LA Reynolds Company v. State Highway Commission

155 S.E.2d 473, 271 N.C. 40, 1967 N.C. LEXIS 1156
CourtSupreme Court of North Carolina
DecidedJuly 24, 1967
Docket524
StatusPublished
Cited by21 cases

This text of 155 S.E.2d 473 (LA Reynolds Company v. State Highway Commission) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LA Reynolds Company v. State Highway Commission, 155 S.E.2d 473, 271 N.C. 40, 1967 N.C. LEXIS 1156 (N.C. 1967).

Opinion

Parker, C.J.

On 27 February 1962, plaintiff and defendant entered into a written contract, whereby plaintiff agreed to build the roadway and structures for 4.37 miles of roadway on relocated U. S. 52 in Forsyth County, according to specifications for Project No. 8.17374, for the sum of $1,580,628.17. Completion date for the project ■was, as set out in the contract, 1 March 1963, and liquidated damages at the rate of $400 per .calendar day were to be assessed for any additional time required beyond the said completion date. Plaintiff completed the work on 24 May 1963, eighty-four daj's after the contract completion date.

*42 The actual paving of the roadway was to be done under the terms of another contract on the same project, and the completion date as established by that contract was 1 October 1963. Plaintiff was a subcontractor on the second portion of the project. The road was finally completed and opened for public use on 18 October 1963, although a portion of the road was actually opened in September, 1963.

On 26 July 1963, plaintiff wrote defendant stating that the work had been delayed in completion because of acts of defendant in failing to have rights of way properly cleared so that plaintiff’s crews could work on the job in accordance with the plan under which they submitted their bid, and acts of commission by defendant in inaccurately designing certain features of the project with the result that the designs had to be changed while the job was in process and plaintiff was delayed by defendant while such design changes were being made. Plaintiff stated that the acts of defendant had delayed plaintiff a total of 228 days on the project.

On 25 September 1963, defendant, responding to plaintiff’s letter, agreed to an allowance of twenty-four additional days, among other things stating that some of the delays referred to in plaintiff’s letter overlapped with other delays. This letter was signed by defendant’s resident engineer on the project.

Subsequently, the resident engineer’s recommendation of twenty-four days was extended by the defendant an additional nineteen days, for a total of forty-three days, and the plaintiff was assessed liquidated damages of 41 days at $400 per day, or a total of $16,400.

On 13 January 1964, defendant mailed to plaintiff a letter of “final estimate” and a warrant drawn on the State Treasurer for the balance remaining to be paid on the said project, less the sum of $16,400, a total of $24,361.43, together with an accompanying letter characterizing such payment as . . final payment of this contract.” Plaintiff received this letter and warrant on 14 January 1964.

On 22 January 1964, plaintiff wrote the defendant a letter enclosing its warrant on the State Treasurer for $24,361.43, stating: “. . . (W)e feel that, taking the language of your letter of January 13 referring to this warrant as ‘final payment of this contract’, when read in conjunction with the notation on the warrant itself, might foreclose us from any further attempt to get this matter concluded on a more favorable basis for us. Accordingly, we would be very grateful if you would modify the wording on the warrant by using some such language as ‘final estimate No. 19, less liquidated damages as claimed by Highway Commission.’ We also would appreciate your writing us in language to the effect that the State is on notice of our claim and that negotiation of this warrant will not constitute any release by us of claims which we may have against *43 the State by reason of this imposition of liquidated damages.” This letter also set forth contentions of plaintiff with respect to the merits of its case.

On 24 January 1964, defendant, by John H. Davis, State Construction Engineer, mailed a letter to plaintiff and in it returned the warrant for $24,361.43. This letter stated: “The acknowledgment of receipt and the negotiation of this warrant will not constitute any release by you with respect to any action you may desire to take as provided under the statute.” This letter and warrant were received by plaintiff 25 January 1964.

On 20 March 1964, and by verified petition received in defendant’s offices on 23 March 1964, the plaintiff filed a written and verified claim for $16,400 with the defendant, such petition setting forth in detail the facts upon which it based its claim for $16,400. This claim was rejected by defendant, and this action was instituted in the Wake County Superior Court by the issuance of summons on 18 August 1964, which summons was duly served on defendant.

On 15 September 1964, defendant filed in the office of the clerk of superior court of Wake County a motion and an answer. In its motion it moved that plaintiff’s complaint “be dismissed upon the ground that the court does not have jurisdiction of the subject matter of the action”, and in support of its motion defendant alleged, in summary, except when quoted:

(a) That this proceeding is an appeal under G.S. 136-29 from a decision of the Director of the State Highway Commission;
(b) That subsection (a) of G.S. 136-29 provides, in part, as follows:
“Upon the completion of any contract for the construction of any State highway awarded by the State Highway Commission to any contractor, if the contractor fails to receive such settlement as he claims to be entitled to under his contract, he may, within sixty (60) days from the time of receiving his final estimate, submit to the Director of the State Highway Commission a written and verified claim for such amount as he deems himself entitled to under the said contract setting forth the facts upon which said claim is based.”;
(c) That subsection (d) of G.S. 136-29 is as follows:
“The submission of the claim to the Director of the State Highway Commission within the time and as set out in subsection (a) of this section and the filing of an action in the superior court within the time as set out in subsection (b) of this section shall be a condition precedent to bringing such *44 an' action under this section and shall not be a statute of limitations.”;
(d) That a “final estimate” of the work was mailed to plaintiff on 13 January 1964 and was received by it on 14 January 1964; and
(e) That plaintiff did not submit to the Director of the State Highway Commission a written and verified claim for the amount to which it deemed itself entitled, prior to 23 March 1964, on which date defendant received from plaintiff a petition setting forth plaintiff’s claim, and therefore plaintiff has not complied with the condition precedent of submitting its written and verified claim within the 60-day period provided for in the statute.

In its answer, defendant denied the material allegations of the complaint, and alleged that the plaintiff’s complaint should be dismissed and that plaintiff should recover nothing in this action.

Plaintiff filed a reply to defendant’s motion to dismiss and answer, alleging in substance that the 60-day period did not, in contemplation of law, begin to run until 25 January 1964, when it received the final estimate and warrant the second time in a letter from defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
155 S.E.2d 473, 271 N.C. 40, 1967 N.C. LEXIS 1156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-reynolds-company-v-state-highway-commission-nc-1967.