Mon-Rite Construction Co. v. Northeast Ohio Regional Sewer District

485 N.E.2d 799, 20 Ohio App. 3d 255, 20 Ohio B. 317, 1984 Ohio App. LEXIS 12585
CourtOhio Court of Appeals
DecidedOctober 9, 1984
Docket47681
StatusPublished
Cited by12 cases

This text of 485 N.E.2d 799 (Mon-Rite Construction Co. v. Northeast Ohio Regional Sewer District) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mon-Rite Construction Co. v. Northeast Ohio Regional Sewer District, 485 N.E.2d 799, 20 Ohio App. 3d 255, 20 Ohio B. 317, 1984 Ohio App. LEXIS 12585 (Ohio Ct. App. 1984).

Opinion

Parrino, P.J.

Plaintiff, Mon-Rite Construction Company (“Mon-Rite”), appeals from the trial court’s granting of defendant Northeast Ohio Regional Sewer District’s (“Sewer District”) motion for summary judgment. For the reasons adduced below, we hold that *256 summary judgment was properly granted.

I

This action arises out of a contract between Mon-Rite and the Sewer District known as “Cuyahoga Valley Interceptor Contract No. F-6, Northeast Ohio Regional Sewer District Contract No. 670.” The contract was for the construction of the Northfield and Haw-thornden Trunks of the Cuyahoga Valley Interceptor Sewer.

The contract was entered into on July 25,1979, with Mon-Rite to begin work immediately. Contract F-6 provided for completion by December 6, 1980. Pursuant to Mon-Rite’s request, the Sewer District authorized Contract F-6, Change Order No. 8, which extended the contract completion date to August 31, 1981. In October 1981, the parties executed a Contract Completion Certificate. Under a cover letter dated October 22, 1981, the Sewer District issued check No. 11174 in the amount of $23,954.16 as final payment for Contract F-6, which check was negotiated by Mon-Rite.

On January 20, 1982 Mon-Rite filed a complaint in common pleas court alleging damages incurred in the performance of Contract F-6. The complaint was amended by Mon-Rite and now alleges three basic claims for relief.

The first claim arose out of what Mon-Rite alleges was incorrect, faulty and defective information given by the Sewer District regarding the ground condition to be encountered. Mon-Rite contends that the actual ground condition under the Ohio Canal required hand mining to ensure safety of persons and property. The contract, however, limited the methods of making the canal crossing. Pursuant to the contract’s construction specifications, the sewers could be placed only within a bored casing or by the jacking method.

Mon-Rite requested in writing that the specifications be changed to permit hand mining the tunnel under the canal. Although the Sewer District refused to allow the change, Mon-Rite commenced hand mining the tunnel. The Sewer District was informed of Mon-Rite’s decision in a letter dated November 28, 1979.

On February 11, 1980 Mon-Rite notified the Sewer District of another change in the ground condition which permitted the usage of the bored casing procedure. Mon-Rite abandoned its hand tunneling in favor of the bored casing procedure.

On September 19,1980, pursuant to a provision in Contract F-6, Mon-Rite made a formal request for an equitable adjustment of compensation in the amount of $50,081.88. This amount allegedly represents the extra costs Mon-Rite incurred due to the Sewer District’s faulty and defective information regarding the ground condition to be encountered. The Sewer District investigated the claim, and in a letter dated November 13, 1980, denied the claim. It was the Sewer District’s position that the ground conditions indicated in the contract specifications were identical to those actually encountered on the job.

Mon-Rite’s amended complaint sought recovery of damages in connection with this claim in the amount of $50,081.88 for increased costs for labor, materials, and equipment.

The second claim relates to an obstruction encountered by Mon-Rite on or about March 1, 1980 which caused a fault to develop in the bottom of the Ohio Canal and flooded the entire boring operation. The obstruction was later determined to be a sheet piling cutoff wall. Pursuant to Contract F-6’s “Differing Site Conditions” clause, Mon-Rite made a written claim for an equitable adjustment in the contract.

The Sewer District’s consulting engineer, Euthenics, Inc., determined that the best alternative was to reroute *257 the sewer so as to avoid the obstruction. After negotiations, Mon-Rite on April 15, 1980 submitted its monetary claim and a change order was granted for the damage caused by the obstruction. The Sewer District authorized Contract F-6, Change Order No. 2, which granted an equitable adjustment for Mon-Rite’s costs in controlling the canal water, recovery of its boring machine, and repairing the bottom of the canal, in the amount of $46,938.25.

