Continental Concrete Pipe Corp. v. Century Road Builders, Inc.

552 N.E.2d 1032, 195 Ill. App. 3d 1, 11 U.C.C. Rep. Serv. 2d (West) 1156, 142 Ill. Dec. 291, 1990 Ill. App. LEXIS 260
CourtAppellate Court of Illinois
DecidedMarch 2, 1990
Docket1—88—2771, 1—88—2787, 1—89—0007 cons.
StatusPublished
Cited by24 cases

This text of 552 N.E.2d 1032 (Continental Concrete Pipe Corp. v. Century Road Builders, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Concrete Pipe Corp. v. Century Road Builders, Inc., 552 N.E.2d 1032, 195 Ill. App. 3d 1, 11 U.C.C. Rep. Serv. 2d (West) 1156, 142 Ill. Dec. 291, 1990 Ill. App. LEXIS 260 (Ill. Ct. App. 1990).

Opinion

JUSTICE EGAN

delivered the opinion of the court:

The plaintiff, Continental Concrete Pipe Corporation (Continental), brought an action for an accounting to recover the purchase price for concrete pipe sold to the defendant, Century Road Builders, Inc. (Century). Century counterclaimed against Continental for breach of expressed and implied warranties and sought to recover damages for supplying allegedly defective pipe.

After a bench trial, the judge entered judgment for Continental but awarded only a portion of its contract price. He also entered judgment for Century on its counterclaim. Continental appeals from both judgments.

The Village of Bridgeview (Village) hired Robinson Engineering (Robinson), the Village engineers, to design a sewer project to divert sanitary flow into the Metropolitan Sanitary District facility.

Century was the only bidder on the job. Century had approximately 20 years’ experience in laying storm sewers, water mains, sanitary sewers and in road work, paving, mass excavation and restoration work in underground utilities primarily in the south suburbs of Chicago. Century had an excellent working relationship with Robinson, with whom it had worked on approximately 10 to 15 other projects. The project called for the use of 15-inch, 0 ring, sanitary sewer pipe. The specifications required the pipe and joint assemblies to meet American Society for Testing and Materials (ASTM) standards. Century had installed several O ring pipe projects before.

On August 26, 1982, Century and Continental signed a subcontract for Continental to sell 2,466 feet of pipe along with gaskets and lubricant. Continental had supplied Century with concrete pipe on almost all its concrete pipe projects. Specifically, George Kachavos, Century’s president and sole stockholder, discussed the cost of the pipe and its expected performance with Continental’s salesman, Thomas Locke. Locke had sold concrete pipe with an 0 ring gasket for use on other sanitary sewer projects, and he knew that the specified pipe would be used in a sewer project.

Kachavos was concerned with the infiltration requirement because experience indicated that that “particular material” had the most difficulty in achieving the required infiltration. Locke assured him that the pipe would comply with ASTM standards, that it would have tight joints and that Continental would conduct a vacuum test on each pipe to insure that the pipe barrel would not leak. Locke testified that Continental did, in fact, conduct a vacuum test on every piece of pipe that was sold to Century. The total contract price was $17,084.25. The pipe consisted of a barrel, a bell and a spigot. A bell was on one end of the pipe and a spigot on the other. An 0 ring rubber gasket was to be inserted in a groove on the spigot end of the pipe. A lubricant was to be applied to the joint before assembly.

Century began installing the sewer line on September 27, 1982. Continental delivered the pipe an average of 288 feet at a time, and it made nine deliveries to Century between September 27 and November 5, 1982. The crew would use a backhoe to push the spigot end of one pipe into the bell end of another pipe which had already been' bedded on the ground. The 0 ring gasket was placed on the spigot and greased for insertion into the bell. As soon as a section of pipe was laid and a joint sealed, the pipe was backfilled with stone and dirt.

During the installation of the first 100 feet of pipe on the first day the crew noticed a “backout” problem. After joining several pipes, one of Century’s employees became concerned when the spigot end of a newly laid pipe rolled back out of the bell end of an already laid pipe approximately 1 to lxk inches. Kachavos immediately contacted Continental’s salesman, Tom Locke. Locke arrived at the job-site and demonstrated how to properly lubricate and install the 0 ring gaskets. He insisted that Continental had supplied the correct gaskets for the pipes utilized in the project. The backout problem eased a bit, but occurred throughout the remainder of the project.

Century’s crew followed the instructions of Kachavos to deal with the occasional, but continuing, backout problem. The crew held the pipe in with a bar and dumped two buckets of stone and dirt on top of the barrel of the pipe to keep it from rolling back out. The crew was careful to keep the dirt away from the bell or spigot ends so that no dirt came in contact with the O ring. The weight of the stone and dirt would hold the pipe “home” and keep it from backing out. The crew used this technique on about 5 or 6 of the 40 or 50 joints which they laid each day.

Locke stopped at the jobsite about twice a week to check on the job and to see whether the crew needed supplies. He indicated that he was satisfied with Century’s gasket installation and with the installation in general.

George Robinson, a field inspector with Robinson, visited the job-site at various times each day to insure that the pipes were being installed according to its specifications. He kept a daily log. He believed that Century performed its job properly and that it was installing the pipe correctly. The crew maintained a straight and true line throughout the job. He never saw evidence of either improper bedding or backout.

Russ Prekwas, Robinson’s project engineer, also visited the jobsite about twice a week, and Wally Wroble of the Metropolitan Sanitary District checked on the job three or four times a week.

On November 16, 1982, after the first phase of the project had been completed and 1,800 feet of pipe had been laid, George Van Deursen, the Century foreman, conducted an infiltration test which was required by the Metropolitan Sanitary District. The test revealed an excessive amount of infiltration, and the line failed the test. This was the first time that Kachavos became aware of any infiltration problem.

Kachavos ordered Van Deursen to inspect the line to determine the precise cause of the leaks. Kachavos also contracted with Video Pipe Grouting, Inc., to televise the pipe and to grout the leaks. Kachavos became aware of cracks in the pipe joints during the telegrouting process.

On December 9, 1982, Kachavos phoned Locke and requested a meeting at the jobsite. He informed Locke that he was concerned about the infiltration problem in the sewer line and that telegrouting had revealed cracks in the joints of the pipe. On December 30 Kachavos and Van Deursen informed Locke that they suspected the extensive cracking was due to defective pipes. Locke denied that there was any problem with the pipe.

Kachavos then contracted with Jo Mar Telegrouting (Jo Mar) to video tape the entire line to observe cracks, leaks and alignment. Apparently, Continental concurred in the decision. Jo Mar televised the sewer line in January and twice in February 1983.

In early January 1983, Locke attributed the problem with the sewer line to “ground conditions and some working conditions out there.” In a telephone conversation on January 4, Kachavos threatened Continental with “severe consequences” if it did not participate in remedying the situation.

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552 N.E.2d 1032, 195 Ill. App. 3d 1, 11 U.C.C. Rep. Serv. 2d (West) 1156, 142 Ill. Dec. 291, 1990 Ill. App. LEXIS 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-concrete-pipe-corp-v-century-road-builders-inc-illappct-1990.