Hendry Corp. v. Metropolitan Dade County

648 So. 2d 140, 1994 WL 454881
CourtDistrict Court of Appeal of Florida
DecidedJanuary 4, 1995
Docket92-44
StatusPublished
Cited by2 cases

This text of 648 So. 2d 140 (Hendry Corp. v. Metropolitan Dade County) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hendry Corp. v. Metropolitan Dade County, 648 So. 2d 140, 1994 WL 454881 (Fla. Ct. App. 1995).

Opinion

648 So.2d 140 (1994)

HENDRY CORPORATION, a Florida corporation, Appellant,
v.
METROPOLITAN DADE COUNTY, a political subdivision of the State of Florida, Appellee.

No. 92-44.

District Court of Appeal of Florida, Third District.

August 24, 1994.
Order Denying Rehearing January 4, 1995.

Charles S. Dale, Jr., and Richard L. Halpern, Ft. Lauderdale, Smith & Fleming and George D. Weniock, Peter M. Crofton and Kent Smith, Atlanta, GA, for appellant.

Robert A. Ginsburg, Dade County Atty., and Jay W. Williams, Asst. County Atty., for appellee.

Before BARKDULL[1], BASKIN, and JORGENSON, JJ.

ON MOTION FOR REHEARING GRANTED

JORGENSON, Judge.

On consideration of Dade County's motion for rehearing, we grant the motion, withdraw our opinion filed October 26, 1993, and substitute the following opinion in lieu thereof.

The Hendry Corporation appeals from a final judgment finding that Dade County is *141 not liable for additional costs incurred on a public project to demolish the old Rickenbacker Causeway connecting Key Biscayne to the mainland. We affirm.

Dade County solicited bids to demolish the old Rickenbacker Causeway bascule span and provided all bidders with a set of demolition plans and specifications for the project. The 1941 plans of the original bascule span were made available to the bidders for inspection before the bid deadline. Hendry submitted the lowest bid and the County awarded it the contract in December, 1985. Hendry's bid was based on its conclusion that the pilings supporting the old bridge were made of concrete. This conclusion was based upon visual observations, past experience, and an examination of the 1941 bascule plans.

Hendry encountered problems with the demolition and failed to complete the project within the time period specified by the contract. The County withheld $81,900 of the contract proceeds as damages for delayed completion. Hendry sued Dade County for breach of contract, alleging that the County was liable for costs that arose from unexpected site conditions. Specifically, Hendry alleged that after it started work on the project, it encountered two differing site conditions that required an equitable adjustment of the contract price.[2] The first differing site condition alleged was the existence of wooden, rather than concrete pilings. Hendry contended that Dade County had an obligation to provide the bidders with the 1941 specifications for the bascule which would have shown that the pilings were wooden. Demolition of structures supported by wood pilings is more difficult than demolition of structures supported by concrete pilings. The second differing site condition that Hendry alleged made demolition more difficult and therefore more expensive was subsurface debris that remained from the original construction project. Hendry claimed that Dade County was aware of the debris but failed to notify the bidders.

Hendry asked the trial court to instruct the jury that Dade County had a duty to disclose to prospective bidders all available information relating to the project, and to warrant that the plans and specifications provided were full, complete, and accurate. The trial court denied Hendry's request; the jury returned a verdict for the County.

The trial court properly declined to instruct the jury as Hendry requested, as the requested instructions did not provide an accurate statement of the law concerning Dade County's duty to disclose. See Giordano v. Ramirez, 503 So.2d 947, 949 (Fla. 3d DCA 1987) (requested instructions must contain accurate statement of law, and facts of case must support giving those instructions).

In seeking reversal, Hendry asks this court to impose upon Dade County a duty heretofore not recognized in Florida — that Dade County had an obligation to disclose facts in its possession when its superior knowledge or silence would convey a false impression, even when it has made no affirmative misrepresentation. However, our courts have recognized only that the government has an affirmative duty to provide bidders with information that will not mislead them. Jacksonville Port Auth. v. Parkhill-Goodloe Co., 362 So.2d 1009 (Fla. 1st DCA 1978); Town of Longboat Key v. Carl E. *142 Widell & Son, 362 So.2d 719 (Fla. 2d DCA 1978). See also Champagne-Webber, Inc. v. City of Fort Lauderdale, 519 So.2d 696 (Fla. 4th DCA 1988). The law in Florida also provides that where a contractor is misled by relying on inaccurate representations, a disclaimer clause requiring inspection of the site will not prevent the contractor from recovering additional costs under a differing site conditions clause. Jacksonville Port Auth., 362 So.2d at 1012 (citing United States v. Atlantic Dredging Co., 253 U.S. 1, 40 S.Ct. 423, 64 L.Ed. 735 (1920)); Miami-Dade Water & Sewer Auth. v. Inman, Inc., 402 So.2d 1277 (Fla. 3d DCA 1981), rev. denied, 412 So.2d 466 (Fla. 1982). However, a differing site conditions clause will be "triggered only where an inaccurate representation is relied on, not where there has been no representation." Inman, 402 So.2d at 1278 n. 2 (emphasis supplied). Moreover, in the absence of such misrepresentation, there will be no recovery under the differing site conditions clause if the contractor relies on its own inadequate investigation. Inman, 402 So.2d at 1278 n. 2.

Under the prior standard established by Florida cases, Dade County breached no duty to prospective contractors; it did not represent any material fact to the contractor that later turned out to be false. In Jacksonville Port Auth., the Port Authority furnished the contractor with boring reports that indicated that there was no significant rock in the area to be dredged. The Port Authority, however, was on notice that rock was in the area because another dredging contractor in an earlier project for the Port Authority encountered extensive rock in an adjacent area. The contract guaranteed that the information provided in the boring reports gave a general indication of the materials likely to be found. The court held that there was a duty to furnish information which would not mislead prospective bidders and found that the Port Authority misled the contractor by providing the boring reports knowing that they were inaccurate. Jacksonville Port Auth., 362 So.2d at 1013.

In Town of Longboat Key, the contractor also relied on misleading information provided by the town. To prepare its bid, the contractor relied on a subsurface soil analysis and an investigation provided by the town. The investigation indicated that the excavations could be kept dry by using the well pump method of dewatering. The contract specifications called for dewatering by the method suggested in the investigation. When the contractor began excavating, however, it encountered a high water level, and as a result, it had to use another more expensive method of dewatering. The court, recognizing that the contract contained a differing site conditions clause, held that the contractor could recover the additional costs even though the contract also contained an exculpatory clause requiring the contractor to examine the construction site. Town of Longboat Key, 362 So.2d at 722. These decisions simply do not stand for the proposition that the governmental entity has a duty to disclose all information in its possession that may be material to the bidding process.

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Cite This Page — Counsel Stack

Bluebook (online)
648 So. 2d 140, 1994 WL 454881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hendry-corp-v-metropolitan-dade-county-fladistctapp-1995.