Coy/Superior Team v. BNFL, Inc.

174 F. App'x 901
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 3, 2006
Docket04-6001, 04-6087
StatusUnpublished
Cited by5 cases

This text of 174 F. App'x 901 (Coy/Superior Team v. BNFL, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coy/Superior Team v. BNFL, Inc., 174 F. App'x 901 (6th Cir. 2006).

Opinion

OPINION

McKEAGUE, Circuit Judge.

This case arises from a subcontract to perform demolition and salvage work at a switchyard located in the East Tennessee Technology Park (“ETTP”). After the completion of the work the subcontractor, Coy/Superior, sued the contractor, BNFL, for breach of contract, negligent misrepresentation, fraud, and declaratory judgment that BNFL is responsible for certain asbestos-laden materials. Both parties filed motions for summary judgment. The district court granted the declaratory judgment sought by Coy/Superior, but granted most of BNFL’s motion for summary judgment on the remaining claims. Part of the breach of contract claim survived summary judgment and was resolved at a bench trial. Coy/Superior timely appealed both the grant of summary judgment in favor of BNFL and portions of the findings of fact from the bench trial. BNFL timely cross-appealed the grant of Coy/Superior’s motion for summary judgment on the declaratory judgment claim. For the reasons set forth below, we reverse the district court’s entry of summary judgment in favor of Coy/Superior on the declaratory judgment claim and affirm the remainder of the district court’s determinations.

I. BACKGROUND

In 1997, BNFL entered into a prime contract with the Department of Energy (“DOE”) to decontaminate, decommission, and recycle three former uranium processing buildings at DOE’s East Tennessee Technology Park (“ETTP”) near Oak Ridge, Tennessee. Under its contract with DOE, BNFL subcontracted out most of the switchyard demolition, scrap work, and related tasks to subcontractors with expertise in their respective fields.

This case centers around four synchronous condensers that BNFL sought to have removed from the K-792 switchyard. Large copper cable conductors ran from the condensers into powerhouses and then continued underground through vaults into manholes underneath process buildings. Each condenser contained significant amounts of various metals, including copper wiring, some of which was wrapped in insulating material. They were constructed in the 1950’s and each weighed approximately two hundred tons. The cohdensers were raised approximately twenty feet from the ground on concrete platforms.

In November of 1999, BNFL issued a Request for Proposals (“RFP”) for the demolition and scrapping of the four condensers in the K-792 switchyard, the removal of cable and cable trays from K-791 (one of the buildings located in the switch-yard), and removal of other scrap material from the switchyard and surrounding area. After the RFP was issued, BNFL conducted ah open bid process that included various pre-bid meetings in which BNFL answered questions from potential bidders. Prior to making the bids, each contractor, including Coy/Superior, had ample opportunity to inspect the condensers to estimate their recycle value.

Coy/Superior submitted a winning bid of $89,000. The bid amount was lower than the anticipated cost of demolition and was based in part on Coy/Superior’s assessment of the salvage value of equipment and material. A contract between Coy/Su *904 perior and BNFL was executed on January 6, 2000. The contract provided that Coy/Superior would receive $89,000 and would retain all recycle value in exchange for the dismantling and removal of the four condensers, removal of certain cable from K-791, and removal of other scrap material from the switchyards.

At the time the subcontract was executed, BNFL had no knowledge of the actual presence of asbestos in the condensers. BNFL’s statements at the pre-bid meeting disclosed the possibility that asbestos would be encountered, and BNFL made no warranty at the pre-bid meeting or in the subcontract that it had performed a thorough inspection of the condensers. The subcontract does state that “BNFL has removed all known asbestos-containing materials.” The subcontract also states that if Coy/Superior “encounters any suspect materials in the execution of its work, it shall notify the BNFL STR [Subcontract Technical Representative] immediately.” BNFL acknowledges that it was responsible for wastes generated and for asbestos abatement during the period that the condensers remained at the BNFL worksite.

After executing the subcontract—but before the condensers had been removed from the worksite—Coy/Superior learned about certain potential asbestos by reading operating manuals it found while working on the condensers. A Coy/Superior employee informed BNFL of his suspicion of the presence of asbestos. BNFL arranged for testing which ultimately did indicate the presence of asbestos. BNFL arranged for abatement of the asbestos. On March 21, 2000, shortly after BNFL first tested for asbestos in the locations suggested by Coy/Superior, Coy/Superior asked for additional testing in specific, designated locations on the condensers, and again BNFL fulfilled its obligation by testing for asbestos. In that instance, however, no asbestos was detected.

In May of 2000, Coy/Superior loaded the pieces of the condensers onto its vehicles and removed them from the BNFL work-site. Coy/Superior took the large condenser pieces to another site, known as “Portal 10,” within the ETTP that Coy/Superior leased from a party unrelated to BNFL. While the condensers were still located at its Portal 10 worksite, Coy/Superior became aware that there was additional asbestos in the condensers. On July 13, 2000, while attempting to sell some of the materials salvaged from the condensers, Coy/Superior was asked by a copper buyer in Indiana to guarantee that asbestos was not present in the wiring. Testing revealed the presence of asbestos. Coy/Superior contacted BNFL and notified them of the situation. Ultimately, negotiations broke down regarding who was responsible for properly disposing of the asbestos located at the Portal 10 site. Other disagreements regarding the performance of the subcontract surfaced as well. Coy/Superior sued BNFL for breach of contract, negligent misrepresentation, fraud, and declaratory judgment that BNFL is responsible for the asbestos at the Portal 10 site.

BNFL moved for summary judgment on all of the claims while Coy/Superior filed a motion for summary judgment on its declaratory judgment claim. The district court granted Coy/Superior’s motion for summary judgment and entered an order declaring that BNFL “is the entity responsible for the asbestos abatement at issue in this case.” The district court granted BNFL’s motion for summary judgment on the negligent misrepresentation and fraud claims and granted it in part as to the contract claim. A bench trial was conducted to determine the lone contract claim which survived. The district judge en *905 tered findings of fact and conclusions of law stating that BNFL breached the subcontract by allowing a third party to remove certain copper cable from the K-791 building, but did not breach the contract by failing to adequately test the synchronous condensers for asbestos. Finally, the district judge calculated damages based on the conclusion that BNFL improperly allowed ten thousand pounds of copper cable to be removed which BNFL was entitled to under the subcontract. Coy/Superior timely appealed and BNFL timely filed a cross-appeal.

II. ANALYSIS

A. Standard of Review

1. Summary Judgment

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Upton v. BNFL, Inc.
646 F. App'x 421 (Sixth Circuit, 2016)
Mactec, Inc. v. Bechtel Jacobs Company, LLC
346 F. App'x 59 (Sixth Circuit, 2009)
Higgins v. Internal Revenue Service
403 B.R. 537 (E.D. Tennessee, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
174 F. App'x 901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coysuperior-team-v-bnfl-inc-ca6-2006.