Indiana Department of Transportation v. Shelly & Sands, Inc.

756 N.E.2d 1063, 2001 Ind. App. LEXIS 1817, 2001 WL 1264545
CourtIndiana Court of Appeals
DecidedOctober 23, 2001
Docket29A02-0103-CV-165
StatusPublished
Cited by30 cases

This text of 756 N.E.2d 1063 (Indiana Department of Transportation v. Shelly & Sands, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Department of Transportation v. Shelly & Sands, Inc., 756 N.E.2d 1063, 2001 Ind. App. LEXIS 1817, 2001 WL 1264545 (Ind. Ct. App. 2001).

Opinion

OPINION

VAIDIK, Judge.

Case Summary

This interlocutory appeal involves summary judgment rulings between the Indiana Department of Transportation (the Department) and Shelly & Sands, Inc. (the Contractor) concerning a dispute over compensation for road reconstruction work. The Department appeals the denial of its summary judgment motion. We find that the exculpatory clause contained in the contract between the Department and the Contractor limited damages resulting from any delays caused by utility relocation to an extension of the project completion date. We further find that the Indiana Tort Claims Act bars the Contractor's claim for constructive fraud and request for the remedy of estoppel. Therefore, we reverse the denial of summary judgment against the Department.

Facts and Procedural History

On January 14, 1995, the Department and the city of Carmel entered into a Local Public Agency Agreement through which the Department would administer federal funds to pay for road reconstruction work on a stretch of East 116th Street. Appellant's App. P.562. As part of the agreement, the Department was responsible for preparing the Engineer's Estimate for the project, advertising for construction bids, and awarding the contract to the most acceptable bid if it was within 5% of the Engineer's Estimate. Appellant's App. P.565. In preparation for the road reconstruction, Carmel entered into a series of utility agreements to relocate utility facilities situated along the affected stretch of roadway, which were operated by PSI Energy, Inc.; Citizens Gas and Coke Utility; Indianapolis Power and Light Company; Jones, Intercable, Inc.; Indiana Gas Company, Inc.; and Ameritech. Appellant's App. P.361-80.

*1068 Thereafter, the Department cireulated a 166-page bid package to various contractors so that they could prepare bids for the project before the Department let the contract on March 21, 1995, to the most acceptable bid. Appellant's App. P.381. The bid package referenced and made certain revisions to the Standard Specifications-a published book adopted by the Department that contains the standard specifications and general provisions for government contracts. Appellant's App. P404; 105 Ind.Admin.Code 11-1-28. Among other provisions, the bid package contained estimates on when the various utilities in the area would be able to relocate their facilities to allow for the roadwork to proceed. Appellant's App. PAll. Based on the bid package, the Contractor bid $3,803,426.26 to serve as general contractor on the project, and the Department awarded the contract to the Contractor. The Department and the Contractor finalized the Highway Contract on April 14, 1995. Appellant's App. P.283.

Before the contract was awarded, the Department held a utility coordination meeting to discuss the timetables for utility relocation in the project area. Appellant's App. P.577. At the meeting, the utilities provided the Department with the following estimates: Ameritech estimated that utility relocation would begin June 1 and conclude July 15; PSI Energy, Inc. estimated that relocation would be completed by May 81; and Indiana Gas estimated that relocation would be completed by July 1. Appellant's App. P.577. After the contract was finalized, the Department held a Preconstruction Conference that included representatives from the Contractor and the three utilities Appellant's App. P.602. At the conference, the utilities reiterated their estimates for when the relocation of their facilities along the affected stretch of roadway would be completed.

The Department then issued its Engineer's Notice to Proceed with Construction to the Contractor with a completion date for the project set for May 17, 1996. Appellant's App. P.612. The Contractor began construction on the project on May 16, 1995; however, numerous conflicts in the timetable for utility relocation delayed the construction work as a whole. While Indiana Gas was able to complete its relocation by its set date, PSI Energy did not finish utility relocation until nearly 11 weeks after its estimated completion date, and Ameritech finished relocation over three months after its estimated time of completion. Appellant's App. P.577. Based on these utility relocation delays, the Contractor requested that the completion date for the project be extended until November 1, 1996. Appellant's App. P.575. The Department agreed to extend the completion date to October 28, 1996, and released the Contractor from 165 days of liquidated damages totaling $82,500 that had accumulated from the May 17 deadline. Appellant's App. P.578-79.

Prior to completion of the project, the Contractor submitted a notice to the Department alerting the Department that it would file a claim for the additional costs arising from the delays when those costs could be fully ascertained. Appellant's App. P.28. Because the project ran 165 days past the original completion date, the Contractor later estimated that it and its subcontractors - accumulated - additional costs of $1,245,670 over the original bid price. Appellant's App. P.316. The Department denied the claim in its entirety. Appellant's App. P.559-60.

A little over one year after the project was completed, the Contractor commenced this court action against the Department for the additional costs alleging: (1) that the Department breached its contract in a number of ways by failing to cause the *1069 proper and timely relocation of the utilities; (2) that it would be inequitable for the Contractor to bear the loss caused by the delay in the utility relocation; and (8) that the Department's superior knowledge and course of conduct under the contract would secure an unconscionable advantage and constitute constructive fraud. Appellant's App. P.14-21. The Department moved for summary judgment and to strike a jury demand, and the trial court denied both motions. This interlocutory appeal ensued.

Discussion and Decision

Our summary judgment standard of review is well settled. The party appealing the denial of summary judgment has the burden of persuading this court that the trial court's ruling was improper. Zurich Am. Ins. Group v. Wynkoop, 746 N.E.2d 985, 988 (Ind.Ct.App.2001). Upon review of the denial of a motion for summary judgment, we apply the same standard as the trial court. Id. We will resolve any doubt as to fact or inference to be drawn from the evidence in favor of the party opposing the motion. Clark v. CSX Transp., Inc., 737 N.E.2d 752, 757 (Ind.Ct.App.2000), reh'g denied. Summary judgment should be granted only when the designated evidence shows that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C); Clark, 737 N.E.2d at 757. Therefore, on appeal, we must determine whether there is a genuine issue of material fact and whether the trial court has correctly applied the law. Zurich Am. Ins. Group, 746 N.E.2d at 988.

I. Breach of Contract

The Department argues that the trial court erred by refusing to grant its motion for summary judgment on the Contractor's contract claims.

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Bluebook (online)
756 N.E.2d 1063, 2001 Ind. App. LEXIS 1817, 2001 WL 1264545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-department-of-transportation-v-shelly-sands-inc-indctapp-2001.