Glenn Mechanical, Inc. v. South Arkansas Regional Health Center, Inc.

278 S.W.3d 583, 101 Ark. App. 440, 2008 Ark. App. LEXIS 196
CourtCourt of Appeals of Arkansas
DecidedMarch 5, 2008
DocketCA 06-1473
StatusPublished
Cited by5 cases

This text of 278 S.W.3d 583 (Glenn Mechanical, Inc. v. South Arkansas Regional Health Center, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glenn Mechanical, Inc. v. South Arkansas Regional Health Center, Inc., 278 S.W.3d 583, 101 Ark. App. 440, 2008 Ark. App. LEXIS 196 (Ark. Ct. App. 2008).

Opinion

D.p. Marshall Jr., Judge.

Dirt work led to a dispute that became this case. Southeast Building Concepts was the general contractor for building South Arkansas Regional Health Center a new hospital in El Dorado. Glenn Mechanical was the second subcontractor to take on the dirt work. The circuit court held that the Southeast/Glenn contract, which Glenn drafted, governed the disputed work of undercutting for the hospital parking lot. Based on the existence of that contract, Judge Guthrie also rejected Glenn’s quasi-contract theories of recovery. Glenn’s appeal brings the case here.

I.

We affirm the circuit court’s decision that Southeast and Glenn made a contract that covered the disputed dirt work. Glenn bid on two subcontracts for this project: the heating, ventilation, and air conditioning work and the dirt work. It got the HVAC contract, and in due course completed all this mechanical work without any snags. Glenn did not get the dirt work subcontract initially. But when the company who did filed for bankruptcy after starting the job, Southeast asked Glenn to bid to finish it. Glenn did so. Southeast accepted the bid, which was $62,000.00 for specified tasks and a per-load price for undercutting — hauling dirt out of and into — the parking lot site. The specific number of loads was to be determined by written change order. The parties reduced their agreement to a contract, which Glenn wanted to write and did write. The contract was signed the day that Glenn began work. Because the dirt work needed to be done immediately, Southeast wanted Glenn on site as soon as possible, and their contract provided that time was of the essence.

The parties’ dispute turns on Article 4 of their contract. This provision is entitled “CHANGES IN THE WORK.” It states:

I. The Contractor and Subcontractor agree that the Contractor may add to or deduct from the amount of work covered by this Agreement, and any changes so made in the amount of Work involved, or any other parts of this agreement, shall be by a written amendment hereto setting forth in detail the changes involved and the value thereof which shall be mutually agreed upon between the Contractor and Subcontractor. The Subcontractor agrees to proceed with the Work as changed when so ordered in writing by the Contractor so as not to delay the progress of the Work, and pending any determination of the value thereof unless Contractor first requests a proposal of cost before the change is effected. If the Contractor requests a proposal of costs for a change, the Subcontractor shall prompdy comply with such request. Change Order Items Specifically include:
i. Demo of Wet Sandy Soil and Haul Offper cubic yard $6.50
ii. Haul in, Spread and Compact Select Fill per cubic yard $11.50
iii. Haul in, Spread and Compact “B” Stone per cubic yard $32.00
iv. Haul In, Spread and Compact SB-2 Stone per cubic yard $32.00
v. Lay Geo Textile Fabric (eq. Mirafi 140N) per 12' x 360' roll $825.00
II. The Subcontractor will make all claims for extra compensation and for extension of time to the Contractor promptly in accordance with this Article and consistent with the Contract Documents.
III. Not withstanding any other provision, if the Work for which the Subcontractor claims extra compensation is determined by the Owner not to entitle the Contractor to a Change Order or extra compensation, then the Contractor shall not be hable for any extra compensation for such Work, unless Contractor agreed in writing to such extra compensation.

The original subcontractor had left a big hole containing wet, sandy soil and standing water. At the request of Southeast’s job superintendent, Glenn therefore began undercutting the parking lot. Glenn’s witnesses testified at trial that the superintendent told them that a change order was in the works for the many loads of dirt that Glenn began hauling out and hauling in. Glenn worked for about a week and faxed an interim bill to Southeast for approximately $27,000.00 for undercutting. Meanwhile, Glenn requested and Southeast approved two change orders about unrelated dirt work on a driveway and a French drain. These change orders increased the fixed-price part of the contract to approximately $94,000.00.

Southeast did not respond immediately to Glenn’s interim bill for the undercutting. Glenn continued to haul dirt out and in, preparing the ground for the parking lot. After another week of work, Southeast rejected the first bill, and Glenn submitted a bill for its second week of undercutting. The total for all of Glenn’s undercutting work was approximately $64,000.00. Because Southeast refused to pay the bills, the dirt work stopped. Southeast and Glenn were unable to resolve their dispute; Glenn left the job; and Southeast contracted with a third company to finish the dirt work. Southeast also paid approximately $38,000.00 to a dozer company with whom Glenn had contracted to help on the undercutting.

The hub of the case is whether Glenn and Southeast had a contract about the undercutting. The circuit court’s conclusion that they did is not clearly against the preponderance of the evidence. Taylor v. Hinkle, 360 Ark. 121, 129, 200 S.W.3d 387, 392 (2004). Glenn contends otherwise, arguing that the contract is indefinite about the undercutting and that the parties’ conflicting testimony about whether the $62,000.00 base price covered the undercutting shows that no mutual agreement existed. E.g., Williamson v. Sanofi Winthrop Pharm., Inc., 347 Ark. 89, 98, 60 S.W.3d 428, 433-34 (2001) (contractual elements).

Glenn’s contract is definite enough and reflects mutual agreement. Southeast agreed to Glenn’s proposal about how to decide the amount of undercutting to be done at Glenn’s per-load price. The nature of this work necessarily contained some uncertainty. Exactly how much unstable soil needed to be removed and replaced with more solid material to provide an adequate base for the parking lot was a matter of judgment. Glenn’s project engineer testified that all of Glenn’s work was necessary to stabilize the ground. Other witnesses, however, testified that less undercutting would have been sufficient for this parking lot, which would not carry heavy loads. And one Southeast witness testified that he did not think that, if it had been given the choice, the Health Center would have agreed to pay for all the undercutting that Glenn eventually did.

The parties dealt with the uncertainty by subjecting the undercutting work to the change-order provision of their agreement with fixed load-in/load-out prices. Southeast was not on the hook for the undercutting until it approved the work in writing.

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Bluebook (online)
278 S.W.3d 583, 101 Ark. App. 440, 2008 Ark. App. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glenn-mechanical-inc-v-south-arkansas-regional-health-center-inc-arkctapp-2008.