Harper/Nielsen-Dillingham, Builders, Inc. v. United States

81 Fed. Cl. 667, 2008 U.S. Claims LEXIS 120, 2008 WL 1922981
CourtUnited States Court of Federal Claims
DecidedApril 29, 2008
DocketNo. 05-269C
StatusPublished
Cited by3 cases

This text of 81 Fed. Cl. 667 (Harper/Nielsen-Dillingham, Builders, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harper/Nielsen-Dillingham, Builders, Inc. v. United States, 81 Fed. Cl. 667, 2008 U.S. Claims LEXIS 120, 2008 WL 1922981 (uscfc 2008).

Opinion

OPINION

FIRESTONE, Judge.

Pending before the court is the motion of the United States (“government” or “defendant”) for partial summary judgment. The plaintiff, Harper/Nielsen Dillingham Builders, Inc. (“Harper” or “plaintiff’), brought this action on behalf of its subcontractor, Karlesldnt-Crum, Inc. (“KCI” or “subcontractor”), to recover from the government $770,565.00 in excess costs that KCI allegedly incurred due to various delays caused by the government and because of the wage classifications established by the contract. In a prior opinion, this court dismissed the plaintiffs wage-related claims for lack of jurisdiction but found disputed issues of fact precluding summary judgment on the delay-related claims. Following discovery, the government again moved for summary judgment on the plaintiffs delay claims and in the alternative on the plaintiffs claims for unabsorbed home office overhead.1

The government contends that it is entitled to summary judgment with respect to the plaintiffs delay claims because, pursuant to the Severin doctrine, Harper had no potential liability to KCI for project delays under the “no damage for delay” clause in their subcontract, and therefore Harper cannot “pass through” KCI’s delay claims to the government.2 The plaintiff counters that, under California law, the “no damage for delay” clause does not, as a matter of law, completely immunize Harper from potential liability to KCI, and therefore the Severin doctrine does not bar its delay claims.

For the reasons that follow, the court finds that the plaintiff has failed to present sufficient evidence to support a finding that Harper is potentially hable to KCI, and therefore the plaintiffs delay-related claims are barred by the Severin doctrine.

BACKGROUND

The background facts of this case were set forth in detail in this court’s prior decision, Harper/Nielsen-Dillingham Builders, Inc. v. United States, No. 05-269, slip op. (Fed.Cl. July 18, 2006) (“Harper I”). The specific facts relevant to this decision, taken from the plaintiffs complaint and from additional exhibits filed by both parties with their respective briefs, are set forth below.

A. Contract

On August 27, 1996, the United States Air Force awarded contract number F04684-96-C-0046 (“the contract”) to Harper with an initial contract value of $17,724,714.00. The contract required complete performance within 480 days from receipt of the Notice to Proceed, which Harper received on October 23, 1996. Def.’s Summ. J. MotApp. 1, 47. The contract called for the demolition and removal of 143 existing housing units, including asbestos removal, underground storage tank (“UST”) removal, and designated site work, and construction of 143 housing units and associated site work.

B. Subcontract

On May 6, 1997, Harper signed a subcontract with KCI which had been awarded on [670]*670April 2, 1997 (“the subcontract”).3 Compl. Ex. 1. Under the subcontract, KCI agreed to perform certain landscape and irrigation services for the total subcontract amount of $720,500.00, id., beginning on July 28, 2007 and running through January 4, 2008. Compl. Ex. 2 at 3. The subcontract between Harper and KCI contains the following clause, commonly known as a “no damage for delay” clause:

A. In the event of any delays, entailed as a result of fault of Contractor [Harper] or Owner [the United States], then Contractor [Harper] shall grant Subcontractor [KCI] an extension of time equal to the delay and Subcontractor [KCI] shall be entitled to no other or further damages against Contractor [Harper] or Owner [the United States].
B. Any delays or additional work entailed as a result of weather conditions, storms, acts of God, delays in construction, delays by governmental bodies will not entitle Subcontractor [KCI] to any extras whatsoever.

Compl. Ex. 1A at 2 ¶ 8. In addition, the subcontract contained the following provision: “All matters relating to the validity, performance, interpretation or construction of this Agreement or the breach thereof shall be governed by the laws of the State of California.” Id. at 3 ¶ 27.

Jeffrey Harper (“Mr. Harper”), the project manager for Harper who negotiated the subcontract with KCI, testified in a deposition on June 21, 2007 that, in his opinion, the “no damage for delay” clause of the subcontract “means time, not money.” Def.’s Summ. J. Mot.App. 97, 99.A. Mr. Harper also testified that the clause is part of the standard subcontract used by Harper and that it is “in there, as we are told [by counsel], to protect us as a contractor ... so we wouldn’t be, I believe, responsible for things that might be out of everyone’s control ... monetarily.” Id. at App. 100. He testified that, “on a lot of our jobs,” Harper has been verbally presented with damage claims from subcontractors to which Harper has responded by relying on the “no damage for delay” language, saying “you get time but no money from Harper.” Id. at App. 100-01.

Curtis Boutwell (“Mr. Boutwell”), the general manager for KCI who signed the subcontract on behalf of KCI, Def.’s Summ. J. Mot.App. 51, testified in a deposition on June 19, 2007 that the “no damage for delay” clause is “a boilerplate phrase that’s contained in most contracts that’s generally ignored because it’s not enforceable,” and that it is “a clause to attempt to risk shift by the general contractor ... to the subcontractor.” Id. at App. 115.

C. Alleged Delays

Harper’s progress in completing the project was delayed. According to Harper, the contractor Jacob’s Engineering (“Jacobs”) and its subcontractor VPS, Inc., working “for and under the control of’ the government, “took more time than called for to remove [USTs] and contaminated soils at the Project site. The removal of the USTs and contaminated soil was originally to have been completed prior to January 16, 1997[, but] was not actually completed until April 15, 1997,” Compl. ¶ 11; see also Def.’s Summ. J. Mot. App. 143. Nonetheless, the UST removal was completed prior to the signing of the subcontract between Harper and KCI, which took place in May 1997.

More than three months after Jacobs completed its delayed UST removal work, KCI began its landscaping activities as originally scheduled under the subcontract, on July 28, 1997, but KCI did not substantially complete the project until August 15, 1998, 223 days later than the originally scheduled completion date of January 4, 1998. Def.’s Summ. J. MotApp. 148. Harper alleges that as a result of the delays caused by the government and contractors under the government’s control, Harper and KCI had to perform the work that had been provided in the project specifications “out of sequence.” Id. at ¶ 13-15. In addition, Harper alleges that “[t]he delay caused by the removal of the USTs had a domino effect by pushing the Project into the rainy season” of late 1997 and early 1998, during which time “record-[671]*671breaking rains” occurred in the area. Id. at ¶ 19-20.

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Cite This Page — Counsel Stack

Bluebook (online)
81 Fed. Cl. 667, 2008 U.S. Claims LEXIS 120, 2008 WL 1922981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harpernielsen-dillingham-builders-inc-v-united-states-uscfc-2008.