Morrison-Knudsen Company, Inc. v. State

519 P.2d 834, 86 A.L.R. 3d 164, 1974 Alas. LEXIS 317
CourtAlaska Supreme Court
DecidedMarch 11, 1974
Docket1573
StatusPublished
Cited by12 cases

This text of 519 P.2d 834 (Morrison-Knudsen Company, Inc. v. State) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morrison-Knudsen Company, Inc. v. State, 519 P.2d 834, 86 A.L.R. 3d 164, 1974 Alas. LEXIS 317 (Ala. 1974).

Opinions

OPINION

CONNOR, Justice.

On November 5, 1964, plaintiff-appellant Morrison-Knudsen (“M-K”) entered into a construction contract with the State of Alaska to perform work at the Sitka Airport on Japonski Island. A claim for additional compensation arising out of the contract evolved into a nonjury trial lasting seven days in the superior court. The sole issue for determination was that of liability, the parties having stipulated to reserve the question of amount of liability. On November 25, 1970, the trial court rendered its findings of fact and conclusions [836]*836of law granting judgment in favor of defendant-appellee State of Alaska. Subsequently, the superior court awarded the state its costs, including attorney fees in the amount of $22,633.91. This appeal challenges both the judgment of nonliability and the award of attorney fees.

In the early 1960’s the State of Alaska, Division of Aviation, retained the joint venture Galliett & Silides to investigate the need for an airport at Sitka, Alaska, and to determine what, if any, runway alignments would be possible there. During October, 1962, as part of the second stage of their assignment, Galliett & Silides investigated the ocean floor at Whiting Harbor and the areas on the outside of a causeway in an attempt to find possible sources of materials. Probes 1 of the ocean floor by a scuba diver indicated that the bottom was easily penetrable. Random sampling-retrieved buckets of stones from the surface of the ocean floor ranging from 2 to 4 inches in diameter. While sitting in his skiff during the investigation, Mr. Silides observed stones 12 to 14 inches in diameter where the water was shallow enough to see bottom. Their investigations completed, Galliett & Silides reported to the Division of Aviation, inter alia, that

“This apparently dredgable material is found on all sides of the existing causeway and islands at various depths, ranging down to approximately 45 feet below mean time [ric] and extending from [ric] undetermined depth.”

In late May, 1964, the state retained John D. Ballard in connection with the project. Ballard’s primary responsibility was to determine the stability of the ocean bottom sediments where the runway would be placed. Based on his observations of these sediments, he was also asked to estimate possible quantities of fill they might yield. Ballard submitted a one-page supplement to his report, which he also reduced to a drawing, outlining three probable areas where dredging might yield enough fill materials for the runway. These areas he defined so as not to preempt a contractor’s choice of dredging equipment.2 For example, the areas were confined within 3900 feet of the runway to prevent the use of a booster which might discourage the utilization of a hydraulic dredge.

Later that spring, the State Division of Aviation prepared a design of Sitka Airport which was ultimately issued to bidders on August 21, 1964, calling for a bid opening date of October 8, 1964. Included in the documents furnished to the bidders, but not designated part of the project specifications, was a drawing entitled “Areas Proven Suitable For Dredging,” (emphasis added) apparently based on the Ballard drawing but varying it by extending Ballard’s area no. 1 beyond the sheltered portions of Whiting Harbor.3 Accompanying [837]*837this drawing was Ballard’s Subsurface Investigation Report, which was also not part of the specifications, but which was made available to provide prospective bidders “with the same basic soils information that the state possesses relative to the Sitka project.”

Also included in the documents were the following provisions:

1. A requirement that each bidder carefully examine the work site for himself ;
2. A specific disclaimer (a) of guaranty of the soil information and (b) of liability for extra work occasioned by any variance between the actual soil or material conditions and those indicated by borings;
3. Permission for the contractor to dredge wherever he chose so long as he kept sufficiently distant to avoid damaging the landing strip embankment and the existing causeways connecting Japonski Island with the other islands;
4. Permission for the contractor to use whatever equipment he wished so long as it was in satisfactory condition and was of sufficient capacity to maintain the embankment schedule;
5. A reiteration of the work site examination requirement and the specific disclaimers of guaranty of soil information and liability for extra work;
6. An absolute prohibition of oral modification of the contract.

Aner W. Erickson was the man in charge of preparing M-K’s bid. To familiarize himself with the project requirements, he:

—read the plans and specifications;
—traveled to the site with these documents in hand;
—walked the length of the causeway;
—viewed the three dredge areas from the shore (but did not attempt to go out over them in a boat);
• — generally studied the total configuration as it related to all phases of the job.

Based on the documents and on his observations insofar as they seemed to confirm the documents, Erickson concluded that hydraulic dredging would be economically feasible. . Upon his return to Anchorage following this site examination, he requested American Dredging Corporation of Alaska to give him a price on the Sitka dredging. Ken Martin, president of American Dredging, flew to Sitka and returned shortly with the figure which M-K used in preparing its bid. Ultimately M-K entered a subcontract agreement with American Dredging.

Meanwhile, other prospective bidders had been conducting their own investigations at the site. In July, 1964, S. S. Mullen, Inc., took samples with a clamshell dredge. Some of the samples contained boulders.4 On or about September 1, 1964, Marquand 5. Gorton5 looked at the dredging portion of the job for PNZ Constructors to make an estimate of the cost. Gorton cruised over the dredge areas in a boat to test their suitability specifically for hydraulic dredging.6 Upon looking down into the [838]*838water, he observed “a great many boulders sprinkled” over the bottom. In addition, he noted that parts of the dredge areas were obviously exposed to swells, waves, and wind. Based on these observations he concluded that it would be extremely difficult to use a hydraulic dredge economically.

Gorton related his conclusion to both Albert W. Wilson, resident engineer at the project, and the Mayor of Sitka. As an alternative to the proposed dredge areas, he requested that the Indian River deposit be made available as a materials source. The state, however, would give no assurance of Indian River’s availability, and PNZ declined to bid on the project.

All of the bids exceeded the engineer’s estimate. Of the five bidders who submitted an alternate bid schedule, M-K’s bid on the Class D Core Embankment (for which the dredged fill would be required) was the lowest, with a unit price of $1.74 per yard. Second lowest was S. S. Mullen, Inc., with a unit price of $1.75.

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

Related

Cook v. Oklahoma Board of Public Affairs
1987 OK 22 (Supreme Court of Oklahoma, 1987)
Atlantic Richfield Co. v. State
723 P.2d 1249 (Alaska Supreme Court, 1986)
New Pueblo Constructors, Inc. v. State
696 P.2d 185 (Arizona Supreme Court, 1985)
B-E-C-K Constructors v. State, Department of Highways
604 P.2d 578 (Alaska Supreme Court, 1979)
Lewis v. Anchorage Asphalt Paving Co.
535 P.2d 1188 (Alaska Supreme Court, 1975)
Western Airlines, Inc. v. Lathrop Company
535 P.2d 1209 (Alaska Supreme Court, 1975)
Lynden Transport, Inc. v. State
532 P.2d 700 (Alaska Supreme Court, 1975)
Morrison-Knudsen Company, Inc. v. State
519 P.2d 834 (Alaska Supreme Court, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
519 P.2d 834, 86 A.L.R. 3d 164, 1974 Alas. LEXIS 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morrison-knudsen-company-inc-v-state-alaska-1974.