Lueder Construction Co. v. Lincoln Electric System

424 N.W.2d 126, 228 Neb. 707, 1988 Neb. LEXIS 190
Nebraska Supreme Court·Decided June 3, 1988·No. 86-517, 86-518, 86-519·Published·Cited by 20 cases

Opinion

Caporale, J.

These appeals arise out of separate suits filed by three construction contractors, appellees Lueder Construction Company (case No. 86-517), Action Electric Company (case No. 86-518), and George H. Wentz, Inc. (case No. 86-519), against the owner, appellant Lincoln Electric System. The contractors aver they suffered damages as the result of delays which they, predictably, claim were caused through the fault of the owner. The owner in turn filed a counterclaim in each case, asserting that it suffered damages as a result of the delays which it, equally predictably, declares were the fault of the respective contractor. The district court determined that the time extensions granted by the owner entitled the contractors to the summary judgments they requested, and therefore dismissed the owner’s counterclaims. In this court the owner, in substance, claims the district court erred in determining that each contractor is entitled to a dismissal of the counterclaim against it as a matter of law. We affirm the decisions of the district court.

The owner’s contract with Lueder requires the latter to complete specified “General Construction Work” on the owner’s service center, then to be erected at 27th and Fairfield Streets in Lincoln, within “Four Hundred Fifty (450) calendar days” from August 7, 1978, that is to say, according to the parties, by October 31,1979. The contract with Action requires that it complete certain “Electrical Construction Work” at the center within “Four Hundred Fifty (450) calendar days” from August 7,1978, “which is the Contract time established” in the contract with Lueder. In like language the contract with Wentz requires that it complete designated “Mechanical Construction *709 Work” at the center within the same 450-day period.

Each contract provides for extension of the time allotted to reach substantial completion, i.e., the date when construction is sufficiently complete for the owner to occupy or utilize the work, as follows:

8.3.1 If the Contractor is delayed at any time in the progress of the Work by any act or neglect of the Owner or the Architect, or by any employee of either, or by any separate contractor employed by the Owner, or by changes ordered in the Work, or by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipatable, unavoidable casualties, or any causes beyond the Contractor’s control, or by delay authorized by the Owner pending arbitration, or by any other cause which the Architect determines may justify the delay, then the Contract Time shall be extended by Change Order for such reasonable time as the Architect may determine.

A change order is defined by paragraph 12.1.1 of each contract as

a written order to the Contractor signed by the Owner and the Architect, issued after execution of the Contract, authorizing ... an adjustment in . . . the Contract Time. The . . . Contract Time may be changed only by Change Order. A Change Order signed by the Contractor indicates his agreement therewith, including the adjustment in . . . the Contract Time.

The contractors each requested extensions of the time within which to reach substantial completion because of the delays encountered. The owner investigated the requests and ultimately issued change orders to each contractor. The orders issued to Lueder extended the latter’s contract time by 177 days, thereby changing its substantial completion date from October 31, 1979, to April 25, 1980. Although during the course of considering and negotiating the requests for the change orders, the owner suggested both a mutual waiver of damages and a reservation of its own rights, the change orders as issued to Lueder and the other contractors contained no such provisions. The owner, through its architect, has certified that each *710 contract was substantially completed on April 25,1980.

The owner correctly points out that summary judgment is proper only when the record discloses that there is no genuine issue as to any material fact or as to the ultimate inferences to be drawn from material facts, and when the moving party is entitled to judgment as a matter of law. Lowry v. State Farm Mut. Auto. Ins. Co., ante p. 171, 421 N.W.2d 775 (1988); Schriner v. Meginnis Ford Co., ante p. 85, 421 N.W.2d 755 (1988). It then argues that it cannot be said the contractors are entitled to judgments as a matter of law because determining both the cause of the delays and whether the contract was modified so as to extend the contract time depends upon the resolution of factual questions. On the other hand, the contractors contend, among other things, that ascertaining the meaning of the contracts under the circumstances of these cases is a matter of law.

We first direct our attention to the Lueder contract and begin by recognizing the correctness of the owner’s position that when it is established a contract is ambiguous, the meaning of its terms is a matter of fact to be determined in the same manner as other questions of fact; in such a situation summary judgment is improper. Luschen Bldg. Assn. v. Fleming Cos., 226 Neb. 840, 415 N.W.2d 453 (1987). The owner overlooks, however, that whether a contract is ambiguous and thus in need of construction is a question of law, and there can be no ambiguity unless and until application of the pertinent rules of interpretation leaves uncertain which of two or more possible meanings represents the true intention of the parties. Luschen Bldg. Assn. v. Fleming Cos., supra. The determination as to whether an ambiguity exists is to be made on an objective basis, not by the subjective contention of the parties; thus, the fact that the parties urge opposing interpretations does not necessarily indicate a document is ambiguous. Luschen Bldg. Assn. v. Fleming Cos., supra. Finally, a written contract which is expressed in clear and unambiguous language is not subject to interpretation or construction, and the intention of the parties must be determined from the contents of the document alone. State ex rel. NSBA v. Douglas, 227 Neb. 1, 416 N.W.2d 515 (1987); Washington Heights Co. v. Frazier, 226 Neb. 127, 409 *711 N.W.2d 612 (1987). In short, the meaning of an unambiguous contract presents questions of law. Washington Heights Co. v. Frazier, supra. See, also, Ames v. George Victor Corp., ante p. 675, 424 N.W.2d 106 (1988).

Paragraph 8.3.1 of the contract in question provides a procedure whereunder the contractor may obtain an extension of the contract time, and further provides that the contract time shall be extended by a change order which is defined in paragraph 12.1.1.

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Lueder Construction Co. v. Lincoln Electric System, 424 N.W.2d 126, 228 Neb. 707, 1988 Neb. LEXIS 190 (Neb. 1988).

424 N.W.2d 126 (Lueder Construction Co. v. Lincoln Electric System) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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