Guy M. Cooper, Inc. v. East Penn School District

903 A.2d 608, 2006 Pa. Commw. LEXIS 404
Commonwealth Court of Pennsylvania·Decided July 26, 2006·Published·Cited by 55 cases

Opinion

OPINION BY

Judge SIMPSON.

In the first of two consolidated appeals arising out of construction of the East Penn Middle School (Project), Guy M. Cooper, Inc. (Mechanical Contractor) contends the Court of Common Pleas of Le-high County (trial court) erred by granting summary judgment in favor of East Penn School District (School District) on Mechanical Contractor’s breach of contract and unjust enrichment claims. In the second appeal, a protective appeal, School District contends the trial court erred by granting judgments in favor of Bilt-Rite Contractors, Inc. (General Contractor), United States Fidelity & Guaranty Company (Surety) and The Architectural Studio (Architect) on School District’s claims over against General Contractor, Surety and Architect. Discerning no error, we affirm.

I.

A. Factual History

Prior to June 1997, School District solicited bids for construction of a new middle school. Relevant to these appeals, School District awarded General Contractor the overall construction contract and Mechanical Contractor the heating, ventilation and air-conditioning contract (HVAC). School District hired Architect to design the Project, and O’Brien-Kreitzberg & Associates, Inc., as its Project Manager. Surety issued a performance bond for General Contractor naming School District as Obligee. 1

The Contract Documents between School District and its prime contractors, including General and Mechanical Contractors, include: Standard Form of Agreement between Owner and Contractor (Standard Form); General Conditions of the Contract for Construction (General Conditions); Supplementary Conditions of the Contract for Construction (Supplementary Conditions); Project Manual and other state-required documents. Of particular import here, Supplementary Condition 15.8.1 of the Contract Documents provides:

[School District] shall not be hable to contractor or any subcontractor for claims or damages of a monetary or any other nature caused by or arising out of delays contemplated or not contemplated at the signing of the contract. The sole remedy against [School District] for delays shah be the allowance to claimant of additional time for completion of work.

Reproduced Record (R.R.) at 73a.

The various construction contracts required completion of the Project within 460 days of issuance of the notices to proceed. On June 6, 1997, School District issued notices to proceed to all contractors. Therefore, the Project was to be completed by September 9,1998.

As construction progressed, delays became apparent. In November 1998, two months after the original Project completion date, School District terminated General Contractor for a six-week period. 2 General Contractor ultimately returned to the Project, and School District and General Contractor set a new substantial completion date in August 1999. Delays continued, and the Project was substantially completed on January 27, 2000, 505 days beyond the original completion date.

*612 B. Procedural History

In September 2002, Mechanical Contractor filed its original complaint against School District. School District filed preliminary objections. Mechanical Contractor filed a second amended complaint, after which School District joined General Contractor, Architect, and Surety as Additional Defendants. Architect then joined Project Manager.

In its third amended complaint, Mechanical Contractor sets forth two counts. In Count I it alleges School District breached its contract with Mechanical Contractor by, in essence, failing to ensure construction proceeded without delay or interruption. 3 In Count II it alleges School District retained the benefit of Mechanical Contractor’s additional labor and materials resulting from the delays without compensating Mechanical Contractor for its added expenses.

In its complaint joining additional defendants, School District alleges Mechanical Contractor’s harm, if any, resulted from General Contractor’s and Architect’s breach of contract or negligence. The joinder complaint further alleges that Surety is liable for General Contractor’s delays by virtue of the performance bond. 4

Discovery ensued. Afterwards, all parties except Mechanical Contractor filed motions seeking judgment, either on the pleadings or as summary judgment. On November 7, 2005, the trial court entered five orders granting the judgment motions. As a result, Mechanical Contractor was out of court.

Mechanical Contractor now appeals the trial court’s order granting summary judgment in favor of School District. In its protective appeal, School District challenges the trial court’s orders granting General Contractor’s, Architect’s and Surety’s judgment motions. 5

On appeal, in reviewing the trial court’s grant of summary judgment, we are limited to determining whether the trial court committed an error of law or abused its *613 discretion. Salerno v. LaBarr, 159 Pa.Cmwlth. 99, 632 A.2d 1002 (1993). Summary judgment is appropriate only when, after examining the record in the light most favorable to the non-moving party, there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Id. 6

II.

Appeal at 2430 C.D.2005

In Mechanical Contractor’s appeal of the trial court’s order granting summary judgment in favor of School District, it contends the trial court erred because: it offered sufficient evidence School District failed to act on an essential matter necessary for the prosecution of its work and, therefore, the contract’s “no damages for delay” clause should be set aside; its claim for damages was timely; and, it offered sufficient evidence to establish Mechanical Contractor provided additional labor and materials benefiting School District for which it was not compensated. For the following reasons, we disagree.

A. No Damages for Delay Clause

In its first argument, Mechanical Contractor contends the trial court erred by granting summary judgment where it provided sufficient evidence to prove School District failed to act on an essential matter necessary to the prosecution of its work and, therefore, the “no damages for delay” clause should be set aside.

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Guy M. Cooper, Inc. v. East Penn School District, 903 A.2d 608, 2006 Pa. Commw. LEXIS 404 (Pa. Ct. App. 2006).

903 A.2d 608 (Guy M. Cooper, Inc. v. East Penn School District) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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