Dugan & Meyers Construction Co., Inc. And the Goettle Co. v. Worthington Pump Corporation (Usa)

746 F.2d 1166, 39 U.C.C. Rep. Serv. (West) 1652, 1984 U.S. App. LEXIS 17311
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 26, 1984
Docket83-3525
StatusPublished
Cited by6 cases

This text of 746 F.2d 1166 (Dugan & Meyers Construction Co., Inc. And the Goettle Co. v. Worthington Pump Corporation (Usa)) 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
Dugan & Meyers Construction Co., Inc. And the Goettle Co. v. Worthington Pump Corporation (Usa), 746 F.2d 1166, 39 U.C.C. Rep. Serv. (West) 1652, 1984 U.S. App. LEXIS 17311 (6th Cir. 1984).

Opinions

COHN, District Judge.

I.

This is a breach of contract case. On April 20, 1983 the district court, following a bench trial, entered a judgment against defendant Worthington Pump Corporation (USA) (Worthington) for $424,625.24 in fa[1168]*1168vor of plaintiffs Dugan and Meyers Construction Co., Inc. (Dugan & Meyers) and The Goettle Co., (Goettle), for the damages it found they suffered because of the failure of the mixed liquor pumping system at the Little Miami Waste Water Treatment Plant (the Plant) operated by the Metropolitan Sewer District of Greater Cincinnati (the District).

E.C.I. Company (E.C.I.), a wholly owned subsidiary of Dugan & Meyers, was the prime contractor for general construction work in improvements at the Plant which included the mixed liquor pumping system. The work was actually performed by Dugan & Meyers and Goettle as a joint venture. Worthington was a subcontractor for the pumps, motors and control panels of the mixed liquor pumping system.

The district court found that Worthington breached an implied warranty of merchantability and fitness for a particular purpose in the work that it did. Ohio Rev. Code § 1302.27 (U.C.C. § 2-314) and § 1302.28 (U.C.C. § 2-315). Worthington appeals.

We find that the district court erred in concluding that Worthington’s limited warranty terms were not part of its subcontract and also erred in concluding that Worthington breached an implied warranty. The subcontract documents expressly limited Worthington’s warranty to eighteen months following delivery of the particular equipment it furnished. Additionally, Worthington did not subcontract to deliver the complete mixed liquor pumping system. There was no evidence that the particular equipment delivered by Worthington did not meet specifications or that there was any defect in the equipment at the time it was delivered.

II.

Our conclusion that the district court erred in holding that Worthington’s warranty terms were not part of its subcontract requires us to review the trial record in some detail. We will do this by first reviewing the documents which reflect the subcontract1 and then the testimony regarding these documents. This review is also relevant to our conclusion that the district court erred in holding that Worthington breached an implied warranty because, as shall be seen infra, the district court defined the scope of the work performed by Worthington in considerably broader terms than is reflected in the documents.

Fed.R.Civ.P. 52(a) provides that findings of fact by the district court shall not be set aside unless they are clearly erroneous. See Alexander v. Youngstown Board of Education, 675 F.2d 787, 795-796 (6th Cir.1982). In our rejection of the fact findings of the district court we have followed that standard. As to the interpretation and construction of the subcontract, the clearly erroneous rule does not apply. See e.g., Industrial Equipment Co. v. Emerson Elec. Co., 554 F.2d 276, 284 (6th Cir.1977) (“The decision on the existence of a contract and the decision on the construction of a contract are both ultimate questions of law.”); Taylor & Gaskin, Inc. v. Chris-Craft Industries, 732 F.2d 1273, 1277 (conclusion of law are subject to de novo review); Cordovan Associates v. Dayton Rubber Co., 290 F.2d 858, 860 (6th Cir.1961).

A.

Early in 1974 the District invited bids for improvements to the Plant in the form of a proposal and form of contract. Contract 3A covered general construction and contained forty-four separate items of work. Item 21 — Mixed Liquor Pumping Equip[1169]*1169ment — covered the particular system, including equipment, necessary to pump effluents from aeration tanks to final settling tanks. This item had twenty-one detailed parts or specifications. The form of proposal described the work for Item 21 as follows:

The Contractor shall furnish and install at the locations shown on the drawings or as required, a complete mixed liquor pumping installation consisting of eight (8) horizontal, centrifugal, mixed flow type pumps, driven by variable speed, wound rotor motors. Drivers and pumps shall be direct connected through flexible couplings and mounted on a common bedplate. Included also is the complete control installation. Two complete systems will be furnished, one for each bank (east and west) of pumps, each bank consisting of four (4) pumps.
The above is a general description of the equipment required, however, the intent of this specification is to require an installation complete in every detail. Consequently, the Contractor will be responsible for all accessories, appurtenances and any special construction which may be necessary to properly complete the work of this Item. The price bid under this item shall include the cost of all materials and labor required.

More specifically Item 21 included, in addition to the pumps, motors and control installation, work under other items such as concrete foundations, motor starter equipment, flow meters, piping and an overall electrical link up.

The form of proposal generally required each bidder to schedule the name of the manufacturer of the equipment proposed to be furnished together with certain additional essential information regarding such equipment. These “major equipment offerings”, as they were called, provided that if the manufacturer or supplier was not one of those named in the specifications the bidder was required to furnish additional data. As to Item 21, the bidder was also required to list as a second manufacturer one of the manufacturers named in the specifications “together with the total lump sum amount ... to be added to or deducted ... from the [bid] if the District selected] the equipment of that manufacturer”. Worthington was one of the manufacturers of pumps named in the specifications. As is customary, several manufacturers of pump equipment made proposals to likely bidders offering their equipment for inclusion in the bids. Worthington was one of the pump manufacturers making such a proposal.

On May 15, 1974, Worthington addressed a form letter to Dugan & Meyers offering to provide equipment for certain specific parts of Item 21. Presumably, Goettle received the same letter. On May 17, 1974, Worthington addressed form letters to Goettle and Dugan & Meyers following up the letter of May 15, 1974. The May 15, 1974 letter referred to “our quote CLV-129-74E-FL” and described the specific parts of Item 21 Worthington offered to provide2 as well as parts of Item 29, the service water pumps, which Worthington was willing to provide. Neither letter contained a price.

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746 F.2d 1166, 39 U.C.C. Rep. Serv. (West) 1652, 1984 U.S. App. LEXIS 17311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dugan-meyers-construction-co-inc-and-the-goettle-co-v-worthington-ca6-1984.