In addition, Mon-Rite submitted its costs for construction of the sewer along the proposed realignment. An agreement was reached between the parties stipulating that additional costs which would be incurred by Mon-Rite to seal the existing bore under the canal and to realign the sewer totaled $128,142.00. These costs were then offset by the costs for items not performed due to the discontinuation of the original alignment, which offset amounted to $115,298. These negotiations culminated in the Sewer District’s authorization on May 15, 1980 of Contract F-6, Change Order No. 3, which provided for an increase in the contract amount of $12,844.

Mon-Rite now contends that it was damaged beyond the equitable adjustments made in Change Order Nos. 2 and 3. Mon-Rite alleges damages of $30,688.42 for job overhead cost during delay for redesign, and $62,492.77 for cost of idle equipment during delay for redesign.

Mon-Rite’s third and final claim arises out of a second obstruction and excessive leakage. The claim was made by Mon-Rite on July 14, 1980. On September 23, 1980 Mon-Rite sent the Sewer District a cost analysis of the damages. Mon-Rite contends that the obstruction was a piece of steel plate wedged into boulders used for fill in the construction of Canal Road.

The Sewer District investigated the claim and determined that the excessive leakage was due to Mon-Rite’s poor set up and operating and that the second obstruction did not in fact exist. Therefore, the Sewer District denied the claim for compensation.

Mon-Rite claims damages in its amended complaint in the amount of $40,373.25 for increased labor and equipment costs due to the obstruction and $5,730.77 for job overhead costs.

In addition to the above enumerated damages, Mon-Rite’s amended complaint alleges further damages caused by the faulty design, redesign and obstructions in the amount of $81,932.30 for general overhead costs,' $9,126.98 for increased labor costs, $3,023.36 for increased cost of trees which had to be purchased, and finally $84,374.28 in lost profit from decreased sales.

On August 29, 1983 the Sewer District filed a motion for summary judgment with supporting evidence. The Sewer District’s brief in support argued that the Sewer District was entitled to judgment as a matter of law because Mon-Rite’s acceptance of final payment released the Sewer District from liability; Mon-Rite’s failure to give notice prior to final payment precludes recovery; and the no damage for delay clause in the contract limits liability. The trial court granted the motion for summary judgment and dismissed the action. Mon-Rite now appeals, raising a single assignment of error:

“(A) The Trial Court erred in granting Appellee-Defendant’s Motion for Summary Judgment because there are genuine issues of fact in this case.”

II

The trial court may grant summary judgment if it finds that there are no genuine issues as to any material fact and that the moving party is entitled to judgment as a matter of law. Civ. R. 56.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Beasley v. Monoko, Inc.
958 N.E.2d 1003 (Ohio Court of Appeals, 2011)
Eagle v. Fred Martin Motor Co.
809 N.E.2d 1161 (Ohio Court of Appeals, 2004)
Stavick v. Coyne, Unpublished Decision (12-17-2003)
2003 Ohio 6999 (Ohio Court of Appeals, 2003)
Perini Corp. v. City of New York
18 F. Supp. 2d 287 (S.D. New York, 1998)
In Re: Graham Square, Inc.
126 F.3d 823 (Sixth Circuit, 1997)
Demczyk v. Mutual Life Insurance
126 F.3d 823 (Sixth Circuit, 1997)
Miller-Finocchioli v. Mentor Landscapes & Supply Co.
630 N.E.2d 785 (Ohio Court of Appeals, 1993)
APAC-Carolina, Inc. v. Towns of Allendale & Fair Fax
868 F. Supp. 815 (D. South Carolina, 1993)
Village Station Associates v. Geauga Co.
616 N.E.2d 1201 (Ohio Court of Appeals, 1992)
Wurth v. Ideal Mutual Insurance
518 N.E.2d 607 (Ohio Court of Appeals, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
485 N.E.2d 799, 20 Ohio App. 3d 255, 20 Ohio B. 317, 1984 Ohio App. LEXIS 12585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mon-rite-construction-co-v-northeast-ohio-regional-sewer-district-ohioctapp-1984.