Geer-Melkus Construction Co. v. United States ex rel. Bison Construction Co.

302 F.2d 181
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 26, 1962
DocketNo. 16907
StatusPublished
Cited by2 cases

This text of 302 F.2d 181 (Geer-Melkus Construction Co. v. United States ex rel. Bison Construction Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Geer-Melkus Construction Co. v. United States ex rel. Bison Construction Co., 302 F.2d 181 (8th Cir. 1962).

Opinion

VAN OOSTERHOUT, Circuit Judge.

In this action, tried to the court, the use plaintiff Bison Construction Co.. (Bison) was awarded judgment against Geer-Melkus Construction Company (Geer-Melkus) and the surety1 on its-construction bond for a balance of $16,-196.19 due on its subcontract to performcei’tain work for Geer-Melkus, the px’imecontractor, on a construction project at the Grand Forks Air Force Base. Kemper Construction Company (Kemper) as subcontractor of Bison who was made a third party defendant recovered judgment on its counterclaim for repairing the cracked pipe in the amount of $580.-82.

This action was prosecuted under the-Miller Act, 40 U.S.C.A. § 270a et seq. Jurisdiction is established.

The trial court’s memorandum opinion, reported at 195 F.Supp. 362 fairly states-the issues and incorporates the court’s-findings of fact and sets out the basis-for its decision.

The rather complicated pleadings are-fairly described in the trial court’s opinion. The ultimate issues upon which this case turns are simple. Bison brought [183]*183this suit to recover a balance of $16,-196.19 alleged to be due it under its subcontract. Geer-Melkus does not dispute that it has withheld payment of such amount from the contract price but claims it is entitled to credit in this amount because of damage caused by water escaping by reason of a break on April 12, 1959, in the water line installed by Kemper by arrangement with Bison, in fulfillment of the latter’s contract with Geer-Melkus. The fact that damages were incurred in such amount by escaping water is not disputed.

Geer-Melkus, in its pleadings, claims it is entitled to an offset of the aforesaid $16,196.19 damage for one or more of the following reasons:

1. Negligence by Bison or Kemper in laying the pipe without adequate ground cover.
2. Breach of an express or implied warranty that water mains would be installed in such a manner as to be satisfactory for their intended purpose.
3. Breach of the subcontract to properly install the water mains.

The trial court rejected such affirmative defenses and awarded Bison judgment for the unpaid balance on its contract,2 and Kemper judgment on its ■counterclaim for repairing the pipe.

Upon this appeal, Geer-Melkus contends that the court erred in making the following fact findings:

A. “Kemper accompanied by a representative of Bison informed Geer-Melkus that the water main installation had been completed but that an additional two feet of soil ■cover was necessary to protect the water main during the winter months.”
B. “The laying of the storm sewer practically on top of the main, the brteaking of the main in January by Geer-Melkus, the resulting soaking of the surrounding earth by water, and the leaving of the water main for more than a month with only flax straw for cover, were all contributing factors.”
C. “Kemper installed the water main according to the plans and specifications provided with materials that met the required Government standards.”

Rule 52(a), Federal Rules of Civil Procedure, 28 U.S.C.A. requires that findings of fact by the trial court “shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of the trial court to judge of the credibility of the witnesses.”

Such rule is based upon sound legal principles and has been uniformly applied by the courts. We have repeatedly held that we will not attempt to substitute our judgment, based upon the cold record, for that of the trial court in determining credibility of witnesses and disputed fact issues. The responsibility for determining credibility and disputed fact issues is vested in the trial court. The trial court’s fact findings can be set aside only upon clear demonstration thaf they were without substantial evidentiary support or induced by an erroneous view of the law. Fact findings supported by substantial evidence cannot be upset. Transport Mfg. & Equip. Co. v. Fruehauf Trailer Co., 8 Cir., 295 F.2d 223, 227; Nelson v. Seaboard Surety Co., 8 Cir., 269 F.2d 882, 886; Pendergrass v. New York Life Ins. Co., 8 Cir., 181 F.2d 136, 138.

The trier of fact, whether court or jury, is the sole judge of the credibility of witnesses and the weight to be given their testimony. Upon appeal the evidence, including such inferences as may be reasonably drawn therefrom, is to be viewed in the light most favorable to the prevailing party. United States v. Stoppelmann, 8 Cir., 266 F.2d 13, 17; Pendergrass v. New York Life Ins. Co., supra.

[184]*184With the foregoing well-established rules in mind, we look to the evidence for the purpose of determining whether the challenged findings are supported by substantial evidence. The controlling issues in this case are fact issues. It is apparent that the trial court’s fact findings were not induced by any erroneous view of the law.

Bison entered into a subcontract with Geer-Melkus, the prime contractor, to do certain of the work on the Government construction project here involved, including the laying of the water mains in accordance with the plans and specifications. Kemper, a subcontractor under Bison, did the work of laying the water mains. The installation of the water mains was accelerated to accommodate Geer-Melkus so that it would have needed water at the construction site. The laying of the pipe was completed in October, 1958. The installation included a shutoff valve for controlling the flow of water into the pipe line here involved.

On January 13, 1959, Geer-Melkus employees, while making an excavation for an oil tank, hit a section of the water main with a back hoe puncturing it and causing a considerable amount of water leakage. Because of cold weather immediate repairs could not be made. The water was shut off, the water leakage was pumped out, and the excavation at the point of the break was filled with fifty bales of flax straw. There is evidence that filling the hole with flax straw is proper procedure under the circumstances but there is also evidence that the straw does not afford as much protection against frost as dirt. The break in the main was satisfactorily repaired by Bison by laying a section of new pipe in March of 1959. It is not claimed that either Bison or Kemper are legally responsible for the January break caused by the operation of the back hoe by Geer-Melkus employees.

On April 12,1959, a break in the water main occurred. Geer-Melkus claims such break was caused by reason of the failure of Bison and its subcontractor Kemper to place seven feet of dirt fill over the main, as called for by the plans and specifications. This is the break that allowed water to escape which caused the $16,196.19 damage to the project for which plaintiff seeks the right of offset. This break occurred in the segment of the pipe line approximately twenty feet distant from the January break.

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Walter P. Cravens v. Fred B. McKinnell
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Geer-Melkus Construction Company v. United States
302 F.2d 181 (Eighth Circuit, 1962)

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Bluebook (online)
302 F.2d 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geer-melkus-construction-co-v-united-states-ex-rel-bison-construction-ca8-1962.