Crossland Acquisition, Inc. v. HNTB Corporation

CourtCourt of Appeals of Texas
DecidedAugust 16, 2016
Docket14-15-00463-CV
StatusPublished

This text of Crossland Acquisition, Inc. v. HNTB Corporation (Crossland Acquisition, Inc. v. HNTB Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crossland Acquisition, Inc. v. HNTB Corporation, (Tex. Ct. App. 2016).

Opinion

Affirmed and Memorandum Opinion filed August 16, 2016.

In The

Fourteenth Court of Appeals

NO. 14-15-00463-CV

CROSSLAND ACQUISITION, INC., Appellant V.

HNTB CORPORATION, Appellee

On Appeal from the 190th District Court Harris County, Texas Trial Court Cause No. 2013-63341

MEMORANDUM OPINION

Crossland Acquisition, Inc. appeals the trial court’s grant of summary judgment in favor of HNTB Corporation. In a single issue, Crossland contends the trial court erred in determining that the parties’ contracts required Crossland to complete all services for a fixed maximum price. We affirm. BACKGROUND

The Texas Department of Transportation (“TxDOT”) hired HNTB in June 2006 to serve as the program manager in charge of planning and design management for the U.S. 290/Hempstead corridor expansion program. HNTB, in turn, hired numerous subcontractors to perform a broad range of services including financial planning, right-of-way surveying and acquisition, utility coordination, geotechnical services, design support, and construction oversight.

Crossland was one of the subcontractors HNTB hired to perform right-of- way acquisition services for certain parcels of land along the highway expansion project. To that end, HNTB and Crossland signed a Master Agreement in July 2006. The Master Agreement provided the general terms governing the relationship between HNTB and Crossland but did not identify any specific services that Crossland would perform under the contract; instead, the Master Agreement provided that HNTB and Crossland would use Task Orders to describe their “mutual agreement on the scope of the Services, schedule, compensation and other particulars . . . .”

HNTB and Crossland executed several Task Orders; relevant to this case are Task Orders 3 and 4. These Task Orders identified right-of-way acquisition services Crossland was to perform concerning two groupings of land tracts collectively referred to as Proposition 12 and Proposition 14. Task Order 3 provided that, “[i]n return for the performance of the foregoing obligations, HNTB shall pay to [Crossland] the maximum amount of $1,988,636.46 . . . .” Task Order 4 similarly provided that HNTB would pay Crossland the “maximum amount” of $1,079,550.74 in return for Crossland’s performance of its obligations under that Task Order.

2 Task Orders 3 and 4 further provided that the “maximum amount” owed under each Task Order was payable pursuant to a fee schedule attached to each Task Order. The fee schedules for both Task Orders identified the “method of payment” as “specified rate,” meaning that HNTB would pay Crossland for the work Crossland performed during the previous billing cycle based on specified hourly rates.

The parties subsequently executed four supplemental agreements pertaining to Task Order 3 and two supplemental agreements pertaining to Task Order 4. The supplemental agreements enlarged the scope of work Crossland was to perform, extended the termination dates of the Task Orders, and increased the maximum amounts payable under the Task Orders.1

Work proceeded on the U.S. 290/Hempstead corridor expansion program for several years. In early 2012, Crossland notified HNTB that it would “reach its maximum sum payable on Task Order 3” during that billing cycle. Crossland asserted that because the contract was “a cost-reimbursement contract with a maximum sum and negotiated rates, not a fixed[-]price agreement,” it had “no authorization to perform work which will exceed this maximum sum.” Accordingly, Crossland stated that it would cease all work under Task Order 3 once the maximum amount payable was reached. HNTB responded as follows:

1 To account for the additional scope of services added under Task Order 3, the parties executed supplemental agreements that extended the termination date from September 30, 2011, to January 31, 2013, and increased the maximum amount payable to $2,700,775.69. Task Order 4 was amended by supplemental agreements to extend the termination date from June 30, 2012, to November 30, 2013, and to increase the maximum amount payable to $1,282,100.74. One supplemental agreement to Task Order 4 changed the method of payment for work performed under that specific supplemental agreement to “unit costs,” meaning that HNTB paid Crossland specified amounts when Crossland hit certain “milestones” — completion of specified tasks.

3 We are in receipt of your letter . . . noting that Crossland will reach its maximum amount under this Task Order during this current period. Please note that the maximum amount is also subject to the contracted scope of services. . . . Note that management of the available funds to complete the contracted scope of services is the responsibility of Crossland related to services contracted in a specific work authorization. Should appropriate actions not be taken or unsatisfactorily taken [sic] to manage the work tasks within the budget, this does not necessarily relieve the provider of the responsibility for the contracted scope of services. While Crossland has indicated that they may be approaching the maximum amount, we have not received adequate detail on proposed additional scope or justification clarifying that additional scope of work is warranted. Note that we have had numerous conversations and provided email correspondence on our concern that the funds needed to be adequately managed based on contracted scope of services. . . . . . . In accordance with the contract, you should not perform any additional scope of services unless specifically included in a supplemental work authorization approved by TxDOT. However, this does not relieve you from the responsibility of performance of the current contracted scope.

Crossland continued to perform work under the Task Orders, but was not paid for any work beyond the maximum amounts stipulated in the Task Orders and the supplemental agreements.2

Crossland sued HNTB in October 2013 asserting breach of contract and quantum meruit claims. Crossland contended that its contracts with HNTB only required it to perform work on an hourly basis until it reached the maximum amount payable; upon reaching that amount, Crossland contended, it could perform no further work absent agreement with HNTB to increase the maximum amount payable regardless of the completion status of any pending tasks.

2 Crossland contends it is owed an additional $967,785.07 for uncompensated work it performed beyond the maximum amounts payable under Task Orders 3 and 4.

4 Accordingly, Crossland contended that HNTB breached the contract by requiring Crossland to perform work without compensation. Alternatively, Crossland argued that it was entitled to recover value of the work that it performed for HNTB in excess of the contractual maximum amounts under a theory of quantum meruit.

Crossland and HNTB filed cross-motions for summary judgment in December 2014. The trial court denied Crossland’s motion and granted HNTB’s motion in January 2015. Crossland subsequently contended that the parties had moved for summary judgment only on Crossland’s breach of contract claim. The trial court issued an amended order in February 2015 clarifying that its January summary judgment order was interlocutory. HNTB then moved for summary judgment on Crossland’s quantum meruit claim, which the trial court granted in May 2015. The second summary judgment order resolved all claims in the case and resulted in a final judgment.3 Crossland timely appealed.

STANDARD OF REVIEW AND APPLICABLE LAW

We review summary judgments de novo. Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex. 2005).

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Bluebook (online)
Crossland Acquisition, Inc. v. HNTB Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crossland-acquisition-inc-v-hntb-corporation-texapp-2016.