Clark Trucking of Hope Mills, Inc. v. Lee Paving Co.

426 S.E.2d 288, 109 N.C. App. 71, 1993 N.C. App. LEXIS 196
CourtCourt of Appeals of North Carolina
DecidedFebruary 16, 1993
Docket9212SC148
StatusPublished
Cited by4 cases

This text of 426 S.E.2d 288 (Clark Trucking of Hope Mills, Inc. v. Lee Paving Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark Trucking of Hope Mills, Inc. v. Lee Paving Co., 426 S.E.2d 288, 109 N.C. App. 71, 1993 N.C. App. LEXIS 196 (N.C. Ct. App. 1993).

Opinion

*73 JOHNSON, Judge.

Plaintiff, Clark Trucking of Hope Mills, Inc. (Clark), instituted this action on 17 October 1990 for restitution in quasi-contract and for damages under North Carolina General Statutes § 75-1.1 (1988). Defendant, Lee Paving Company (Lee), filed for a motion of enlargement of time on 8 November 1990, and answered on 10 December 1990. On 29 August 1991, defendant filed a motion for summary judgment. On 13 September 1991, summary judgment was granted in defendant’s favor. Plaintiff appeals.

On 17 April 1990, the North Carolina Department of Transportation (DOT) accepted bids on Project 8.T521201F-67-2(27) which is located at US-421 Bypass from north of US-64 to south of US-421 Business near Siler City. The Project is a public job which requires the employment of Disadvantaged Business Enterprises (DBE), which also include Minority Business Enterprises (MBE). Clark is a MBE under North Carolina law.

On or before 17 April 1990, Clark was asked by Lee to submit a bid for the hauling of stone aggregates from Martin Marietta’s Lemon Springs Quarry to the Project. Clark submitted to Lee a bid of $2.60 per ton hauled. On 17 April 1990, Lee submitted a $4,984,713.31 bid to DOT for the Project. Lee attached to the bid the schedule of DBE’s that would perform work on the Project, as contractors seeking to bid on DOT contracts are required to list the DBE’s and the total dollar volume under the bid in order for the bid to be responsive. Clark was listed as an MBE on Lee’s bid and its total volume properly noted.

On 8 May 1990, Lee was awarded the contract for the Project based on the bid submitted on 17 April 1990. While making arrangements for performance under the contract, Lee discovered that it could obtain a better price for stone aggregates from Mon-cure Quarry. Lee contacted Clark and asked whether Clark’s bid was effective in light of the change in quarries. Although the distance from both quarries to the Project job site was essentially the same, Clark quoted a new bid price of $2.75 per ton. Lee then notified Clark and DOT that Clark would not act as subcontractor for the project. In spite of plaintiff’s removal from the list of DBE’s, Lee maintained sufficient DBE participation on the Project to meet the Special Provisions Goals.

*74 On appeal, plaintiff-appellant brings forth four assignments of error. Appellant first assigns as error the trial court’s holding that there was a complete absence of law and fact necessary to support plaintiff’s claim for restitution under the theory of unjust enrichment. Clark contends that Lee was unjustly enriched through the use of Clark’s subcontractor bid in the general contractor bid. We disagree.

Unjust enrichment is “based upon the equitable principle that a person should not be permitted to enrich himself unjustly at the expense of another. However, this rule does not apply when the services are rendered gratuitously[.]” Atlantic Coast Line R. Co. v. Highway Commission, 268 N.C. 92, 96, 150 S.E.2d 70, 73 (1966). Moreover, quantum meruit is an equitable principle that allows for recovery for services based upon an implied contract. In order to recover in quantum meruit, plaintiff must show: (1) that services were rendered to defendants; (2) that the services were knowingly and voluntarily accepted; and (3) that the services were not given gratuitously. Johnson v. Sanders, 260 N.C. 291, 132 S.E.2d 582 (1963).

Plaintiff cannot recover on its claim because it has rendered no services to Lee, and subcontractors’ bids in this State are not viewed as sufficient consideration to support an implied contract between the contractor and the subcontractor. See Home Electric Co. v. Hall and Underdown Heating and Air Cond. Co., 86 N.C. App. 540, 358 S.E.2d 539 (1987), aff'd, 322 N.C. 107, 366 S.E.2d 441 (1988) (Subcontractor’s alleged promise to perform duct work for contractor who submitted bid in reliance on promise was not an enforceable contract absent consideration.). In merely submitting his bid,

the subcontractor does not rely on the general and suffers no detriment. A subcontractor submits bids to all or -most of the general contractors that it knows are bidding on a project. The subcontractor receives invitations to bid from some generals and submits bids to others without invitation. The time and expense involved in preparing the bid is not segregated to any particular general. The total cost is part of the overhead of doing business. The same bid is submitted to each general. Thus, whether or not any particular general wins the contract is of little or no concern to the subcontractor.

*75 Holman Erection Co. v. Orville E. Madsen & Sons, Inc., 330 N.W.2d 693, 698 (Minn. 1983).

Summary judgment is proper where there is an absence of law to support the claim made, there is an absence of fact sufficient to support the claim, or there is a disclosure of some fact which will defeat the claim. Home Electric Co., 86 N.C. App. at 540, 358 S.E.2d at 539. In this case, the facts do not support a claim of unjust enrichment nor does the law of this State. This assignment is overruled.

Plaintiff’s second assignment of error alleges that there was a genuine issue of material fact in his claim for damages under North Carolina General Statutes § 75-1.1 for unfair trade practices. Plaintiff contends that “Lee unfairly asserted its position by adopting Clark’s bid volume and MBE status to gain the prime contract and then changed quarries and refused to contract with Clark.” Having reviewed the record, we find no cognizable claim of unfair or deceptive trade practices.

The record shows that even without Clark’s bid as an MBE, Lee continued to meet the DOT goals. After Lee discovered that it could obtain stone cheaper at Moncure Quarry, which is essentially the same distance from the Project site as the quarry initially chosen, Lee asked Clark if its bid was still effective. Clark responded that it was not. Defendant-Lee then informed DOT and plaintiff that plaintiff-subcontractor would be replaced. The DOT found that defendant continued to meet the required goals, and no adverse action was taken against defendant. These facts and the surrounding circumstances do not support a claim of unfair trade practice, which is a practice that is immoral, unethical, oppressive, unscrupulous, or substantially injurious to consumers. Jennings Glass Co. v. Brummer, 88 N.C. App. 44, 52, 362 S.E.2d 578, 584 (1987), review denied, 321 N.C. 473, 364 S.E.2d 921 (1988).

The law also fails to support plaintiff’s claim for unfair trade practices.

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426 S.E.2d 288, 109 N.C. App. 71, 1993 N.C. App. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-trucking-of-hope-mills-inc-v-lee-paving-co-ncctapp-1993.