In re Miami Conservancy Dist.

2025 Ohio 116
Ohio Court of Appeals·Decided January 17, 2025·No. 30193·Published·Cited by 1 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

IN THE MATTER OF: THE MIAMI : CONSERVANCY DISTRICT :

: C.A. No. 30193

:

: Trial Court Case No. 36847 :

: (Civil Appeal from Common Pleas : Court)

:

:

...........

OPINION

Rendered on January 17, 2025 ...........

JASON P. CONTE & EMILY H. DAVIS, Attorneys for Appellant GREGORY J. DEGULIS & LEE A. SLONE, Attorneys for Appellee .............

EPLEY, P.J.

{¶ 1} Sunesis Construction Company appeals from the trial court’s judgment overruling Sunesis’s motion for partial summary judgment and granting summary judgment to the Miami Conservancy District (MCD) on Sunesis’s claims and on MCD’s counterclaim. For the following reasons, the trial court’s judgment will be affirmed in part,

reversed in part, and remanded for further proceedings regarding Payment Items 11, 20, and 26.

I. Facts and Procedural History {¶ 2} The following facts are undisputed. The MCD, established after the 1913 flood, is a public organization responsible for flood protection in the Great Miami River watershed. Between 1918 and 1922, MCD constructed five dry dams along major waterways – the Lockington, Germantown, Englewood, Taylorsville, and Huffman Dams.

{¶ 3} Given the technology at the time, the concrete used in the dams’ construction was highly susceptible to deterioration from freezing and thawing in the presence of moisture. Over time, it has suffered deterioration in the form of cracking, spalling, and delamination. Some surface repairs were performed in the 1970s using shotcrete, but those repairs have delaminated as well and the original concrete has continued to deteriorate. See O’Connor Dep., Ex. 10. Due to the dams’ aging infrastructure, MCD had a pilot concrete repair project performed on the southwest abutment wall (downstream right side, when looking downstream) of the Lockington Dam in 2017, with a report issued in February 2018. Id.

{¶ 4} In 2019, MCD sought bids for the Lockington Dam Right Wall Drain System and Concrete Repair Project (“the Project”), Contract No. 2019-021C, which primarily focused on repairing the right spillway walls. On October 11, 2019, MCD hired Sunesis for the Project; the original agreed cost was $2,614,347. MCD Motion for Summary

Judgment (MSJ), Ex. K. MCD subsequently agreed to pay an additional $62,896.84 in two change orders. MCD MSJ, Ex. L.

{¶ 5} The Contract consisted of several complementary documents. General Condition 35 set forth an order of precedence for the contract documents: (1) Contract, (2) Change Orders, (3) Addenda, (4) Detailed Specifications, (5) Plans/Drawings, (6) General Conditions, (7) Proposal, (8) Instructions to Bidders, (9) Other documents specifically referenced in the Contract, and (10) ODOT Specifications. In the event of a conflict between the documents, the interpretation of MCD’s Engineer governed. GC- 35.

{¶ 6} Sunesis’s tasks were delineated in 35 Payment Items, which were part of the Detailed Specifications. For each Payment Item, the Contract provided a general description of the work to be performed, a description of any required submittals, any material requirements, any required methods and processes, and instructions on measurement and payment. Final payment for the contract was based on “actual quantities realized and unit prices of payment items.” GC-17 (Final Payment); O’Connor Dep. 46.

{¶ 7} The Contract also contained 36 General Conditions. Of particular relevance here, GC-8 provided:

GC-8. Direction of Work and Interpretation of Plans and Specifications It is mutually agreed that the ENGINEER shall have the right to direct the manner in which all work under this Contract is to be conducted, insofar as may be necessary to secure the safe and proper progress and quality of the

work. Upon all questions concerning the execution of the work, interpretation of the Specifications and Plans, determination of all quantities and amounts of work done, the decision of the ENGINEER shall be final and binding on both parties, and compliance with its estimates and decisions shall be a condition precedent to the right of the CONTRACTOR to receive any payment under the Contract.

(Emphasis added.) The term “Engineer” was defined as MCD’s Chief Engineer or properly authorized agents. GC-1 (Definitions). It included the terms “owner’s representative,” “project manager,” and “consultant.” Throughout the contract, Donald O’Connor served as project manager for MCD.

{¶ 8} Sunesis agreed to begin work within 10 days after the date of the Notice of Commencement and to complete the Project within 180 days, unless extended by a written change order. The initial project completion date was April 11, 2020.

{¶ 9} A week after contracting with Sunesis, MCD hired DLZ, its design engineer consultant, to provide construction administration, concrete and materials testing, and as needed construction-phase engineering services. MCD MSJ, Ex. B. O’Connor testified that he and DLZ were the “Engineer” for the Project. O’Connor Dep. 45. For the majority of the time, Kyle Sparks of DLZ served as an observer engineer, documenting what happened each day, taking measurements, and performing testing. MCD’s contract with DLZ expired prior to the completion of the project. At that point, Jim Kittel of MCD assumed Sparks’s role. O’Connor Dep. 26.

{¶ 10} By a written change order in June 2020, the Project deadline was extended

to July 30, 2020. Sunesis substantially completed its work in the spring of 2021.

{¶ 11} On November 12, 2021, Sunesis filed suit against MCD, raising claims of breach of contract, unjust enrichment, and promissory estoppel. Sunesis alleged that it had fulfilled all conditions and obligations under the Contract and that MCD had breached the agreement by failing to pay Sunesis for work performed under Payment Items 11 (concrete apron), 20 (concrete), 26 (concrete revetment), and 31 (patching concrete structure). The company further alleged that it had performed additional concrete work for which MCD had been unjustly enriched.

{¶ 12} In its answer, MCD asserted that Sunesis had been paid in full for the work it performed and denied that Sunesis was entitled to any additional compensation. MCD also asserted a counterclaim for expenses incurred due to Sunesis’s failure to complete the Project on time.

{¶ 13} In December 2021, the parties agreed to Change Order #2, which modified some aspects of the Project and increased the contract amount, but did not expressly extend the July 30, 2020 completion deadline. The parties also signed an “Agreement on Change Order #2” in which they agreed that the change order and the payment made by MCD to Sunesis “shall not affect or impact, nor shall these actions act as a waiver of the claims or defenses of Sunesis or MCD in the litigation.” O’Connor Dep., Ex. 12.

{¶ 14} After extensive discovery, Sunesis filed a motion for partial summary judgment on Payment Item 31. MCD countered with its own motion for summary judgment on all of Sunesis’s claims, as well as a motion for summary judgment on its counterclaim.

{¶ 15} On June 4, 2024, the trial court granted MCD’s motions and denied Sunesis’s motion. The trial court found that the language of the contract was clear and unambiguous as to the requirements and the manner of determining compensation: compensation was to be determined by field measurements and the approval of the MCD Engineer. The court further found that the contract provided that any disputes were to be resolved by the MCD Engineer, whose decision was final and binding. The court concluded that, because the Engineer did not approve the after-payment measurements submitted by Sunesis, Sunesis was paid in conformity with the terms and conditions of the contract. The trial court further found no dispute that Sunesis had failed to timely complete the Project, causing MCD to incur additional costs of $110,319.82, plus an additional amount not to exceed $3,590 for the expense of obtaining as-built drawings.

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In re Miami Conservancy Dist., 2025 Ohio 116 (Ohio Ct. App. 2025).

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