Central Ceilings, Inc. v. Suffolk Construction Co., Inc.

CourtMassachusetts Appeals Court
DecidedMarch 29, 2017
DocketAC 15-P-1117
StatusPublished

This text of Central Ceilings, Inc. v. Suffolk Construction Co., Inc. (Central Ceilings, Inc. v. Suffolk Construction Co., Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Ceilings, Inc. v. Suffolk Construction Co., Inc., (Mass. Ct. App. 2017).

Opinion

NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557- 1030; SJCReporter@sjc.state.ma.us

15-P-1117 Appeals Court

CENTRAL CEILINGS, INC. vs. SUFFOLK CONSTRUCTION COMPANY, INC. & others.1

No. 15-P-1117.

Suffolk. October 7, 2016. - March 29, 2017.

Present: Agnes, Maldonado, & Desmond, JJ.

Contract, Construction contract, Subcontractor, Damages. Damages, Breach of contract, Attorney's fees. Practice, Civil, Attorney's fees, Discovery.

Civil action commenced in the Superior Court Department on October 3, 2006.

The case was heard by S. Jane Haggerty, J.; an award of attorney's fees was entered by her; and a motion for reconsideration was considered by Judith Fabricant, J.

Joel Lewin (John P. Connelly also present) for the defendants. Paul R. Mordarski (Thomas J. Fullam also present) for the plaintiff.

DESMOND, J. After a jury-waived trial, a Superior Court

judge entered judgment awarding the plaintiff, Central Ceilings,

1 Fidelity and Deposit Company of Maryland, Safeco Insurance Company of America, and XL Specialty Insurance Company. 2

Inc. (Central), $321,315 on its breach of contract claim for

damages for loss of productivity incurred while acting as a

subcontractor for defendant Suffolk Construction Company, Inc.

(Suffolk), on a large construction project. This case is before

us on cross appeals.

Suffolk challenges the judgment,2 claiming, inter alia, that

Central's claim was barred by the "no-damages-for-delay" clause

in the subcontract between the parties, and that the judge erred

in ruling that Central had established its claim for damages by

the "total cost" method. Suffolk further challenges the judge's

award of $471,682 in attorney's fees to Central, claiming that

it was wrongfully denied discovery and a hearing prior to the

entry of that award.

On its cross appeal, Central challenges the judge's holding

that the "pay-if-paid" clause in the subcontract barred it from

recovering $82,538 from Suffolk for unpaid change order requests

(CORs). For the reasons set forth herein, the judgment on the

merits entered on December 20, 2013, and the amended judgment

for attorney's fees entered on September 9, 2014, are affirmed.

1. Background. First, we set forth the basic material

facts, drawing extensively from the trial judge's thoughtful and

2 While this appeal is brought on behalf of all defendants, other than Suffolk, the defendants are sureties and not principal actors in the underlying events. 3

thorough findings of fact, rulings of law, and decision. The

Massachusetts State College Building Authority (MSCBA) hired

Suffolk to serve as general contractor on the construction of

three interconnected dormitories at what is now known as

Westfield State University (the project). As the dormitories

were to be ready for occupancy by students arriving for the fall

semester in 2005, the contract between the MSCBA and Suffolk

(the general contract) provided for a substantial completion

date of July 1, 2005. As an incentive for Suffolk to finish on

time, the general contract further provided that Suffolk could

either earn a $200,000 bonus for completing the project on time

or pay significant liquidated damages if it was not.3

Central submitted a bid to serve as the subcontractor for

installing, among other things, the exterior heavy metal gauge

framing and sheathing, interior light gauge framing, drywall,

and hollow metal door frames. Critical to Central's estimate

and ability to timely complete its work was the "flow" of the

project, with each aspect of its work following in sequence,

floor by floor, exterior to interior, building by building.

3 The liquidated damages clause provided for payment of $30,000 for each week beyond July 15, 2005, up to September 2, 2005; $25,000 per additional day from September 3, 2005 to October 2, 2005; and a $810,000 lump sum payment for failure to complete the project by October 3, 2005. 4

Suffolk accepted Central's bid, and the parties entered into a

subcontract in the original amount of $3,606,476.

From the outset, however, the project was plagued by

problems as Suffolk failed to carry out many of its obligations,

including: failing to coordinate the work of other "trades,"

such as the steel erector and window installer, whose work

necessarily had to be completed before Central could complete

its own; failing to establish proper elevation, column, and

control lines, from which Central worked to construct the

building in accordance with the plans; failing to provide for

the timely and properly coordinated delivery of the hollow metal

door frames to be installed by Central; and failing to ensure

that the buildings were weather-tight and properly heated, both

of which were essential to Central's ability to, among other

things, carry out the temperature-sensitive tasks related to the

installation of the gypsum wall board.4

As Central encountered each obstacle and awaited

resolution, its workers, who had taken their tools and the

4 In addition, due to design defects, over 500 "requests for information" (RFIs) were submitted to the architect over the life of the project, with over 200 from Central alone. An RFI is generated when a contractor or subcontractor encounters an issue that is either inconsistent with, or not clearly addressed by, the plans. The RFI seeks clarification and/or direction from the architect, who responds with a "supplemental information" (ASI) and often a sketch. The architect issued over 200 ASIs on the project. The volume of RFIs and ASIs was not only unusual for a project of this size, but of any size. 5

necessary supplies and mobilized in a specific area to carry out

a specific task, were repeatedly forced to break down and

remobilize to a different area to carry out a different task.

Then, once the obstacle had been overcome, Central's workers

would have to do a "go back," remobilizing and completing the

original task. Meanwhile, Central's project manager and other

supervisory personnel were forced to spend an inordinate amount

of time coordinating all of the changes and filling out related

paperwork. The problems also resulted in Central's workers

being forced to work in the same space and at the same time as

other subcontractors, an inefficient situation commonly referred

to in the industry as the "stacking of trades."

Given the substantial completion date, and the financial

incentives and disincentives related thereto, Suffolk advised

Central that no time extensions would be granted on the project.

As a result, while the start dates for various aspects of

Central's subcontract work were consistently pushed back due to

the myriad of issues caused by Suffolk's breaches, the

completion dates remained the same and the time within which

Central had to perform was constantly "compressed." When

Central complained, Suffolk told it to simply assign additional

manpower to keep the project on track, which is what Central was

forced to do.

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