C.a. Carey Corporation, V. City Of Snoqualmie

Court of Appeals of Washington·Decided April 22, 2024·No. 84602-7·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

C.A. CAREY CORPORATION, a Washington corporation, No. 84602-7-I

Appellant, DIVISION ONE

v. ORDER GRANTING MOTION TO PUBLISH

CITY OF SNOQUALMIE, a Washington municipal corporation,

Respondent.

Amicus curiae, Washington State Association of Municipal Attorneys, and non-party, Stoel Rives LLP, each filed a motion to publish on March 12, 2024. A panel of the court called for an answer to the motions on March 21, 2024. Respondent, City of Snoqualmie, filed an answer on April 5, 2024. After review of the motions and answer, a panel of this court has determined that the motions to publish should be granted.

Now, therefore, it is hereby ORDERED that the motions to publish are granted.

FOR THE COURT:

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

C.A. CAREY CORPORATION, a Washington corporation, No. 84602-7-I

Appellant, DIVISION ONE v. UNPUBLISHED OPINION

CITY OF SNOQUALMIE, a Washington municipal corporation,

Respondent.

HAZELRIGG, A.C.J. — C.A. Carey Corporation appeals from the trial court’s grant of the City of Snoqualmie’s motion for summary judgment dismissal of its claims against the municipality based on a public works contract. Because there is no issue of material fact as to the contractor’s lack of compliance with the mandatory notice, protest, and claim provisions of standard specifications expressly incorporated into the contract, its causes of action are barred as a matter of law. We affirm.

FACTS

In February 2014, the City of Snoqualmie advertised construction bids for the public works contract of the “Town Center Infrastructure Improvements Phase 2A Project” (project). The project involved improvements to downtown Snoqualmie, including installation of a new water main, storm drainage system,

undergrounding of power, cable, and phone lines, and roadway paving. Following the public bidding process, the contract was awarded to C.A. Carey Corporation (Carey) on April 28, 2014 as the lowest responsive, responsible bidder. On May 12, 2014, the City and Carey entered into a public works agreement (contract) for the project. Pursuant to the contract, Carey was obligated to “achieve substantial completion of all [w]ork required by the [c]ontract [d]ocuments[1] within 180 working days” for the principal sum of $4,282,653.42.

The contract incorporated the 2012 Washington State Department of Transportation (WSDOT) publication “Standard Specifications for Road, Bridge, and Municipal Construction” (standard specifications). The standard specifications are uniform requirements for public works agreements that provided the general terms of the contract between the City as the contracting agency and the contractor, Carey. Among the requirements are mandatory notice and claim procedures that govern the specific process that must be followed when a contractor seeks additional time or payment on a project.

On May 12, 2017, Carey filed a complaint against the City for breach of contract, breach of the implied covenant of good faith and fair dealing, and breach of implied warranty of design. In its breach of contract claim, Carey alleged that the City failed to acknowledge known defects in the project design, failed to pay for the increased costs of construction, and failed to award additional contract time Carey said became necessary due to numerous design changes. On June 26, the

1 The contract provided that “Contract Documents” included, among other things, contract plans and standard specifications, as well as amendments to the standard specifications.

City filed its answer to the complaint and a counterclaim that asserted Carey had breached the contract by “failing to timely and/or properly perform its work.”

On September 27, 2019, both parties moved for summary judgment. A hearing on the motions took place on October 25 and the trial court heard argument from counsel for the City and Carey. Carey conceded that all three causes of action in its complaint arose from the contract and thus would rise and fall together. On November 4, the judge entered a written order that granted the City’s motion for summary judgment and dismissed each of Carey’s claims. The trial court concluded that Carey had waived the right to pursue its claims because it failed to comply with the standard specifications, particularly the mandatory notice, protest, and claim provisions in sections 1-04.5 and 1-09.11 of the standard specifications. Because the requirements of those provisions are “conditions precedent to litigation,” the trial court concluded that dismissal of Carey’s complaint was required.

On November 13, Carey moved for reconsideration pursuant to CR 59(7)

and (9) and requested that the trial court vacate its summary judgment order. The following day, Carey submitted an amended motion for reconsideration. In support of its motion, Carey included additional evidence in the form of numerous exhibits attached to a declaration. On December 3, the judge denied reconsideration. In the written order, the court explained that it did not consider the supplemental exhibits submitted with the motion because Carey offered “no grounds to support consideration of additional evidence” as required by CR 59(a)(4).

Carey timely appealed.

ANALYSIS

I. Summary Judgment Dismissal Carey assigns error to the trial court’s order granting the City’s motion for summary judgment dismissal. According to Carey, the court erred by applying a strict compliance standard to determine whether Carey adhered to the standard specifications, improperly interpreting the claim limitation and final contract voucher certification provisions, and “enforcing strict contractual notice and claim requirements against Carey” when “the City was the first party to breach.”

“On appeal of summary judgment, the standard of review is de novo, and the appellate court performs the same inquiry as the trial court.” Lybbert v. Grant County, 141 Wn.2d 29, 34, 1 P.3d 1124 (2000). “The court must consider all facts submitted and all reasonable inferences from the facts in the light most favorable to the nonmoving party.” Weyerhaeuser Co. v. Aetna Cas. & Sur. Co., 123 Wn.2d 891, 897, 874 P.2d 142 (1994). “A court may grant summary judgment if the pleadings, affidavits, and depositions establish that there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Lybbert, 141 Wn.2d at 34; see also CR 56(c). “A genuine issue of material fact exists where reasonable minds could differ on the facts controlling the outcome of the litigation.” Ranger Ins. Co. v. Pierce County, 164 Wn.2d 545, 552, 192 P.3d 886 (2008). “However, bare assertions that a genuine material issue exists will not defeat a summary judgment motion.” Trimble v. Wash. State Univ., 140 Wn.2d 88, 93, 993 P.2d 259 (2000).

“The ‘touchstone of contract interpretation is the parties’ intent.’” GMAC v.

Everett Chevrolet, Inc., 179 Wn. App. 126, 134, 317 P.3d 1074 (2014) (internal quotation marks omitted) (quoting Realm, Inc. v. City of Olympia, 168 Wn. App. 1, 4-5, 277 P.3d 679 (2012)). “Washington courts follow the objective manifestation theory of contracts, imputing an intention corresponding to the reasonable meaning of the words used.” Realm, 168 Wn. App. at 5. “Contract interpretation is a question of law when, as here, the interpretation does not depend on the use of extrinsic evidence.” Id. When the contract is unambiguous, “summary judgment is proper even if the parties dispute the legal effect of a certain provision.” Voorde Poorte v. Evans, 66 Wn. App. 358, 362, 832 P.2d 105 (1992).

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