City of Idaho Falls v. Beco Const. Co., Inc.

850 P.2d 165, 123 Idaho 516, 1993 Ida. LEXIS 58
CourtIdaho Supreme Court
DecidedFebruary 2, 1993
Docket18495
StatusPublished
Cited by12 cases

This text of 850 P.2d 165 (City of Idaho Falls v. Beco Const. Co., Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Idaho Falls v. Beco Const. Co., Inc., 850 P.2d 165, 123 Idaho 516, 1993 Ida. LEXIS 58 (Idaho 1993).

Opinions

BISTLINE, Justice.

In May of 1985, the city of Idaho Falls (hereinafter the “City”) awarded Beco Construction Co., Inc. (hereinafter “Beco”) the contract for the Bel-Aire project which involved the replacement of water lines and associated trenching and street repairs in the Bel-Aire residential subdivision of Idaho Falls. Superior Excavating Company (Superior) performed much of the work for Beco.

During the construction process, numerous disputes arose between Beco and the City over the schedule and performance of the construction. The City contends it was empowered by the contract to control the manner in which Beco performed certain work. For instance, it required Beco to restore water service to nearby residents on a nightly basis. The City also insisted that water main trenches not be left open in excess of forty-eight hours and that no more that 300 feet of water main trench should be open at a time. Other disputes revolved around Beco’s obligations regarding traffic control and dust abatement and clean-up measures. Beco responded that many of the City’s demands were not authorized by the contract and led to a delay in the contract’s completion.

The contract required Beco to complete the work within sixty days of receiving notice to proceed, or be subject to liability for liquidated damages of $200 per day. Beco contended that it had substantially [518]*518completed the work before the scheduled completion date and that the City had contributed to the delay. The City believed the work was not substantially completed until seventy days after the scheduled completion date; on that basis, the City withheld liquidated damages of $14,000 from its payment to Beco.

After completing construction, Beco claimed additional compensation for extra labor and materials based on the City’s requirement that Beco replace asphalt to match the adjacent asphalt surface thickness, rather than a uniform minimum standard thickness. The City rejected this claim.

During the summer following completion, the City observed settling of the water main trenches and deterioration of the street seal coat. With the earlier disputes over liquidated damages and additional costs still unresolved, further disputes arose over warranty repair of the defective work.

The City then initiated its claim seeking damages for breach of contract due to defective workmanship, together with a declaratory judgment request to allow the City to retain liquidated damages it had withheld. Beco counterclaimed, seeking damages for additional work performed and materials delivered beyond the scope of the contract, and for recovery of liquidated damages based upon its beliefs that it had substantially completed the work by the scheduled completion date and that the City had contributed to the delay.

The jury returned a verdict finding that Beco had breached the contract and awarded the City $12,000 in damages. The jury also found that Beco had performed extra work not required by the contract and thus awarded Beco $14,000 in damages. The jury further found that the City had wrongfully withheld monies as liquidated damages and awarded Beco $1,000 of the $14,000 that had been withheld. The district court entered judgment on the verdict.

Beco filed a motion for judgment n.o.v. on the liquidated damages claim, asking that all of the monies withheld by the City be returned. Its motion was based on the premise that the jury found the City had contributed to the delay, then apportioned the liquidated damages and that such apportionment was contrary to Idaho law. The City also filed a motion for judgment n.o.v. or, in the alternative, a new trial on Beco’s claim for extra asphalt work. The district court denied both of the City’s motions and granted Beco’s judgment n.o.v. motion, ruling in accord with Beco’s premise that the jury had improperly apportioned liquidated damages. The jury award of $1,000 was vacated, and replaced with an award of $14,000, that being the amount of liquidated damages withheld by the City. The court also awarded both prejudgment and post-judgment interest. Beco’s request for attorney fees was denied.

The City filed further post-trial motions to alter the amended judgment and for a conditional new trial, both of which were denied. Beco then sought and obtained a writ of execution for garnishment of a bank account holding city funds. Prior to the writ being- executed, the City filed its notice of appeal with this Court. The following issues are raised by the City:

1. Whether the trial court properly instructed the jury on recovery of liquidated damages.
2. Whether it was prejudicial error for the trial court to refuse to admit evidence of actual damages to the City caused by Beco’s delay.
3. Whether it was prejudicial error for the trial court to admit into evidence Beco’s Exhibit O, a letter from Superior to Beco allegedly documenting additional expenses for asphalt.
4. Whether it was prejudicial error for the trial court to admit into evidence Beco’s Exhibit Z, the Grebb affidavit.
5. Whether the trial court erred in finding that the City had waived its right to seek a conditional motion for a new trial under I.R.C.P. 51(a)(1).
Beco cross-appeals, raising these issues:
1. Whether the City’s filing of the Notice of Appeal mooted the issue of [519]*519execution and garnishment of the city’s public funds.
2. Whether the trial court’s failure to award attorney fees to Beco was an abuse of discretion.
3. Whether Beco is entitled to attorney fees on appeal.

I. THE JURY INSTRUCTION ON LIQUIDATED DAMAGES

The court instructed the jury regarding liquidated damages that:

In order for the defendant [Beco] to recover on its counterclaim for liquidated damages, the defendant has the burden of proving each of the following propositions:
Number one, that the City ... has withheld from monies due Beco, Inc. an amount specified as liquidated damages because Beco failed to complete work in the time allowed in the contract.
Two, that the City ... contributed to the delay in any way to the completion of the project____

Tr. Vol. 9 at 2075-76 (emphasis added). The City contends that this instruction was too broad in that the jury was thereby instructed that, in order to recover liquidated damages retained by the City, Beco need only prove that the City contributed to the delay “in any way” regardless of whether its actions were allowed under the contract. Contrawise, the City argues that the trial court should have given its proposed liquidated damages instruction. Beco responds that the instruction as given accurately informed the jury as to Idaho law and that in any event because of its untimely submission, the district court was not required to consider it.

Failure to give an instruction in a civil case will not be held reversible error if such an instruction was not requested. Carpenter v. Double R Cattle Co., 108 Idaho 602, 701 P.2d 222 (1985); Goodwin v. Wulfenstein, 107 Idaho 492,

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City of Idaho Falls v. Beco Const. Co., Inc.
850 P.2d 165 (Idaho Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
850 P.2d 165, 123 Idaho 516, 1993 Ida. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-idaho-falls-v-beco-const-co-inc-idaho-1993.