Cortinas Painting & Restoration v. Corp Inc. & Mercer Island

Court of Appeals of Washington·Decided October 16, 2017·No. 75728-8·Unpublished

Opinion

IN THE COURT OF APPEALS FOR THE STATE OF WASHINGTON

CORTINAS PAINTING & ) No. 75728-8-1 RESTORATION, INC., a Washington ) Corporation, )

Appellant, )

) DIVISION ONE v. )

)

CORP INC., CONSTRUCTION, a ) UNPUBLISHED OPINION Nevada Corporation; TRAVELERS ) CASUALTY AND SURETY COMPANY ) OF AMERICA, BOND NO. 103481034; ) TRAVELERS CASAULTY AND ) SURETY COMPANY OF AMERICA ) BOND NO. 10971249; and the CITY ) OD MERCER ISLAND, )

)

Respondents. ) FILED: October 16, 2017

SPEARMAN, J. — Cortinas Painting & Restoration, Inc., (Cortinas)

subcontracted with Corp Construction Inc.,(Corp)to complete the painting and finishes for a new fire station for the city of Mercer Island (City). The project was plagued by delays, some caused by Cortinas, which resulted in $671,250 in daily liquidated damages withheld by Mercer Island. Corp, in turn, withheld payment from Cortinas. Cortinas sued for the contract balance and Corp counter-sued for Cortinas' contribution to project delays. The trial court found that Cortinas was responsible for the delays as alleged by Corp, and ordered damages. These damages did not account for the lower actual liquidated damages rate that Corp

incurred once it settled with Mercer Island. In this respect, the trial court erred and we reverse. In all other respects, we affirm.

FACTS

The City of Mercer Island contracted with Corp to build a new Fire Station No. 92. The total contract price was $3,500,000. General contractor Corp engaged various subcontractors to complete particular aspects of the project. Cortinas was the subcontractor "to complete all painting and coating, exterior transparent wood finishes,[staining] and high performance exterior steel coatings" for $34,572. Clerk's Papers(CP)at 155-56.

Corp began the project on January 6, 2014 and anticipated completion by November 1, 2014. Corp agreed that it was liable to the City for liquidated damages of $3,750 per day if it took longer than 300 days to complete the project. Cortinas agreed in its subcontract that it was responsible for liquidated or actual damages incurred by Corp due to Cortinas' failure to perform its work in a timely manner. The project was not finished on time and some of the project delays were attributable to Cortinas.

Cortinas was required to stain exterior wood siding for the station. But first it had to provide samples of the stain to the architect for approval. There were problems with the samples. Cortinas first provided samples that were stained only on one side, even though project specifications required staining on all sides. Cortinas delivered the fully stained samples on November 12, 2014, but they were the wrong color. Cortinas re-stained the samples, but they were too dark. The third sample was rejected due to "[s]treaking and mottled stain finish" and other application problems. Exhibit (Exh.)222. The architect approved the

fourth submittal. Corp's project manager, Adam French, testified that problems with the samples caused two days of delay to the project on December 12 and 15, 2014.

Once the samples were approved, Cortinas could begin staining the wood siding for the station's exterior. But this was also delayed. When the cedar lumber for the siding was ready for delivery on January 9, 2015, Cortinas did not have a working forklift, so it could not take delivery of the lumber for ten days. French ascribed two days of delay to the project's completion for Cortinas' inability to take delivery of the lumber. Once delivered, Cortinas began staining the lumber. They used a stain that takes a long time to dry, and that must be applied in a warm environment. Corp presented evidence that the stain was not applied in a warm environment. On January 29, Cortinas indicated that the siding was ready for pick up. But the siding was still wet, so it could not be transported to the jobsite. French testified that Cortinas' staining problems delayed the project by three days.

Cortinas was also required to paint the exposed steel casings for the large doors to the fire truck's bays. First they painted a mock-up of the finish with Tnemec paint. This sample section was approved for its 3/8 inch nap finish, but rejected for color. Cortinas was nevertheless allowed to proceed. Cortinas painted the casings with the correct color, but used a 1/2 inch nap finish. The work was rejected because the finish deviated from the approved mock up. Cortinas sanded down the Tnemec paint and repainted with a 3/8 inch nap. Because the doors could not be installed until the casings were painted correctly,

French testified that the nap problem delayed installation of the doors by two days.

Cortinas was required to paint the wood base for the perimeter of some rooms in the station. Corp scheduled installation of the base for February 11, 2015 and notified Cortinas on January 26 that it could begin painting the base. Cortinas did not deliver the painted boards until February 13. French testified that this delayed other interior finishes to the project by one day.

Project plans required that some conduits and ducting installed below the ceiling be painted after installation. Cortinas believed that they were required to paint the ceiling, rather than the installations below it. This misunderstanding delayed the project by one day because it held up installation of other interior finishes and systems.

Corp became frustrated by Cortinas' slow pace of work and issued a notice of delay that Cortinas must properly staff the project within 24 hours. Cortinas substantially increased its man hours on the project. French testified that the understaffing caused one day delay to project completion.

Cortinas was required to paint a fire hydrant and exterior fire department connection (FDC). Cortinas initially painted the hydrant and FDC the wrong colors, and as a result the building failed the City's civil inspection. French testified that the painting problem delayed the project by one day, for a total of thirteen alleged days of delay.

When the project went beyond its projected completion date, the City began withholding $3,750 per day from its payments to Corp. They continued withholding until the fire station received a certificate of occupancy on May 5,

2015. The withheld damages totaled $671,250. Corp withheld payment of Cortinas' final bill totaling $15,745.28. Cortinas sued Corp for the unpaid bill. Corp answered and counterclaimed for damages related to Cortinas' delays. In a separate lawsuit, Corp sued the City for $1,201,170. To settle, the City paid Corp $575,000. The City retained the difference, $626,170, to offset $671,250 in daily liquidated damages.

In a six day bench trial, the trial court found that Cortinas was responsible for thirteen days of delay to the project. CP at 158. The court applied Corp's daily liquidated damages rate of $3,750 for a total of $48,750 in passed along liquidated damages. In addition, the court found that Cortinas caused Corp $7,116.83 in losses as a result of delays. This totaled $55,857.33 in damages, which was offset by Cortinas' unpaid bill for a total of $40,122.05 in damages owed by Cortinas.

As of trial in June 2016, the station was still not substantially complete because the roof required reconstruction.

DISCUSSION

Critical Path Delay Cortinas argues that there is not substantial evidence to support the trial court's finding that it caused thirteen days of delay to the project.

A trial court's findings of fact are reviewed for substantial evidence. In re Estate of Jones, 152 Wn.2d 1, 8, 93 P.3d 147(2004). There is a presumption in favor of the trial court's findings, and the party claiming error has the burden of showing that a factual finding is not supported by substantial evidence. Fisher Properties, Inc. v. Arden—Mayfair, Inc., 115 Wn.2d 364, 369, 798 P.2d 799

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