Laforge & Budd Construction Co. v. United States

48 Fed. Cl. 566, 2001 U.S. Claims LEXIS 8, 2001 WL 96548
CourtUnited States Court of Federal Claims
DecidedFebruary 2, 2001
DocketNo. 98-695C
StatusPublished
Cited by5 cases

This text of 48 Fed. Cl. 566 (Laforge & Budd Construction Co. 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
Laforge & Budd Construction Co. v. United States, 48 Fed. Cl. 566, 2001 U.S. Claims LEXIS 8, 2001 WL 96548 (uscfc 2001).

Opinion

OPINION

MILLER, Judge.

This contract dispute is before the court on defendant’s motion for summary judgment upon the basis of laches. The contractor’s global complaint, which alleges that the Government breached its contractual duties of good faith and fair dealing throughout the performance of the contract, was filed approximately seven years after substantial completion of the contract work. The issues to be resolved are (1) whether the contractor’s delay was reasonable and excusable and (2) whether the delay has prejudiced the Government’s defense. Argument is deemed unnecessary.

FACTS

The following facts that are material are undisputed, unless otherwise noted, and all inferences have been drawn in favor of plaintiff as opponent. LaForge & Budd Construction Co. (“LaForge” or “plaintiff’), is a small business contractor that was awarded contract number DACA56-86-C-0074 from a sealed bid procurement by the U.S. Army Corps of Engineers (the “Corps”) in September 1986. The contract was for the building of a transient munitions facility, including a taxiway, staging area, underground igloos, munitions shop facility, munitions magazines, access roads, and other related features (the “project”) at Tinker Air Force Base (“Tinker”) in Oklahoma. The contract required completion of the work within 595 calendar days of the Notice To Proceed receipt date, which was October 9,1986.

Conflict plagued the project from the beginning. Early in the performance of the project, Thomas Logsdon, the Corps Area Engineer for Tinker, instructed the inspectors working under him to make life difficult for plaintiff. In 1987 Frank Mendoza, the initial Corps Construction Representative for the Transient Munitions Facility, resigned for fear that the project “wasn’t going to be anything but a pissing battle between Tom Logsdon and D.E. Abbott [plaintiffs project vice-president]” and he did not want to get caught in the middle.1 Deposition of Jerry Lawson [undated extracts], at 41. Jerry Lawson replaced the vacancy left by Mr. Mendoza, which involved ensuring contract compliance. According to Mr. Lawson, contract compliance on this project was inspected “much more stringently than was ever done anywhere in 22 years ____” Lawson Dep. at 287. On May 4, 1987, Mr. Lawson wrote a memorandum for record (the “May 4 memorandum”) recording, in part, that Mr. Logsdon had given him “specific instructions concerning this particular contract.” The [568]*568May 4 memorandum reported Mr. Logsdon as saying, “ T want you to tighten down on those bastards and run them off Tinker Air Force Base within thirty days.’ ”2

Plaintiff charges that the Corps created problems and delays to the project, presumably resulting from Mr. Logsdon’s instructions. The foreman of plaintiffs earthwork crew, Raymond L. Breeden, stated that during winter 1987, a Corps inspector told him that LaForge would probably be gone in 30 days, and that “pretty well everybody on the job knew that ... there was an immediate direction that we were going to be run off the job.” Deposition of Raymond L. Breeden, Mar. 22, 2000, at 25-26. Mr. Breeden elaborated that the behavior of the Corps was consistent with what he had been told about the intent to run LaForge off the project in that the Corps found problems with “all kinds of little things that they nitpicked you to death on .... ” Id. at 26. For example, the Corps rejected plaintiffs Quality Control Program and required that all work be stopped until it was revised, even though the program was similar to those used successfully on previous Corps contracts. Plaintiff also charged that the Corps delayed acquisition of excavation permits, acquisition of data required from the Corps to erect a boundary fence, approval of plaintiffs Network Analysis System, and coordination of patrol road closures that were required by the contract.

As a result of the frequency and number of the construction problems, plaintiff hired an engineering consultant, William F. Connole, to assist in the volume of paperwork regarding construction incidents.3 Plaintiff also employed its attorney, S. Leo Arnold, as a “management consultant ... throughout the duration of the project.” Mr. Connole testified that by the spring of 1987 Mr. Abbott was frustrated with the lack of cooperation. Deposition of William F. Connole, Sept. 15, 1999, at 159. From his perspective, “there was going to be an overinspection-type claim on the job as early as the spring of [19]87.” Id. at 158. Plaintiff, however, maintains that in 1987 it was still attempting to avoid a claim.

Performance interference problems allegedly continued throughout the duration of the project, resulting in “fifty-two individual Government caused impacts and delays ... which overlapped with each other.” Pl.’s Br. filed Oct. 31, 2000, at 4. Plaintiff notified the Corps on multiple occasions of the problems experienced during construction. On December 4,1987, plaintiff submitted a proposal for an equitable adjustment of $70,925.17 attributed to unsatisfactory materials. The Corps notified plaintiff on September 2,1988, and again on November 23, 1988, that plaintiff was required to certify proposals for more than $100,000.00 (although plaintiffs claim was for less) and that the proposal would not receive consideration until it had been certified.

In May 1989 Messrs. Abbott and Connole met with Mr. Lawson.4 Mr. Lawson played segments of a tape recording from a Corps staff meeting in which Mr. Lawson had participated. Connole Dep. at 45; Lawson Dep. at 354, 374, 379-82. The tape was consistent with what Mr. Lawson had written in the May 4 memorandum, and he played the tape because he felt he “had to look at every possible avenue [he] could take to protect [himself].” Lawson Dep. at 380-82.

Plaintiffs initial request for Corps documents under the Freedom of Information [569]*569Act, 5 U.S.C.A. § 552 (West 1994 & Supp. 1999) (the “FOIA”), dated May 17, 1989, was rejected. After the meeting with Mr. Lawson, plaintiff made another FOIA request dated June 9, 1989, which was supplemented by letter dated July 19, 1989. The Corps provided some documents on August 21, 1989, including the May 4 memorandum, but noted that certain requested documents had been forwarded to the Initial Denial Authority in Dallas, Texas, for “a determination of their releasability.”

On August 23, 1990, Mr. Logsdon sent a letter to plaintiff regarding the December 4, 1987 equitable adjustment proposal, stating in part:

You have not provided some of the items that were requested from you in excess of two (2) years ago. From this, I can only assume that you either have no such materials or you have decided not to pursue them. Otherwise, you would have provided them to the Government long ago so as not to taint the materials with so much age that all parties have forgotten the facts.

Mr. Abbott responded on behalf of plaintiff in a September 14, 1990 letter stating that the Corps letter was “innocuous, self-serving, and false” because plaintiff had complied with all requests and that the Corps should provide documentation of any requests it believed to be outstanding. He reminded the Corps of the correspondence that was hand delivered on August 24, 1990, advising the Corps that plaintiff intended to file a claim covering the entire project. Mr.

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Bluebook (online)
48 Fed. Cl. 566, 2001 U.S. Claims LEXIS 8, 2001 WL 96548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laforge-budd-construction-co-v-united-states-uscfc-2001.