City of Cincinnati, Ohio v. Dorr-Oliver, Inc.

659 F. Supp. 259
CourtDistrict Court, D. Connecticut
DecidedMay 1, 1986
DocketCiv. B 84-431 (TFGD)
StatusPublished
Cited by15 cases

This text of 659 F. Supp. 259 (City of Cincinnati, Ohio v. Dorr-Oliver, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Cincinnati, Ohio v. Dorr-Oliver, Inc., 659 F. Supp. 259 (D. Conn. 1986).

Opinion

DALY, Chief Judge.

After review and over objection, the ruling of the Magistrate is hereby ADOPTED, APPROVED and RATIFIED. Summary judgment will therefore enter on Counts One, Two, Three and Five. Partial summary judgment shall enter on Count Four in accordance with the Magistrate’s ruling.

RULING ON DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

THOMAS P. SMITH, United States Magistrate.

I.

This is an action sounding in contract and tort requiring a construction of the applica *260 ble statutes of limitations, Conn.Gen.Stat. § 42a-2-725 and § 52-577. Various theories of liability are advanced in the five count complaint. Before the court is the defendant’s motion for summary judgment, Rule 56, F.R.Civ.P., on four of these counts and for partial summary judgment on the remaining count. Jurisdiction is predicated on 28 U.S.C. § 1332, venue upon § 1391. For the reasons set out below, the defendant’s motion should be granted.

II.

The facts applicable to the resolution of the pending motion are easily recounted. The plaintiff buyer and the defendant seller entered into a contract (Contract 21B) on September 22, 1972, for the purchase of 16 centrifuges for the thickening of excess activated sludge at the plaintiff’s Mill Creek Wastewater Treatment Plant. These centrifuges were delivered to the plaintiff on July 22, 1974. Degritters, also purchased pursuant to Contract 21B, were delivered on that date as well. 1

The contract provided for three levels of testing for the equipment. There was to be, first, a shop test for each of the 16 centrifuges to be delivered. The completely assembled centrifuge was to be tested at the defendant’s manufacturing plant and was to be witnessed by a Registered Professional Engineer. The defendant was to then forward a description of the shop test to the plaintiff on areas such as vibration analyses. No centrifuge was to be shipped to the plaintiff until the witnessing engineer had approved the shop test reports. The second test was to be a simulated performance test. Described in the contract as a Witnessed Test, it was to be performed at a wastewater treatment plant of the defendant’s choice, subject to the plaintiff’s approval, that utilized the activated sludge process to treat municipal sewage. Excess activated sludge produced at this testing site was to be used in the test, which was to run for twelve hours. The test was to be conducted on only one centrifuge, with results relating to sludge concentration and the like being reviewed by the plaintiff. If the equipment failed initially, the test could be performed again. If the equipment failed a third time, the plaintiff had the option of cancelling the contract, with no costs being charged to it, or the plaintiff could accept the equipment contingent upon the results of the third level of testing, the Acceptance Test. Unlike the first two tests, the Acceptance Test was to be performed both after all the equipment was installed and operating at the Mill Creek site for at least four weeks and after the parties mutually agreed that the equipment was in suitable condition for continuous operation. Each centrifuge was to be tested to determine compliance with the specification requirements and guaranteed performance. If the equipment failed after three tries, (1) the defendant could be allowed additional time to replace or modify the equipment, (2) the equipment could be accepted at a reduced price, (3) the money paid to the defendant could be returned to the plaintiff, with the plaintiff paying for its use of the equipment, or (4) acceptance could be conditioned upon additional provisions negotiated by the parties.

The equipment passed the first tests, the Shop Tests, but failed the Witnessed Tests at the Hazleton Sewage Treatment Plant and again at Cleveland Southerly Wastewater Treatment Plant in Cleveland, Ohio. The plaintiff in May 1974 then “waived the requirement of a further witnessed test and allowed the equipment to be shipped, subject to satisfactory completion of the acceptance test provided for by the contract after installation at the Mill Creek Plant.” Plaintiff’s Memo in Opposition to Defendant’s Motion for Summary Judgment, Filing No. 94, at 10.

The defendant agreed to a preliminary test run in February 1977 to determine whether the centrifuges could operate successfully without the complementing screens. They could not. The defendant then offered to provide the screens at its own expense, with installation costs falling to the plaintiff. The screens were delivered on April 26, 1978. Following the installation of the screens, in July 1980, the *261 Acceptance Tests were begun. Reports of the tests circulated for some time, a delay caused partially by the installation of parts into the Unit 1 centrifuge, and on November 5, 1981, the plaintiff declared that the defendant’s contractual obligations had been fulfilled and released the defendant’s performance bond.

Problems with the equipment continued subsequent to the acceptance and ultimately the equipment was shut down in 1982. The defendant proposed a solution to the problems encountered by the plaintiff, but that proposal was rejected in 1983 and this litigation then ensued on June 29, 1984.

Contract 21B provided two types of express warranties or guarantees. There were, first, various performance guarantees on which the acceptance was conditioned. For example, Section 1.4 of Contract 21-B’s specifications provided that the centrifuges “shall be suitable for continuous, heavy duty, 24 hour per day service, when processing excess activated sludge,” and that the centrifuge equipment shall be capable of concentrating the activated sludge to a minimum specified solids concentration and of capturing a minimum percentage of the solids in the thickened sludge. Second, Section 1.14 of Contract 21-B provided a guarantee “against defects in workmanship and material for a period of eighteen (18) months from the date of acceptance.”

III.

The Contract Counts

The plaintiff has alleged in its complaint four causes of action sounding in contract. A breach of contract of sale is alleged in count one, a breach of express warranties relating to specific standards of performance in count two, a breach of implied warranties of merchantability and fitness for a particular purpose in count three, and a breach of express guarantees against defects in material and workmanship in count four. The general breach of contract allegation in count one includes and incorporates the claims of counts two, three and four, but it also rests on the claim that the defendant failed to offer conforming goods when the acceptance tests were run in July 1980. Despite this claimed distinction, however, the four counts sounding in contract may be addressed in the frame work of one analysis.

There is, as a threshold matter, no dispute that the issue of whether the statute of limitations has run as to counts 1-4 is controlled by § 42a-2-725, Erie Railroad v. Tompkins, 304 U.S. 64, 58 S.Ct.

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659 F. Supp. 259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-cincinnati-ohio-v-dorr-oliver-inc-ctd-1986.