . . who has a direct interest in such adjudication may nevertheless appeal the same in the manner provided . . .” by specified procedures. Section 47 of the Administrative Agency Law as amended (Act of December 2, 1968, P. L. 354, 71 P.S. §1710.47). Exclusive jurisdiction of appeals from final orders of state administrative agencies was given to the Commonwealth Court. Section 403 of the Appellate Court Jurisdiction Act (Act of July 31, 1970, P. L. , Act No; 223, 17 P.S. 211.101 et seq. (1970)).

Article V, Section 9, of the New Constitution and the subsequently enacted enabling legislation make it clear that Burly was entitled to appeal the decision of the Department of Justice and the motion to quash must, therefore, be denied.

The Master, appointed by the Attorney General, found that after the signing of the contract a dispute arose concerning the interpretation of the contract. The dispute concerned whether or not under the contract an “F3 finish” was required on some of the concrete work involved in the project.

The Master’s opinion makes it quite clear that the contractor was ordered to provide an “F3 finish” requiring wood forms and that such work was performed by Burly as ordered by the architect-engineer for the Commonwealth on the project; The Master also found that Burly was required to comply with the interpretation given to the contract by the . architect-engineer and use an “F3 finish” on some of the work even though the interpretation of the requirement was under dis[50]*50pute. This is not unusual since it allows work to proceed leaving disputes for later determination. The Master also found ". . . that the contractor did not contemplate the cost of the ‘F3 finish’ as required by the architect-engineer, and consequently the contractor’s bid did not include such costs. . . .”

Unfortunately, the Master did not make any Finding as to whether the contract required an “F3 finish” and this, of course, was the crucial question.

The Master did not determine whether the original contract required an “F3 finish” because he determined that even if it was not required, Burly did not present sufficient evidence as to proper damages and, therefore, there was no need to determine the validity of the claim.

We disagree and conclude that the evidence presented by Burly before the Master was sufficient to sustain Burly’s burden of proof as to damages.

We must, therefore, reverse and remand with instructions that a determination be made as to whether the original contract required the “F3 finish”. If it did not, and if Burly properly pursued its claim, as later discussed, Burly is entitled to recover damages in the amount of $38,956.98.

Burly’s position throughout the dispute has been that the original contract only required the use of steel forms and the order to use wood forms in order to provide an “F3 finish” involved additional costs not contemplated. The Master’s findings sustained Burly in this contention. In order to prove its damages, Burly at the hearing introduced a "calculation of amount of form claims.” Burly computed on a square foot unit cost the estimated cost of using steel forms as the contract provided (but which were never actually used because of the order of the architect-engineer) and subtracted the estimated cost of using steel forms from the estimated cost of using wood forms similarly cal[51]*51culated. Burly then calculated the total amount of applicable square feet involved in the form work which was 29,313 square feet and multiplied the square footage by the increased difference in unit cost between wood forms and steel forms. Burly’s submission, showing a breakdown of unit cost per square foot between steel forms and wood forms, showed a breakdown involving labor, material, equipment, insurance, fringes, taxes on labor, overhead, and a ten percent profit item.

The Commonwealth presented no evidence at the hearing to dispute the accuracy of Burly’s calculations as to damages. There was no evidence that the 29,313 square feet involved in the use of wood forms was not correct. There was no evidence presented by the Commonwealth to contradict Burly’s calculations concerning the relative cost of using steel forms versus wood forms. There was no evidence presented by the Commonwealth that the unit cost per square foot of steel forms versus wood forms was in error as to any particular item detailed by Burly on its “calculation of amount of form claims.”

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Cite This Page — Counsel Stack

Bluebook (online)
284 A.2d 841, 4 Pa. Commw. 46, 1971 Pa. Commw. LEXIS 293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burly-construction-corp-v-commonwealth-pacommwct-1971.