Miller Trucking, LLC v. APAC Mid-South, Inc.

122 So. 3d 168, 2013 WL 135739, 2013 Ala. LEXIS 7
CourtSupreme Court of Alabama
DecidedJanuary 11, 2013
Docket1110724
StatusPublished

This text of 122 So. 3d 168 (Miller Trucking, LLC v. APAC Mid-South, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller Trucking, LLC v. APAC Mid-South, Inc., 122 So. 3d 168, 2013 WL 135739, 2013 Ala. LEXIS 7 (Ala. 2013).

Opinion

PARKER, Justice.

Miller Trucking, LLC, Ben Miller, and Miriam Miller (hereinafter collectively referred to as “the Miller plaintiffs”) appeal a summary judgment in favor of APAC Mid-South, Inc. (“APAC”), Oldcastle Materials, Inc. (“Oldcastle Materials”), and Steve Reynolds (hereinafter collectively referred to as “the defendants”). We reverse the judgment and remand the case.

Facts and Procedural History

The facts of this appeal are based on contracts between the Alabama Department of Transportation (“ADOT”) and APAC and between APAC and Miller Trucking. APAC is an aggregate-supply company with quarries in Alabama; Reynolds is APAC’s sales manager for materials in Alabama. As will be discussed in greater detail below, ADOT hired APAC to provide aggregate materials for distribution to counties, and APAC, in turn, hired Miller Trucking to haul the aggregate materials to the counties purchasing [170]*170the aggregate materials from the State. Of particular importance to this appeal are adjustments to the compensation APAC paid Miller Trucking based on the cost of fuel during the times relevant to this appeal.

The Miller plaintiffs’ complaint set forth the following undisputed facts:

“In 2007, [ADOT] offered county governments in Alabama road building materials at uniform prices. [ADOT] solicited competitive bids from materials companies to cover the cost of the material and the hauling cost which varied depending on the location of the bidder’s quarry and other factors. For example, a bidder might bid $14 to buy and haul rip rap rock from the Alexander City quarry to Coosa County but might bid $26 to haul the same material to a distant county such as Clarke County.”

In order to submit a bid to ADOT, APAC sought proposed bids for statewide, county-by-county hauling rates from various trucking companies, including Miller Trucking. Using Miller Trucking’s bid to APAC, APAC submitted its bid to ADOT. At the time Miller Trucking submitted its bid to APAC it was unaware that the contract eventually entered into by ADOT and APAC would include a fuel-price-adjustment clause.

On June 24, 2007, Miller Trucking entered into a “Hired Trucker Agreement” with Oldcastle Materials Southeast, Inc., d/b/a SRM Aggregates (“SRM Aggregates”) (hereinafter referred to as “the 2007 hired-truck agreement”). In 2007, at some point after the 2007 hired-truck agreement was entered into, SRM Aggregates, which was a wholly owned subsidiary of Oldcastle Materials, merged with APAC. The 2007 hired-truck agreement did not specify the work Miller Trucking was to perform, did not specify how APAC would pay Miller Trucking for the unspecified work, and did not include a fuel-price-adjustment clause.

After considering the submitted bids, ADOT chose APAC to supply a portion of the aggregate materials to the counties. ADOT and APAC entered into a contract at some point in 2007 that was effective until September 30, 2008 (“the 2007 ADOT-APAC contract”). On March 4, 2008, ADOT issued a document entitled “Special Terms and Conditions,” an addendum to the 2007 ADOT-APAC contract, effective from January 15, 2008, to September 30, 2008, allowing the price of the final delivery charge to be adjusted up or down based on the then current price of gasoline (“the 2007 ADOT-APAC fuel-price-adjustment clause”). Under the 2007 ADOT-APAC fuel-price-adjustment clause, as the price of gasoline increased or decreased, ADOT would increase or decrease the hauling rates owed APAC; the 2007 ADOT-APAC fuel-price-adjustment clause allowed for as much as a 15% decrease and as much as a 20% increase in the hauling rates owed to APAC.

Ben Miller’s deposition testimony indicates that fuel prices began increasing during the first quarter of 2008 and that he contacted APAC about the increase. Joe Hughes, an employee of APAC, had informed Ben Miller by telephone “that there was a fuel stipulation” in the 2007 ADOT-APAC contract that allowed APAC to recover increased charges from ADOT based on the rising cost of fuel. On March 19, 2008, Bén Miller e-mailed Linda Lan-dress, his primary contact at APAC, asking her if she had “heard anything on the fuel situation.” Landress responded to Ben Miller’s inquiry with the following email:

“From my understanding, we have someone in [the] accounting department who is going back to all deliveries and, based on rules on state bid, billing the [171]*171state entities a fuel surcharge. Once they pay, we will reimburse you that surcharge amount. Going forward, we will be adding the surcharge percentage to your haul rates as we set up orders to deliver.”

Ben Miller stated as follows in his deposition testimony about the e-mail exchange between him and Landress:

“Q. ... [W]hat was your understanding of what was going to take place in response to the fuel situation that you referenced in your e-mail?
“[Ben Miller:] That there was a surcharge between APAC and the state, and they would obviously attempt to procure the money.
“Q. Okay. In other words, APAC heard what you were saying, and they were going to invoke the surcharge that was part of their contract with the state?
“[Ben Miller:] Right, because I told APAC I could not haul and no one could.
“Q. Under the current fuel?
“[Ben Miller:] In the current situation.
“Q. The current situation being fuel prices were going up dramatically?
“[Ben Miller:] Yes.
“Q. Okay. So not only in response to what you had asked did APAC say we’re going to make sure that the — that we’ve invoke [sic] the fuel-surcharge provision with the state, but going forward, we’re also going to be adding the surcharge percentage to your haul rates, correct?
“[Ben Miller:] That is what this email says, yes.
“Q. ... [D]id you have an understanding that APAC was going to go back and make sure that the state for all the previous hauls that you had done had upped its fuel price based on the surcharge in the APAC and state contract?
“[Ben Miller:] Previous hauls?
“Q. Previous hauls?
“[Ben Miller:] I’m not aware that they did that. Yeah, I’m not aware.
“Q. Okay. But then on a going-forward basis, did you have an understanding that they were going to be invoking the fuel-surcharge provision and making sure that it was in place so that the price that they received on the state work was adjusted accordingly?
“[Ben Miller:] Yes.
“Q. Okay. And that ... would obviously flow down to Miller Trucking?
“[Ben Miller:] Yes.
“Q. And did that take place in 2008?
“[Ben Miller:] To the best of my knowledge, it did.”

In fact, from January 15, 2008, to September 30, 2008, which was during the term of the 2007 ADOT-APAC contract, APAC paid Miller Trucking approximately $1,000,000 for hauling services; approximately $200,000 of that amount was upward fuel-price-adjustment payments.

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Bluebook (online)
122 So. 3d 168, 2013 WL 135739, 2013 Ala. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-trucking-llc-v-apac-mid-south-inc-ala-2013.