Falcon Construction Company, Plaintiff-Cross-Defendant-Appellant v. Economy Forms Corporation, Defendant-Cross-Plaintiff-Appellee

805 F.2d 1229, 6 Fed. R. Serv. 3d 431, 1986 U.S. App. LEXIS 34730
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 15, 1986
Docket85-2778
StatusPublished
Cited by15 cases

This text of 805 F.2d 1229 (Falcon Construction Company, Plaintiff-Cross-Defendant-Appellant v. Economy Forms Corporation, Defendant-Cross-Plaintiff-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Falcon Construction Company, Plaintiff-Cross-Defendant-Appellant v. Economy Forms Corporation, Defendant-Cross-Plaintiff-Appellee, 805 F.2d 1229, 6 Fed. R. Serv. 3d 431, 1986 U.S. App. LEXIS 34730 (5th Cir. 1986).

Opinion

ALVIN B. RUBIN, Circuit Judge:

A construction company, which appeals from a district court judgment awarding damages and attorneys’ fees for breach of contract to a materialman who furnished it with supplies, contends that the district court judgment should be reversed because the court did not give careful, independent consideration to the record before it, but merely adopted the materialman’s proposed findings. Although the district court did little more than sign proposed findings and its actions do not demonstrate that it conducted a significant, independent evaluation of the record, the construction company has furnished us no reason to conclude that the findings are elearly erroneous and lack evidentiary support. We do, however, amend that court’s judgment to correct mathematical and clerical errors committed by counsel for the materialman and adopted by the court, and we remand the matter so that the trial court may set forth its bases for determining the amount of attorneys’ fees it awarded.

I.

Falcon Construction Company, under a subcontract with Williams Brothers Construction Company, a general contractor, constructed the mainspan of the Houston Ship Channel Toll Bridge. The project required construction of four pier shafts made of concrete cast-in-place to support a superstructure and the roadway of the bridge. Each of the twenty-seven-feet-high piers was to be constructed in six lifts. Falcon subsequently entered into a contract with Economy Forms Company (“EFCO”) to lease concrete forms and pur *1231 chase other materials necessary to build the piers. They agreed that EFCO would lease to Falcon one set of forms at $250 per day. The parties contemplated that, if everything ran according to plan, each segment would take ten days to complete, or a total of 240 days for all twenty-four lifts. Because, however, it was anticipated that delays might occur and make it impossible to complete the project on time with a single set of forms, the contract provided Falcon with the option of leasing additional forms at the same price.

Eventually, substantial delays did occur, the cause of which is disputed. Falcon contends that early delays were caused at least in part by faulty forms provided by EFCO and by late delivery of some of those materials. EFCO argues that its forms were delivered timely and that all delays were caused by Falcon’s problems with labor and materials unrelated to EFCO’s performance. Evidently, the trial court believed EFCO for it ruled in EFCO’s favor, and Falcon has not specifically challenged that conclusion as clearly erroneous.

When Falcon found itself unable to meet its construction deadlines, it availed itself of its option to lease a second set of forms, and entered into a second contract with EFCO. Further delays made it necessary, less than two months later, for Falcon to lease a third set of forms. Each of the contracts also required EFCO to supply Falcon with other materials necessary for completion of the piers, and Falcon’s account was invoiced accordingly.

When the first lease between Falcon and EFCO was signed, Falcon had been awarded only the contract for the construction of the piers. Later, it was also awarded a contract to construct starter segments that were to be built atop two of the piers. In September 1980, therefore, Falcon and EFCO entered into a fourth contract in which EFCO leased to Falcon two sets of the forms required for construction of the starter segments at a cost of $380 per day for each set of forms ($760 total per day). In addition, EFCO leased to Falcon support brackets to be used with the starter-segment forms. The rental for those brackets was calculated and invoiced separately.

Each of the three pier-form-lease contracts between EFCO and Falcon provided for a maximum rental period of 240 days, but each also provided that, if the forms were not then returned to EFCO, rental charges would be resumed fifteen days after “completion of the last lift on the piers [for which] the equipment was required.” Falcon contends that these contract terms were subsequently modified by an oral agreement that Falcon would be charged only for days in which the forms were actually in use.

Each party complains about the adequacy of the other’s performance. Falcon contends that EFCO was tardy in delivering the initial set of forms, that the design of the forms made it impossible for the internal vibrators to reach the bottom portion of the forms and that, as a result, Falcon was required to do remedial work on the first lift. Falcon also asserts that the design of the forms created difficulty with the alignment process. Falcon, therefore, places at least partial blame for its delays in completing construction upon EFCO. Falcon also complains that its account with EFCO was continuously plagued with inaccuracies and that proper invoicing was never maintained.

EFCO admits that computer error created problems with Falcon’s account and that Falcon had complained about inaccuracies. EFCO contends, however, that Falcon never specified the basis of its dissatisfaction with the account and evaded giving any details when EFCO attempted to discuss the matter. EFCO also complains that Falcon did not return the forms as required under the terms of the contract: some were never returned; others were returned only after extensive delay; and some were returned in a damaged, unclean, and unusable condition.

Falcon eventually stopped making payments on its account because of its dissatisfaction with EFCO’s billings. EFCO then notified Williams Brothers, the general contractor, and Federal Insurance Company, the bonding company, that Falcon was indebted to EFCO and had refused to pay. *1232 EFCO contends that the notice was based upon EFCO’s computer-generated account which EFCO reasonably believed to be accurate at the time. Falcon insists that EFCO knew at the time it issued notice of Falcon’s outstanding debt that some of the items in the account were not just and . owing.

Falcon also contends that EFCO continued billing Falcon for two complete sets of forms even after substantial amounts of the equipment were returned. The dispute apparently arises out of a disagreement over the agreed-upon conditions for returning equipment. Falcon argues that the amount of rental was to be reduced by the pro-rata value of equipment returned. EFCO contends that the rent on each form was to continue to accrue until a set percentage of the component pieces of the form had been returned.

When efforts to resolve the disputes failed, Falcon filed suit and EFCO filed counterclaims. The matter was tried before the district court without a jury for six days. No opinion was rendered, however, until two years later, after this court had issued a writ of mandamus compelling the district court to enter judgment. The district court then adopted much of EFCO’s proposed findings of fact and conclusions of law — often verbatim, including typographical errors and erroneous mathematical calculations — and entered judgment denying any relief to Falcon and granting all of the relief sought by EFCO, including attorneys’ fees and prejudgment interest.

II.

Falcon’s primary contention is that the trial court’s findings should be reversed because they demonstrate that they result from a flawed judicial process, laden with error.

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805 F.2d 1229, 6 Fed. R. Serv. 3d 431, 1986 U.S. App. LEXIS 34730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falcon-construction-company-plaintiff-cross-defendant-appellant-v-economy-ca5-1986.