Maryland Casualty Co. v. City of Seattle

116 P.2d 280, 9 Wash. 2d 666
CourtWashington Supreme Court
DecidedAugust 6, 1941
DocketNo. 27900.
StatusPublished
Cited by21 cases

This text of 116 P.2d 280 (Maryland Casualty Co. v. City of Seattle) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Casualty Co. v. City of Seattle, 116 P.2d 280, 9 Wash. 2d 666 (Wash. 1941).

Opinion

Driver, J. —

Felix Arcorace and Joe Coluccio, contractors, completed some sewer construction work for the city of Seattle, and the surety on their bond brought this action to obtain an adjudication of the claims against the retained percentage of their pay. The contractors and their assignee, The National Bank of Commerce of Seattle, cross-complained against the city for additional compensation. The city, by its answer, denied further liability and asserted a counterclaim against the contractors for water, electric power, inspection, and other charges. By stipulation of the parties, the controversy between them on the issues thus framed was separated, for the purpose of trial, from other claims and controversies in the case. After a trial to the court, the contractors were awarded recovery on four of the eight items of the cross-complaint, the city was granted a partial offset on its counterclaim, and findings and judgment were entered accordingly. The contractors and the bank appealed because of the rejection of their principal claim, based upon the added cost of the construction of a portion of the tunnel section of the project by the use of compressed air. The city cross-appealed as to three of the four *668 items on which judgment was entered in favor of the contractors.

We shall not vary the designation of the parties on account of the cross-appeal. For convenience throughout the rest of this opinion, the contractors will be called the appellants and the city of Seattle the respondent.

The pertinent facts on the original appeal may be summarized as follows:

November 26, 1935, in furtherance of a comprehensive plan to divert sewage from Lake Washington to a salt water outlet through the Duwamish waterway, the respondent published a call for bids, to be submitted on December 11th, for the construction of Henderson street trunk sewer, units Nos. 3, 4, 6, and 7. The appellants examined the plans and specifications prepared by the respondent, as well as the site of the work, and submitted a bid. It was accepted, the contract was signed, and, on January 6, 1936, the city engineer notified the appellants to start operations.

The appeal involves only unit No. 4, which consisted of the construction of a sixty-inch monolithic concrete sewer in a tunnel on Empire way, from Merton way north to a point a short distance south of Henderson street, and a forty-eight-inch brick sewer in a tunnel from that point north to Henderson street, thence east along that street to Forty-sixth avenue south. The bottom of the concrete sewer, at its greatest depth, was to be about fifty feet below the surface. Empire way extends southward from Henderson street on a down grade through a depression between two hills known as Dunlap canyon. There had been no test drilling or other exploratory excavation in this area, and subterranean conditions were unknown to both the contracting parties.

The appellants started excavation through a shaft, *669 which they sank to the tunnel level on Henderson street, about a hundred and twenty-five feet east of Empire way. Working both ways from this shaft, they finished the forty-eight-inch sewer without difficulty. They then drove the tunnel south on Empire way to the vicinity of Beacon street, which was slightly less than half way from Henderson street to the south end of the tunnel section. There, they encountered ground so wet and soft that they could proceed no farther. The same ground conditions frustrated their repeated attempts to work through shafts on Empire way, and prevented them from making any substantial progress at the south end'of the tunnel section.

In June, 1936, the appellants requested a change order that would permit them to construct the south five hundred feet of the sewer in an open cut instead of a tunnel. The respondent granted the request, but no agreement was reached as to the details, and the plan was abandoned. The appellants then installed an air lock at the south portal, and excavated the remainder of the tunnel section, 1,174 feet of the total distance of 3,798 feet, by the use of compressed air. It is not disputed that the method adopted was necessary under the circumstances, and that it greatly increased the appellants’ costs.

The appellants claim that they are entitled to recover this added expense as an outlay beyond the calls of the contract. They contend that both parties contemplated the tunnel section would be a normal, “free air” job; that certain provisions of the respondent’s plans and specifications embodied in the contract constituted an implied warranty that it would not be necessary to resort to the compressed air method in excavating the tunnel; and that the plans and specifications were insufficient and defective because it was *670 physically impossible to do the work in accordance with the methods which they prescribed.

The basic principle of law on which their contentions rest is concisely stated in the following excerpt from an extensive annotation in 76 A. L. R. 268, 269:

“The general rule may be deduced from the decisions that where plans or specifications lead a public contractor reasonably to believe that conditions indicated therein exist, and may be relied upon in making his bid, he will be entitled to compensation for extra work or expense made necessary by conditions being other than as so represented.”

The principle has been applied in, numerous cases. Two typical and leading ones are Hollerbach v. United States, 233 U. S. 165, 58 L. Ed. 898, 34 S. Ct. 553, and United States v. Atlantic Dredging Co., 253 U. S. 1, 64 L. Ed. 735, 40 S. Ct. 423. The Hollerbach case involved specifications which definitely stated that the dam, which was to be repaired, was backed by broken stone, sawdust, and sediment. The backing, in fact, consisted of cribbing of sound logs filled with stones concealed beneath an upper layer of soft sediment. It was held that the contractors were entitled to recover for the additional cost of excavating this material, notwithstanding a clause of the specifications directing prospective bidders to inspect the locality of the work and to make their own estimates of the difficulties to be encountered.

In the Atlantic Dredging Co. case, it was likewise held that a contractor should have extra compensation to cover expenses incurred in reliance upon misleading representations in a government contract. There, the specifications stated that “ ‘the material to be removed is believed to be mud, or mud with an admixture of fine sand.’ ” Bidders were admonished to “ ‘examine the work, however, and decide for themselves as to its character ... as the United States does not guar *671 antee the accuracy of this description.’ ” Bidders were also invited to inspect maps prepared by government officers showing the result of test borings in the area to be dredged. These maps did not disclose that, when the tests were made, in some instances the probe had struck impenetrable material.

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116 P.2d 280, 9 Wash. 2d 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-casualty-co-v-city-of-seattle-wash-1941.