E.W. Burman, Inc. v. Bradford Dyeing Association, Inc.

Supreme Court of Rhode Island·Decided November 26, 2019·No. 18-261·Published

Opinion

November 26, 2019

Supreme Court

No. 2018-261-Appeal.

(WC 08-107)

E.W. Burman, Inc. :

v. :

Bradford Dyeing Association, Inc. :

NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone 222-3258 of any typographical or other formal errors in order that corrections may be made before the opinion is published.

Supreme Court

No. 2018-261-Appeal.

(WC 08-107)

E.W. Burman, Inc. :

v. :

Bradford Dyeing Association, Inc. :

Present: Suttell, C.J., Goldberg, Robinson, and Indeglia, JJ.

OPINION

Justice Indeglia, for the Court. The plaintiff, E.W. Burman, Inc. (E.W. Burman or plaintiff), appeals from a Superior Court judgment entered in favor of the defendant, Bradford Dyeing Association, Inc. (Bradford Dyeing or defendant), following a bench trial in which the trial justice concluded that no oral or implied-in-fact contract existed between the parties. The trial justice also found that the defendant was not liable under the theories of quasi-contract or promissory estoppel. This case came before the Supreme Court on November 6, 2019, pursuant to an order directing the parties to appear and show cause why the issues raised in this appeal should not be summarily decided. After carefully considering the parties’ written and oral submissions and reviewing the record, we conclude that cause has not been shown and that this case may be decided without further briefing or argument. For the reasons set forth in this opinion, we affirm the judgment of the Superior Court.

I

Facts and Travel

In May 2007, a fire occurred at Bradford Dyeing’s facility in Westerly that caused significant structural damage. The defendant enlisted the help of Commonwealth Engineers

(Commonwealth) to assist in the restoration of its facilities. The restoration project consisted of two phases: Phase one required the installation of a temporary roof that would permit operations to continue, and phase two required the complete replacement of the roof. Phase two is the basis for this action. Liberty Mutual Insurance Company (Liberty Mutual) insured defendant, contributed to the cost for the phase one repairs, and was expected to also contribute to phase two repairs. Liberty Mutual was therefore involved in communication with Commonwealth and defendant regarding the roof reconstruction designs for phase two. Commonwealth designed the new roof and promptly issued requests for bids. At the close of the bid deadline, plaintiff was the lowest bidder by approximately $400,000.

On August 27,1 a meeting was held between plaintiff’s president, Edward W. Burman, Jr.

(Burman), two individuals from Commonwealth, and Charles Doherty from Liberty Mutual. Liberty Mutual had engaged the private engineering firm of Simpson, Gumpertz & Heger to verify the phase two designs and to determine whether plaintiff understood the scope of the roof project. A representative from that firm was also in attendance at that meeting. What occurred at that meeting is disputed, but, nevertheless, contract negotiations ensued shortly after. While negotiations continued, plaintiff incurred costs for drawings and materials for the roof restoration project. Ultimately, before any written contract had been signed, defendant decided to change its roof plans.

The plaintiff sent defendant an invoice for materials purchased based on the original roof design, and it sent a revised bid to Commonwealth with respect to the new roof design. In response, defendant, through its attorney, sent plaintiff a letter claiming that plaintiff was never authorized to purchase materials for the project. Subsequently, plaintiff filed a complaint against

1 All events in this case, unless otherwise designated, took place in 2007.

defendant in Washington County Superior Court alleging (1) breach of contract, (2) breach of implied contract, and (3) that defendant was liable under the theory of quasi-contract. The plaintiff in 2011 filed an amended complaint that added the allegation that defendant was liable under the theory of promissory estoppel.

A bench trial before a justice of the Superior Court commenced on January 23, 2012.

The trial lasted four days and concluded on January 26, 2012. Three witnesses testified: Burman; Commonwealth’s corporate secretary and treasurer, Steven M. Clarke (Clarke); and Attorney Gerald Petros (Petros), who had been defendant’s outside legal counsel. Burman was the first witness to testify, and he recounted that plaintiff submitted a bid on the roof restoration project on August 17. On August 20, Bruce Bartel, Commonwealth’s project engineer for this project, contacted Burman and informed him that E.W. Burman was the low bidder. Burman testified that Bartel asked how soon they could start, and Burman told him they could start immediately. Burman testified that Bartel called him later in the week and said “that, again it looks like it’s a go project for us,” and that the final hurdle was meeting with Liberty Mutual because it would be paying for the project and wanted to know if plaintiff completely understood the scope of the work.

Burman testified that the scope meeting occurred on August 27. Present were Burman, Bartel and Clarke from Commonwealth, Charles Doherty from Liberty Mutual, and a representative from Liberty Mutual’s engineering firm. Burman testified that no employee or representative of defendant was present at the meeting. Burman testified that Bartel and Clarke told him at the meeting that plaintiff was the contractor on the project and that plaintiff and defendant “had an oral contract after [they] came out of that meeting.” He testified that he, Bartel, and Clarke discussed what form of contract they would use, and Burman offered to

“expedite things” and send over a form contract for review, which Burman did the same day. Burman testified that he submitted a final proposed schedule of construction and that neither Commonwealth nor Liberty Mutual objected to the schedule.

Burman testified that, based on the schedule he submitted and because “[t]ime was of the essence,” he, on behalf of plaintiff, authorized Reliable Truss and Components, Inc. to begin preparing shop drawings for the roof trusses and ordered $63,000 worth of stainless-steel angles and flat bars from Shawmut Metal (Shawmut), despite not having signed a written contract for the project. He testified that Commonwealth had agreed that the work had to start immediately in order to meet the end date of December 31 and that he was “never told [at] any time at that 27th meeting not to proceed with any of the work. It was full steam ahead.” Burman testified that his company commences work prior to having a written contract “all the time.”

Burman further testified that E.W. Burman’s project manager, Rich Hawes, sent an e-mail to Bartel on September 13 asking permission to visit the job site to take measurements. Burman testified that Bartel replied, including Burman and Clarke on the response, stating: “We have been directed by Bradford’s attorney to wait on any visits or other work activities until contract issues are worked out with the insurance company. So, wait on any site visits until there is a contractual relationship between Burman and Bradford Dye.” Burman testified that he interpreted Bartel’s e-mail to mean that something was going on between defendant and Liberty Mutual, but that he did not know what the issue was.

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E.W. Burman, Inc. v. Bradford Dyeing Association, Inc., (R.I. 2019).

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