Cooke Contracting Co. v. Department of State Highways 2

223 N.W.2d 15, 55 Mich. App. 479, 1974 Mich. App. LEXIS 845
CourtMichigan Court of Appeals
DecidedSeptember 11, 1974
DocketDocket 19114
StatusPublished
Cited by7 cases

This text of 223 N.W.2d 15 (Cooke Contracting Co. v. Department of State Highways 2) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooke Contracting Co. v. Department of State Highways 2, 223 N.W.2d 15, 55 Mich. App. 479, 1974 Mich. App. LEXIS 845 (Mich. Ct. App. 1974).

Opinion

Allen, J.

The question we are to decide on this appeal is whether the Court of Claims properly granted defendants’ motion for summary judgment in regard to plaintiffs’ claim for damages of $18,920.36 arising out of delay in the scheduled date for the start of construction of a bridge over the Clinton River. Summary'judgment was made under GCR 1963, 117.2(1) on the ground that plaintiffs failed to state a claim upon which relief could be granted.

On March 7, 1966, plaintiff Cooke Contracting Company, low bidder on highway project U6 3043A-C1, contracted with defendants for 1.7 miles of grading and pavement including the construction of a bridge over the Clinton River in Oakland *482 County. The total contract price was $2,492,775.78, some 10.44% over the state’s engineering estimate of project costs. Shortly thereafter, Cooke Contracting Company subcontracted the bridge work to plaintiff A. J. Williams Construction Company for $287,707.66. Accompanying and made a part of the bid proposal prepared by the state and upon which plaintiffs’ bid was based, was a "coordinating clause” which called attention to other engineering construction projects, one of which was for relocating and deepening a portion of the Clinton River. As to this project, the bid proposal provided:

"According to the terms of the County’s contract for the river and sewer relocation, (such work is) to be completed by April 30, 1966.”

Unfortunately, as it developed, the river relocation work was first deferred six weeks until June 15. By letter under date of May 27, defendants wrote plaintiff "you can schedule construction to start June 16, 1966 unless a strike occurs”. A strike by the reinforcing steel workers union did occur further delaying commencement of the bridge work seven weeks to August 8. After August 8, additional delays occurred as a result of the rising river level. Plaintiffs’ expenses necessitated by the post-August 8 delays became Count II of the suit as originally filed but prior to appeal were settled. At issue in this appeal is only Count I which sets forth the claim of damages of $18,920.36 for the 13 weeks delay between April 30, 1966 and August 8, 1966.

Plaintiffs’ carefully prepared brief sets forth three arguments in support of reversal of the decision of the Court of Claims. Seriatim, we list the arguments presented and our responses thereto. In responding we must accept the rule *483 that a motion for summary judgment, granted under GCR 1963, 117.2(1) on the ground that the opposing party has failed to state a claim, is to be tested by the pleadings. Todd v Biglow, 51 Mich App 346, 349; 214 NW2d 733 (1974), said:

"A motion based solely on GCR 1963, 117.2(1) or 117.2(2) * * * is to be tested by the pleadings alone. (Omitted citations.) Interrogatories and depositions are relevant only if the ground stated for summary judgment is that there is no genuine issue of material fact— not if it is asserted that the pleading fails to state a claim or defense.”

Crowther v Ross Chemical Co, 42 Mich App 426, 431; 202 NW2d 577 (1972), states the test as being,

"whether plaintiffs claim, on the pleadings, is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recovery.”

I

Plaintiffs argue that under well-established case law a warranty of accuracy attaches to the representations contained in a bid proposal and that where a proposal contains material inaccuracies either by a false statement of fact or the omission of a material fact, the party making the bid proposal is liable in damages. Hersey Gravel Co v State Highway Department, 305 Mich 333; 9 NW2d 567 (1943); W H Knapp Co v State Highway Department, 311 Mich 186, 199-200; 18 NW2d 421 (1945); Holloway Construction Co v Michigan, 44 Mich App 508, 523; 205 NW2d 575 (1973). Plaintiffs contend that nothing in the bid proposal itself expressly prohibited start of construction simultaneously with the other construction projects mentioned in the forepart of the coordinating clause *484 and in fact the coordinating clause suggests simultaneous construction. 1 Plaintiffs further assert that they were misled because the bid proposal contained a starting date reading "start work within ten (10) days after receiving notice of award of contract”. Notice of award of the contract was given on March 7, 1966 — this being the same date as the signing of the contract — and thus plaintiffs contend it was wrongly represented that construction could commence March 17, 1966. Plaintiffs pursue the argument by asserting that the period of construction delay was initiated by defendants at a meeting February 28 (seven days before the signing of the contract) when defendants for the first time notified plaintiffs that the bridge work could not begin until all drain sewage work was completed by the Oakland County Drain Commission.

The foregoing argument would be persuasive were it not for the inclusion in the bid proposal of a clause specifically exempting' defendants from liability for delay caused by the actions of third parties. Plaintiffs’ pleadings include by reference the bid proposal and contract and this clause becomes a part of the pleadings upon which the motion for summary judgment is judged. Page 32 of the bid proposal contains what is entitled the "Coordinating Clause”. It consists of two pages, the first page of which calls the bidder’s attention to the fact that certain delineated construction projects are or will be in force during the life of the *485 proposed contract. One of the specifically designated projects is the river relocation and sewer work. The clause then lists the progress schedule for all of the related work and indicates that the completion date for the Oakland County Drain Commission project (river relocation and sanitary sewers) was April 30, 1966. Importantly, the completion date was not represented as a warranty by defendants. The words used were: "According to the terms of the County’s contract for the river and sewer relocation (the work is) to be completed by April 30, 1966”. The concluding paragraph of the coordinating clause then reads:

"No claims for extra compensation or adjustments in contract unit prices will be allowed on account of deletions of work items or delay or failure of others to complete work units as scheduled.”

Clearly the concluding paragraph indicates State of Michigan’s intent to exclude itself from any claim for added compensation if for some reason delay in the State of Michigan job were to occur by the contractor on any of the specifically designated projects being performed by others. Obviously the paragraph refers to these other jobs listed on page one of the coordinating clause. Only one of the so designated projects was under the control of state highway authorities and it was only prudent that the state protect itself by inserting the quoted clause. Further, it is not a clause usually appearing in highway projects.

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Bluebook (online)
223 N.W.2d 15, 55 Mich. App. 479, 1974 Mich. App. LEXIS 845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooke-contracting-co-v-department-of-state-highways-2-michctapp-1974.