Miller Elevator Co. v. United States

39 Cont. Cas. Fed. 76,635, 30 Fed. Cl. 662, 1994 U.S. Claims LEXIS 37, 1994 WL 60635
CourtUnited States Court of Federal Claims
DecidedFebruary 24, 1994
DocketNo. 90-154C
StatusPublished
Cited by91 cases

This text of 39 Cont. Cas. Fed. 76,635 (Miller Elevator 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
Miller Elevator Co. v. United States, 39 Cont. Cas. Fed. 76,635, 30 Fed. Cl. 662, 1994 U.S. Claims LEXIS 37, 1994 WL 60635 (uscfc 1994).

Opinion

OPINION

YOCK, Judge.

This Government contract dispute arose out of an elevator maintenance contract between Miller Elevator Company, Inc. (Miller), and the General Services Administration (GSA). The contract required the provision of elevator maintenance services for a federal office building in St. Louis, Missouri. Sixteen months after the execution of the contract, and without prior notice to Miller, the GSA authorized substantial renovation to the building. Following the commencement of the building renovation, the plaintiff claims that the amount and extent of work required to maintain the building elevators exceeded the scope of the maintenance contract. For the nondisclosure of the contemplated renovation of the building, the plaintiff seeks an equitable adjustment for the additional maintenance required for compliance with the contract terms, and for the extent of additional repairs also required by the renovation, the plaintiff further seeks recoupment of these costs as changes to the contract. The defendant rebuts these claims on the basis of the failure to secure the written approval of the contracting officer for work considered outside of the scope of the contract, the lack of authority for the instructions to perform certain repairs and additional maintenance work, and the otherwise general noncompliance with the terms and conditions of the contract in adhering to the maintenance requirements and responding to repair requests for the elevator systems within the building.

After a trial on the liability and damages, and upon consideration of the entire record, including oral and documentary evidence, as well as appropriate pre- and post-trial briefings, this Court concludes that the plaintiff prevails in this action. For the reasons stated herein, this Court finds that the Government breached the implied duty of good faith and fair dealing by the nondisclosure of superior knowledge regarding the fact that the [666]*666GSA had anticipated the letting of a $42 million contract for the renovation of this federal office building after contracting with the plaintiff for elevator maintenance services. Moreover, in view of the prior course of dealing between the GSA and this elevator maintenance contractor, this Court further concludes that the amount and extent of repair work subsequently required by the GSA extended well beyond the scope of the contract and thus comprised constructive changes to the contract.

In view of these affirmative liability findings, this Court likewise affirms the damages claimed by the plaintiff. Accordingly, this Court grants the plaintiff an equitable adjustment in the amount of $75,615.21, plus costs.

Facts

On June 18, 1986, the parties to this suit executed GSA contract No. GS06P86GXC0066 (the Mart contract). The contract encompassed a term of three years, from July 1,1986 through June 30,1989, and carried an annual price of $70,980, divisible into a monthly service fee of $5,915. The contract provided for elevator maintenance and call-back services within the Mart Office Building (the Mart building), a federal office building in St. Louis, Missouri, renamed the Robert A. Young Federal Building after renovation. Constructed in 1932, the fifty-year old building provided office space for federal workers in the St. Louis area and contained fourteen elevators to service these personnel. Although the initial elevator systems dated to 1932, the GSA upgraded all of the elevators during the 1960’s.

The contract at issue required the provision of regular and routine maintenance for all of the elevators in the Mart building. The building is comprised of a dual-level highrise, with one ten-story structure adjacent to another six-story structure. Eight elevators serviced the taller structure while another six elevators serviced the smaller six-story structure. In all, the Mart building contained eleven passenger elevators (Nos. 1, 2, 3, 4, 5, 7, 8, 9, 12, 13, and 14) and three freight elevators (Nos. 6, 15, and 18). Since 1977, less one intervening term from 1980 through 1983, Miller had provided the elevator maintenance services for all of the elevators within the Mart building to the satisfaction of the GSA. Miller had, in fact, provided these services as the elevator maintenance contractor for the immediately preceding contract.

On July 1, 1986, Miller began performance on the instant contract. Almost one year later, during late June of 1987, the GSA or persons under the direction of the GSA initiated mobilization activities in preparation for the renovation of the Mart building. Yet, from the time of execution of the instant contract in July of 1986, the GSA had disclosed nothing about the anticipated renovation before the initiation of these activities. Mobilization, and even some demolition, had begun before the GSA had provided any formal notice of the plans for renovation of the Mart building to the elevator maintenance contractor.

On June 30, 1987, the GSA first informed Miller of the intended renovation. On this date, pursuant to the ensuing demolition and replacement of certain elevators, the GSA instructed Miller to delete all the elevators in the ten-story high-rise from the contract. Under this partial termination for convenience, the GSA required termination of maintenance and call-back services to the eight elevators in the ten-story high-rise but retained the contract as to the six elevators in the six-story high-rise. Nevertheless, although Miller submitted a downward price adjustment on July 9, 1987, the GSA delayed the termination for convenience until November 10, 1987, four days after securing a construction contractor for the renovátion.

On November 6, 1987, some five months after the initiation of mobilization and demolition activities at the Mart braiding, and sixteen months after the execution of the contract at issue, the GSA finally executed a formal renovation contract for $42 million with the J.S. Alberici Company (Alberici) for the refurbishment and remodeling of the Mart braiding. Due to the scope of the mobilization and the extent of demolition required by the''renovation, the Alberici contract resulted in a substantial and detrimental impact upon the elevator systems within [667]*667the Mart building. As a result, on May 31, 1989, GSA terminated the instant Mart contract for the convenience of the Government.

On July 6, 1988, and later in a certified claim dated October 24, 1988, Miller submitted a claim for an equitable adjustment to the contracting officer for the Mart contract. This claim sought the extra maintenance costs associated with the mobilization, demolition, and renovation activities, as well as the extraordinary costs of major repairs to various components of the elevator systems in the Mart building. Following the denial of the claim on February 17, 1989, Miller brought suit in this Court.

Mechanics of an Elevator System

To ascertain the type of work required under the instant contract, including regular and routine elevator maintenance as well as call-back services for corrections and repair, it is helpful to review an elevator system and the mechanical requirements for the proper operation thereof.

A typical elevator system includes an elevator shaft in which an elevator car moves, a motor room atop the shaft, and an elevator pit below the shaft. The elevators in the Mart building conform to this generalized elevator system. The elevator shafts in the building contain “traek-on-rail” systems on which the elevator cars ride during assent and descent.

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Cite This Page — Counsel Stack

Bluebook (online)
39 Cont. Cas. Fed. 76,635, 30 Fed. Cl. 662, 1994 U.S. Claims LEXIS 37, 1994 WL 60635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-elevator-co-v-united-states-uscfc-1994.