Commercial Contractors, Inc. v. United States

37 Cont. Cas. Fed. 76,298, 25 Cl. Ct. 666, 1992 U.S. Claims LEXIS 167, 1992 WL 74784
CourtUnited States Court of Claims
DecidedApril 14, 1992
DocketNo. 648-89C
StatusPublished
Cited by5 cases

This text of 37 Cont. Cas. Fed. 76,298 (Commercial Contractors, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Contractors, Inc. v. United States, 37 Cont. Cas. Fed. 76,298, 25 Cl. Ct. 666, 1992 U.S. Claims LEXIS 167, 1992 WL 74784 (cc 1992).

Opinion

MEMORANDUM OF DECISION

HARKINS, Senior Judge:

This case is before the court on defendant’s motion for partial summary judgment. Oral argument was heard on April 9, 1992. At the close of argument, counsel were told the motion for partial summary judgment would be denied.

Plaintiff, Commercial Contractors, Inc., on August 25, 1987, was awarded a firm fixed price contract on a formally advertised IFB by the Army Engineers for reconstruction work at Libby-Army Airfield in Fort Huachuca, Arizona. The procurement was a total small business set-aside; the contract amount was $1,005,000. The work was to be commenced within 5 calendar days and completed within 180 days after receipt of the Notice to Proceed (NTP). The NTP was received on November 2, 1987, and contract work began on November 11, 1987. The reconstruction work was finished, and the project was accepted by the Government as substantially complete, on July 13, 1988. The total performance period was 253 days.

The contract documents were modified 12 times by P00001 through P00012. P00004 modified the contract to add both a time and a money change. All other modifications involved only a money change. P00006 through P00012 were made and dated in the period August 5 to September 20, 1988. Plaintiff was assessed $17,160 in liquidated damages for 44 days delay.

On April 20, 1989, the Final Payment Certificate of the Resident Engineer stated “the Government has no outstanding claims against the contractor in connection with this work,” all modifications have been incorporated into the construction and completed, and “no further modifications are pending.”

On May 9, 1989, plaintiff submitted a certified claim for 91 days delay in total amount of $74,481.06: (1) 41 days for late issuance of NTP, (2) 15 days for runway closure markings and temporary lighting, and (3) 35 days for failure to provide asphalt test results. The claim also sought refund of assessed liquidated damages.

Final closure of the contract was on June 30, 1989; the final contract price was $1,019,302. Both parties reserved rights as to the pending claim, as follows:

THIS FINAL PAY ESTIMATE DOES NOT PREJUDICE THE CONTRACTOR’S RIGHT TO PROCEED WITH IT’S CLAIM IN THE AMOUNT OF $74,-481.06, SUBMITTED TO CONTRACTING OFFICER BY LETTER DATED 9 MAY 89. GOVERNMENT DOES NOT WAIVE ANY CLAIM IT MAY HAVE ARISING OUT OF THE SUBJECT MATTER OF THE CLAIM ACCEPTED BY THE CONTRACTOR.

On November 21, 1989, the contracting officer issued a decision that denied plaintiff’s three delay claims. The decision, without explanation, ordered return of the $17,160 for liquidated damages.

In this court, the amended complaint seeks $196,482 as damages for the three delay claims that were denied by the contracting officer, and for the assessment of liquidated damages. Discovery extended from April 16, 1990, to August 16, 1991. On September 11, 1991, defendant filed a motion for partial summary judgment that asserts the doctrine of accord and satisfaction bars plaintiff’s impact delay claim for the runway closure markings and temporary lighting in P00002 (Mod. 2), and the impact delay claim for failure to provide timely the asphalt test results in P00006 (Mod. 6). Defendant’s motion for partial summary judgment does not include plaintiff’s claim for impact delay due to late issuance of the NTP.

Plaintiff asserts Mods. 2 and 6 involve only time and money costs for the changed work. Plaintiff contends that at no time [669]*669during negotiations for Mods. 2 and 6 was there any discussion of costs resulting from impact delays to unchanged work.

Defendant is a movant for summary judgment under RUSCC 56. Summary judgment is appropriate where there is a showing that there is no genuine issue as to any material fact, and that the movant is entitled to judgment as a matter of law. A movant for summary judgment has the burden of showing the absence of genuine issues as to any material facts. Adickes v. Kress, 398 U.S. 144, 159, 90 S.Ct. 1598, 1609, 26 L.Ed.2d 142 (1970). A complete failure of proof concerning an essential element of the nonmoving party’s case entitles the moving party to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). The movant’s burden may be discharged by showing that there is an absence of evidence to support the nonmovant party’s case. Sweats Fashions, Inc. v. Pannill Knitting Co., 833 F.2d 1560, 1563 (Fed.Cir.1987). Doubts concerning factual issues are to be resolved in the favor of the nonmovant. United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962).

The scope and content of the doctrine of accord and satisfaction was examined in detail by the Court of Claims in Chesapeake & Potomac Telephone Co. v. United States, 654 F.2d 711, 228 Ct.Cl. 101 (1981) (acceptance and cashing of check tendered as “complete" payment not an accord and satisfaction), and in Emerson-Sack-Warner Corp. v. United States, 416 F.2d 1335, 189 Ct.Cl. 264 (1969) (ASBCA erred as a matter of law in finding an accord and satisfaction on facts that did not show a mutual agreement for settlement of a bona fide dispute).

“Accord and satisfaction” refers to a method to discharge and terminate existing rights. It provides a perfect defense in an action for enforcement of a previous claim, whether that claim was well founded or not. An accord is an agreement by one party to give or perform and by the other party to accept, in settlement or satisfaction of any existing or matured claim, something other than that which is claimed to be due. The process of making an accord is the same as in the case of other contracts.

The following elements are essential to an accord and satisfaction: (1) proper subject matter; (2) competent parties; (3) resolution of a bona fide dispute between the parties; (4) meeting of the minds of the parties; and (5) consideration.

Plaintiff’s fixed price contract contained the standard required clauses in Army Engineer construction contracts for work inside the United States, including Changes (FAR 52.243-4), and Suspension of Work (FAR 52.212-12). The Changes clause authorizes an equitable adjustment for changes that cause an increase or decrease in the cost of or the time required for work under the contract, “whether or not changed by any such order.” FAR 52.243-4, subsection (d). The Suspension of Work clause does not authorize an equitable adjustment for any delay “for which an equitable adjustment is provided for or excluded under any other term or condition of this contract.” FAR 52.212-12, subsection (b).

Mods. 2 and 6 were on standard forms. Mod. 2 was signed by the contracting officer on February 16, 1988, and by plaintiff on February 23, 1988; Mod. 6 was signed by the contracting officer on August 5, 1988, and by plaintiff on August 16, 1988. Mod.

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37 Cont. Cas. Fed. 76,298, 25 Cl. Ct. 666, 1992 U.S. Claims LEXIS 167, 1992 WL 74784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-contractors-inc-v-united-states-cc-1992.